Assessment of Tax Compliance Procedures and Its Impact on Revenue Generation in Techiman Municipality

George Yeboah ,Luther Ntim Adjei

doi:10.7176/rjfa/11-12-10

Abstract

The study sought to determine the effect of tax compliance on revenue generation in the Bono East Region of Ghana. The research work was justified and significant because of the critical role of taxes in the accomplishment of GRA developmental goals and the satisfaction of the local people. This study was explanatory, employing quantitative methods of data collection. The study targeted employees of GRA-Techiman, GRA-Atebubu and GRA-Wenchi. A total sample size of 97 was chosen. Quota and simple random sampling were adopted in selecting the respondents. The regression analysis model was adopted as the model specification for this study. The study found that tax compliance was observed in Ghana Revenue Authority. However, not all components of the control principles were adequately followed. However, tax compliance principles had a positive and significant relationship with revenue generation. There was a positive relationship between tax monitoring and revenue generation, a positive relationship between information and communication and revenue generation, and tax control activities positively and significantly predicted revenue generation. Furthermore, there was a positive and significant relationship between tax risk assessment and revenue generation. It is recommended that activities such as customer complaint surveillance and feedback and audits performed periodically by internal auditors should be monitored and managed frequently. Keywords: Tax, Tax Compliance, Revenue Generation, Ghana Revenue Authority. DOI: 10.7176/RJFA/11-12-10 Publication date: June 30th 2020

Highlights

Public sector is the body of government entities established with the main aim of providing regular services to the whole society effectively and efficiently
The correlations are; revenue generation and tax monitoring (r = 0.865, p = 0.000 < 0.05), revenue generation and information and communication (r = 0.324, p = 0.000 < 0.05), revenue generation and tax control activities (r = 0.893, p = 0.000 < 0.05), and revenue generation and tax risk assessment. This means that all the tax compliance variables (Information and communication, Tax control activities, Tax risk assessment and Tax Monitoring) predict revenue generation
Tax control activities positively and significantly predicted revenue generation, such that 66.5% of the variation in the revenue generation is explained by tax control activities

Summary

Introduction

Public sector is the body of government entities established with the main aim of providing regular services to the whole society effectively and efficiently. This study adopted the classification of tax compliance procedures into risk assessment, information, and communication, monitoring, and control activities by authors such as Appiah (2012), Ebowessuman (2016), www.iiste.org and the Institute of Internal Auditors(IIA, 2017). Tax compliance systems need to be monitored to ensure effective revenue generation and increased tax compliance (Shanszadeh & Zolfaghari, 2016). With these tax compliance procedures, it is prudent to examine how each tax compliance procedure affect revenue generation in the local government sector in the Techiman Municipality since no such study has been undertaken

Objectives

Results

Discussion

Conclusion