E-taxing maturity in developing economies: evidence from corporate tax payers in Ghana

Abstract

Purpose

The adoption of e-taxing plays an important role in modernizing tax administration. Ghana, like many other developing countries, has adopted e-taxing to modernize its revenue collection processes and improve its tax-to-GDP ratio. This study aims to examine the current state of e-taxing maturity in Ghana, focusing on the advancements made and what can be done to achieve a mature e-taxing system.

Design/methodology/approach

Through qualitative design, interviews were conducted with Ghana Revenue Authority, National Information Technology Agency and Businesses to provide an in-depth understanding of the strengths, weaknesses and opportunities for improving e-taxing maturity.

Findings

The study reveals mixed e-taxing maturity. While the digital service aspect of e-taxing has seen progress, digital infrastructure, digital analytics, digital integration and digital culture hinder the full actualization of mature e-taxing.

Research limitations/implications

The findings suggest the need for a comprehensive plan that addresses regulatory, cultural, technical and organizational aspects to drive digital transformation in e-taxing tax implementation.

Social implications

The lack of resilient infrastructure, especially in rural areas, can worsen societal inequalities. Owing to the lack of telecommunication infrastructure and poor internet connectivity in rural areas, businesses in these areas may lack the needed information for business growth and expansion. This can result in unfair treatment of rural businesses widening the inequality gap between businesses in urban areas and rural areas. Therefore, the study is important from the standpoint that implementing the recommendations will help to bridge the gap between businesses in urban areas and rural areas.

Originality/value

To the best of the author’s knowledge, this study is among the first to conduct an empirical study on e-taxing maturity in Ghana.

Citation

Acquah, A. (2024), "E-taxing maturity in developing economies: evidence from corporate tax payers in Ghana", Digital Policy, Regulation and Governance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/DPRG-06-2024-0131