Tax Audit Role in Revenue Mobilisation in Ghana Revenue Authority: The Case of Large Taxpayer Office

Abstract

This study sought to ascertain the role of Tax Audit in Mobilizing Tax Revenue domestically. The research examined tax compliance and revenue mobilisation and possible challenges confronting Tax Auditors. Data was gathered from the Large Taxpayers Office on Tax Audit Assessment and Tax Revenue. Also questionnaire was designed where 30 Tax Auditors were sampled to ascertain the challenges that confront tax audit. Probit regression, Descriptive statistics and Correlation coefficient were employed in this study. The study found a positive significant relationship between compliance level and external auditor type. This can be explain that, there is a high probability of firms to comply with tax regulations if their external auditors are among the biggest four audit firms in Ghana. Big firms are capable of compelling tax payers to comply probably because of goodwill. Also, the study found that Tax Audit in itself enhances compliance as well as revenues mobilization. Various challenges the tax auditors encounter includes; the unwillingness of tax payers to corporate with auditor, taxpayer being economical with respect to information and tax payers deliberating delaying the process.