Assessing The Impact Of Digitalization In Achieving Property Tax Compliance

Abstract

The study assessed the expectations of digitalisation of property tax systems in Ghana. It examined the effect of accessibility and reliability in tax digitalisation on property tax compliance in Ghana. Moreover, the study investigated the effect of effort expectation in tax digitalisation on property tax compliance in Ghana. Finally, it assessed the effect of cost in tax digitalisation on property tax compliance in Ghana. The study is quantitative, non-experimental, and adopts the descriptive cross – sectional survey design. Owners of immovable structures in Accra and Kumasi formed the population. Structured questionnaire was used as the data collection instrument. Simple random sampling technique was used to select 370 respondents. Covariance-based structural equation modeling was used as the analysis technique. The study revealed that property tax owners expect digitalisation of property tax in Ghana. Moreover, the effect of accessibility on property tax compliance was found to be significantly positive. Additionally, the effect of effort expectation on property tax compliance was found to be significantly positive. However, the effect of cost involved in tax digitalisation on property tax compliance was found to be positive but statistically insignificant. The study recommends that the Government of Ghana through the Ghana Revenue Authority should developed accessible, reliable, cost effective, and hustle-free digitalized property tax system. This will lead to property tax compliance among property tax payers in Ghana. It is also recommended that, property tax payers should be educated on the operation of the digitalised property tax system.