THE EFFECTIVENESS AND EFFICIENCY OF TAX MANAGEMENT. A STUDY OF GHANA REVENUE AUTHORITY OFFICE AT ASOKWA.

ABSTRACT

The main aim of this study is to investigate the effectiveness and efficiency of tax management using the Ghana Revenue Authority Asokwa office as a study area. The study was descriptive in nature and employed the quantitative method in data collection and analysis. The study population was Two Hundred (200) made up of the staff and management members of Ghana Revenue Authority (GRA) at the Asokwa office in Kumasi. The researcher also adopted the stratified random sampling to select a sample size of One Hundred and Thirty-Two (132) using the formula proposed by Yamane (1967) in determining a representative sample size. Data for the study was also sourced from both primary and secondary sources. The primary data collected was quantitatively analysed using The Statistical Packages for Social Sciences (SPSS) version 20 into descriptive statistics such as frequency distribution tables, comparison of means and standard deviation and a correlation analysis.  The findings revealed that GRA has put in key measures so as to achieve efficiency in tax management. Also, prudent measures have been put in place to ensure that the Asokwa division achieve effectiveness in its tax management. Further, there is a positive relationship between efficiency and effectiveness of tax management on revenue generation at GRA, Asokwa office and indicated by the correlation values. In addition, challenges some of which are insufficient administration staff with low skills, high levels of illiteracy among tax payers, lack of adequate resources to sustain and facilitate the operation of tax authorities confront the smooth flow of tax management at GRA. Based on these findings, the researcher recommended that tax authorities should ensure that laws are enforced so that defaulters are penalized. Also, there should be proper documentation of citizen’s data so as to easily identify individuals who are mandated by law to pay taxes. Finally, government should adequately resource the GRA with the necessary resources so as to make them efficient and effective in their tax collection.