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- 3 Marks
Question
The Ghana Revenue Authority (GRA) has embarked on serious tax reforms to enable it to achieve its tax revenue targets year after year. As part of the reforms, it has been said that GRA should pursue voluntary tax compliance if it really wants to meet its revenue target.
Required:
Recommend THREE factors that are necessary to ensure voluntary tax compliance.
Answer
To achieve voluntary tax compliance, the following factors are essential:
- Simplified tax laws and procedures
- Tax laws should be simple and easy to understand, and tax procedures should be straightforward. Simplifying tax filing and payment processes reduces complexity and encourages taxpayers to comply voluntarily.
- Taxpayer education and services
- Taxpayers should be educated about their tax obligations and the benefits of paying taxes. The GRA should provide support services such as tax guidance, help centers, and online resources to assist taxpayers in meeting their obligations.
- Enforcement of penalties and sanctions
- The imposition of penalties for non-compliance and stricter enforcement measures act as deterrents to tax evasion. Taxpayers will be more likely to comply if they are aware of the consequences of non-compliance.
- Tags: Penalties, Simplified Procedures, Tax Compliance, Taxpayer Education
- Level: Level 3
- Topic: Tax administration in Ghana
- Series: NOV 2018
- Uploader: Dotse