Automation System Procedure of the Ghana Revenue Authority on the Effectiveness of Revenue Collection: A Case Study of Customs Division

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For any government to match in performance with the growth and expectations of its citizenry, it must dramatically increase its fiscal depth without incurring costly recurring overheads. Automated systems have been proven to be capable of introducing massive efficiencies to business processes that can result in increased revenue. Applying technological solutions towards the strategic goals for government will be a key step towards transforming government into an entity that can keep abreast of the needs, requirements and expectations of today's modern world. The aim of this study was to examine the automation system procedures of the Ghana Revenue Authority on the effectiveness of revenue collection. After interviewing forty (40) officials from the Customs Division (CD) with specific duties and responsibilities in automation system management at the Ghana Revenue Authority (GRA) it can be said that the automation is a powerful monitoring tool for GRA. The research reports findings based on cross sectional approach to investigating GRA’s experiences with automation, efficiency and effective tax administration. The evidence suggests a positive impact of automation system usage and the cost of tax administration, automation and effectiveness of revenue collection. Additionally, automation was significantly related with tax clearance time. The research makes significant empirical contribution to analyzing tax automation and administration cost, time efficiency and effectiveness of revenue collection. Some of the results are consistent with the notion that automation leads to efficiency in tax administration.. As such, the primary aim of computerized revenue collection (automation system) must be to dramatically increase cash receipts in order to effectively sustain the utility and generate an acceptable return on investment related to the system.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters in Business Administration, April, 2012