Title: The influence of tax audit on tax compliance in Ghana

Authors: Ibrahim Bedi

Addresses: Department of Accounting, University of Ghana Business School, P.O. Box LG 78, Legon, Accra, Ghana

Abstract: The economy of developing countries is associated with low tax revenue due to non-compliance. This study assesses the statistical significance of tax audits on tax compliance in Ghana. The content analysis approach was adopted to gather a three (3) year panel data of 160 sampled companies made up 25 listed entities and 135 non-listed entities for the period 2011-2013. The study finds that tax audit and cash flow have no significant influence on tax compliance. However, board size and auditor type are significant and positively related to tax compliance. Industry has a statistical significant negative influence on tax compliance. The study confirms the truism that taxpayers would not voluntarily comply with tax obligations. The study contributes to the literature on measure and predictors of tax compliance and the predictors of tax compliance. Tax authorities must encourage corporate taxpayers to maintain competent boards and external auditors to promote tax compliance.

Keywords: tax audit; tax compliance; non-compliance; Ghana; auditing; developing countries; cash flow; board size; auditor type; industry type.

DOI: 10.1504/IJMP.2016.076742

International Journal of Management Practice, 2016 Vol.9 No.2, pp.132 - 141

Received: 02 May 2015
Accepted: 16 Dec 2015
Published online: 25 May 2016 *

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