An Assessment of Tax Digitalisation and Tax Compliance Relationship in Cameroon: The Mediating Role of Behavioural Intentions

Abstract

The main objective of the study is to investigate the relationship between digitalisation and the level of tax compliance in Cameroon. The study used a causal research design with a sample size of 200 tax payers who used the online tax system and the sampling technique was the purposive sampling technique of companies and business familiar with the online tax system. The study used primary data gotten with the use of a five-point Likert scale questionnaire. The relationship between tax digitalisation and tax compliance with behavioural intentions as the mediator was analysed using Partial Least Square-Structural Equation Modeling (PLS-SEM). The results of the study revealed that, effort expectations and accessibility and reliability have a positive and significant relationship with tax compliance while the cost involved in using the e-tax system had an insignificant relationship with tax compliance. Effort expectations was partially mediated by the tax payers' behavioural intentions. We therefore recommend that the government should make the site to be user friendly that is very easy to use and accessible by all Cameroonian tax payers.

Digital Tax Policy and Tax Revenue Collection in Cameroon

“…Allahverdi et al (2017), using secondary data from the Turkish revenue authority, study the data in two groups (pre and post the e-tax system), and find that the e-tax system positively affected tax revenue. Results from Fossung and Warah (2022), who examine the relationship between digitalisation and the level of tax compliance in Cameroon, reveal that digitalisation registered a positive and significant effect on tax compliance. Kiringa and Jagongo (2017) investigate the effect of online tax filing on tax compliance among SMEs in Kenya, and results indicate that online tax filing has a positive impact on SMEs' level of tax compliance.…”

“…Research has also focused on the impact of digital solutions, such as electronic filing, on tax compliance (Ofurum et al 2018). Research shows that there have been positive and significant improvements in tax compliance (Fossung and Warah 2022;Akinboade 2014;Kiringa and Jagongo 2017;Etim et al 2020).…”

Digitalization and the Changing Landscape of Tax Compliance (Challenges and Opportunities)

“…Rapid changes in technology pose challenges to the development and adaptation of tax regulations. The gap between technological and regulatory developments needs to be addressed to ensure that the tax framework remains relevant and effective (Fossung 2020) (Apollo,2024). The accelerated pace of technological advancements introduces complexities for regulatory bodies striving to establish and revise tax policies.…”