Implementing a Revenue Authority Model of Tax Administration in Ghana

Abstract

The desire to increase domestic revenue mobilization has made tax reform a priority for governments in many developing countries. Addressing the tax problem, however, is often a complex process that involves reforming the tax system, as well as setting up effective administrative structures to administer that system. Many see the revenue authority (RA) model as the solution to these problems. Developing an RA model in Ghana began in the mid 1980s; it was not, however, fully operational and integrated until 2010. Using social learning theory, we argue that Ghana's successful readoption of the RA model can be attributed to the lessons learned both in its own first attempts and from the successful tax reform experiences of other countries.

The Punjab Revenue Authority: Meeting the challenges of a new institution

“…In order to deal with potential goal conflict between the RA and its employees, performance bonuses for reaching targets were paid in the RAs of Ghana (Ohemeng & Owusu, 2015: Joshi & Ayee, 2009), South Africa (Taliercio, 2004a(Taliercio, , 2004b, and Uganda (Therkildsen, 2004). However, the implementation of bonuses was sometimes problematic.…”

“…Finally, advocates of RAs, like in Pakistan, pointed to the success of other RAs as means of legitimizing the reform in their own countries. As the existing studies hint at, the successful pioneers of Ghana and Peru were often used as examples to legitimize this institutional innovation in several countries (Fjeldstad & Moore, 2009;Kidd & Crandall, 2006: von Haldenwang et al, 2014Ohemeng & Owusu, 2015). For example, the creators of the Ugandan RA referred to the pioneering case of Ghana (and its success) when establishing their own RA (Therkildsen, 2004); the creators of the RA in Rwanda, in turn, referred to models in Uganda, Kenya, and Tanzania, adopting very similar designs (Fjeldstad & Moore, 2009…”

“…The existing research on revenue authorities is largely atheoretical (for exceptions, see Taliercio, , and Ohemeng & Owusu, ). In this study, we systematically utilize the various streams of new institutionalist research in political science to show how meeting the challenges outlined by institutionalism contributed to the successes of the Punjab Revenue Authority (PRA) in Pakistan.…”

“…The existing research on revenue authorities is largely atheoretical (for exceptions, see Taliercio, 2004b, andOhemeng &Owusu, 2015).…”

Taxation Policymaking in Ghana

“…According to government, the policy had the potential to minimize revenue loss by curbing high rates of tax avoidance, tax evasion, and fraud. Tax leakages emanating from poor checks and fragile control measures were to be remedied (Ohemeng and Owusu 2015).…”