Examining How Digitalization Affects Tax Compliance in Ghana Using Structural Equation Modelling (SEM)

This research study delved into the multifaceted realm of tax compliance within the digital economy context, with a specific focus on the impact of digitalization, the role of taxpayer education programs, and the importance of taxpayer awareness programs. A diverse sample of 278 participants, encompassing individuals engaged in various digital businesses and taxpayers in Ghana, provided valuable insights through structured questionnaires. This study examined the complex area of tax compliance in the context of the digital economy, paying particular attention to the effects of digitalization, the function of taxpayer education initiatives, and the significance of taxpayer awareness campaigns. Through the use of structured questionnaires, a varied sample of 278 participants; including taxpayers in Ghana and those involved in a range of digital businesses, providing insightful answers. The study produced important results by using a robust Structural Equation Modelling (SEM) technique. It was discovered that digitization has a favourable impact on tax compliance, highlighting its capacity to act as a stimulant for improved compliance practices. Additionally, initiatives to raise taxpayer knowledge and education have become essential in encouraging tax compliance in the digital economy. The significance of thorough tax education programs and awareness efforts is shown by these findings. As a result, this study encourages stakeholders to take the initiative and makes suggestions for managers, legislators, academics, and business leaders to use digitalization's revolutionary potential to promote tax compliance. Future scholars are encouraged by this work to go deeper into this dynamic field in order to better understand how the digital economy affects taxation and compliance.