A Critical Analysis of the Impact of Tax Audit Policies on Tax Compliance in Ghana

Tax compliance remains a significant challenge in Ghana, limiting revenue generation for critical public services. Non-compliance, including tax evasion and underreporting, has prompted authorities to strengthen tax audit policies. This study examines the effectiveness of regular audits, automated audits, quality assurance policies, and their educational role in improving compliance. The study's main objective is to assess the impact of desk, field, and back-duty audits on compliance, the role of automation in tax audits, and the influence of quality assurance policies on tax compliance in Ghana. A quantitative research design was adopted, incorporating primary data from structured questionnaires distributed to 1,420 taxpayers and secondary data from the Ghana Revenue Authority (GRA). Descriptive statistics, including frequency distributions and percentages, were used for data analysis. Findings indicate that regular audits enhance compliance through deterrence, while automated audits improve efficiency. However, concerns about auditor independence and excessive revenue focus on education persist. The study concludes that tax audits must integrate deterrence, automation, quality assurance, and education to foster voluntary compliance. Policymakers should ensure transparency, fairness, and taxpayer engagement in audit practices to improve tax compliance in Ghana.