Tax audit effectiveness in an emerging market revenue authority: an empirical analysis

Purpose The study examines the determinants of Tax Audit Effectiveness in an emerging market revenue authority. Specifically, it examines whether organisational, auditor, taxpayer and regulatory factors are related to tax audit effectiveness in a national revenue authority operating in Ghana. Design/methodology/approach A cross-sectional survey of 183 tax auditors from the Domestic Tax Revenue Division across three administrative zones was analysed using exploratory factor analysis and standard multiple regression analysis. Findings Results indicate that auditor capability, taxpayer cooperation and regulatory clarity are positively associated with tax audit effectiveness, while organisational factors are not statistically significant. The specification explains 69.3% of the variance, evidencing strong explanatory power. Research limitations/implications Findings reflect the perspectives of tax auditors from one authority; future work may consider multiple sources of taxpayer data and compare across institutional settings. Practical implications Investments in auditor competence and independence, taxpayer engagement and timely access to records and predictable enforcement/regulatory guidance are likely to yield measurable improvements in audit effectiveness. Originality/value This study extends prior work by showing that, within a legally codified and risk-based revenue administration environment, formal organisational structures do not independently predict tax audit effectiveness once auditor capability, taxpayer cooperation and regulatory clarity are jointly considered. By applying a contingency perspective, the study offers actionable insight into which levers matter most for improving audit outcomes in emerging market tax administrations.