Ghana’s ability to strengthen domestic revenue mobilisation and create a more predictable business environment will depend less on stricter tax enforcement and more on building confidence in the integrity of the tax system, according to tax law expert Prof. Abdallah Ali-Nakyea.
Speaking during the Accountants Week Celebration organised by the Institute of Chartered Accountants, Ghana (ICAG) at Mawuli School, Ali-Nakyea argued that weaknesses within the country’s tax administration framework are creating broader implications for investor confidence, business planning and long-term economic sustainability.
He warned that persistent implementation challenges, inconsistent enforcement practices and institutional capacity constraints were doing more than reducing administrative efficiency; they were “undermining the perceived fairness and credibility of the tax system,” weakening taxpayer confidence and reducing willingness to comply.
While Ghana’s taxation structure is supported by constitutional provisions and statutory frameworks, Ali-Nakyea stressed that strong laws alone are insufficient if implementation remains weak.
He noted that the legal framework “does not, in itself, guarantee effective tax governance,” adding that shortcomings in how tax laws are applied continue to affect compliance levels and ultimately constrain revenue generation.
Framing trust as an economic and institutional issue rather than simply a social one, he described taxpayer confidence as a form of “institutional capital that shapes compliance behaviour.”
According to him, businesses and taxpayers are more likely to comply voluntarily when systems are perceived as transparent, accountable and consistently applied. However, when enforcement appears selective or public resources are perceived to be mismanaged, trust weakens, and compliance suffers.
In the Ghanaian setting, he observed that trust is often “conditional rather than automatic,” with taxpayers paying close attention to whether authorities demonstrate competence and transparency before determining their level of cooperation.
Addressing tax practitioners, Prof. Ali-Nakyea called on the Commissioner-General of the Ghana Revenue Authority (GRA) to introduce Practice Notes and Private Rulings to provide clearer guidance on tax matters, arguing that this would support practitioners in delivering stronger advisory services within a more structured system.
He also cautioned against aggressive tax planning practices, urging practitioners to avoid schemes that “exploit loopholes or lack commercial substance,” warning that such approaches expose businesses to regulatory risks while creating reputational challenges for both firms and practitioners.
To improve outcomes, he advocated reforms including the simplification and digitisation of tax administration systems to “reduce the discretion of tax officials” and minimise opportunities for corruption.
He further emphasised that stronger transparency around the utilisation of public tax revenues would play a significant role in shaping taxpayer attitudes and strengthening compliance behaviour.
Ali-Nakyea underlined that long-term revenue sustainability and economic confidence would depend more on the quality of administration than on the intensity of enforcement, insisting that a tax system perceived as fair and accountable “will command greater and more durable compliance than one that relies on coercion alone.”
