Digitalization and Tax Administration in the Gambia

Abstract

This study extensively explored the potential of digitalization in The Gambia Revenue
Authority's tax administration, amidst concerns over the practical application of digital tools
and their underutilization, which have hindered the realization of improved revenue
mobilization and efficient tax processes in The Gambia. The research, adopting a mixedmethod design, aimed to understand the intricate relationship between digitalization and tax
administration in The Gambia. With specific objectives, including identifying driving factors,
examining effects, and evaluating the correlation with GRA's performance, the study adopted
quantitative and qualitative analyses. Similarly, the study population is two thousand, one
hundred and eighty-eight (2188). Using Krejcie and Morgan (1970) formula, out of 2188
population of the study, three hundred and twenty seven (327) were selected as the sample
size. This encompassed individuals drawn from the Ministry of Finance and Economic
Affairs, GRA staff, and corporate taxpayers using a stratified and proportionate-to-size
sampling approach. Hypotheses analysis revealed a statistically significant and positive
effect of digitalization on tax administration, indicating improved efficiency and GRA
effectiveness. Also, Spearman's rank-order correlation affirmed a positive relationship
between digitalization and tax administration. Furthermore, qualitative insights from
stakeholder interviews highlighted drivers such as international financial body stipulations,
modernization imperatives, trust-building, accurate record-keeping, and alignment with
global standards. Recommendations include training programs for GRA staff, public
awareness campaigns, and enhancing user experiences for e-payment systems, among others.