Taxation remains the principal mechanism through which governments mobilise revenue to finance public expenditure and sustain socio-economic development. The effectiveness of a tax system, however, depends not only on the robustness of its legal framework but also on the extent to which taxpayers comply with their obligations in practice. This paper examines the interrelationship between tax audits, tax compliance, and dispute resolution within Ghana’s tax administration system, advancing the argument that the current framework is disproportionately enforcement-driven and insufficiently aligned with behavioural and trust-based approaches to compliance. Adopting a doctrinal and analytical methodology, the paper draws on statutory provisions, judicial decisions, administrative practices, and relevant scholarly literature. It analyses tax audits as a central enforcement mechanism, highlighting their roles in detection, deterrence, and revenue mobilisation, while also identifying their limitations when applied in isolation. The paper further explores tax compliance from both legal and behavioural perspectives, emphasising the significance of trust, fairness, and taxpayer engagement in sustaining voluntary compliance. It also examines dispute resolution mechanisms as a critical component of tax administration, underscoring their role in enhancing legitimacy, protecting taxpayer rights, and ensuring adherence to the rule of law. The paper contributes to existing scholarship by advancing an integrated framework that treats tax audits, compliance, and dispute resolution as interdependent elements of a unified system rather than discrete functions. It contends that effective tax administration requires a recalibrated approach that balances enforcement with facilitation and trust. The paper concludes that reforms aimed at simplifying tax processes, strengthening taxpayer rights, improving administrative efficiency, and enhancing dispute resolution mechanisms are essential to achieving sustainable revenue mobilisation, strengthening the fiscal contract, and promoting good governance in Ghana.
Ali-Nakyea et al. (Thu,) studied this question.