The Impacts of Digital Governance in Strengthening Tax Compliance and Enhanced Revenue Mobilisation in Sierra Leone
Authors
Senior Lecturer, African University of Science and Technology, Abuja, Nigeria Deputy Managing Director, Sierra Leone, Water Company, Freetown, Sierra Leone (Nigeria)
Main Supervisor for this Thesis for the Award of M. Sc in Public Policy African University of Science and Technology, Abuja (Nigeria)
Head of Department, Public Policy and Public Administration Co - Supervisor for this Thesis for the Award of M. Sc in Public Policy African University of Science and Technology, Abuja (Nigeria)
Article Information
DOI: 10.51244/IJRSI.2025.1210000214
Subject Category: Governance
Volume/Issue: 12/10 | Page No: 2412-2475
Publication Timeline
Submitted: 2025-10-20
Accepted: 2025-10-28
Published: 2025-11-15
Abstract
This study critically examined the role of digital governance in strengthening tax compliance and revenue mobilisation in Sierra Leone, focusing on the transformative impact of three flagship systems: the Integrated Tax Administration System (ITAS), Electronic Cash Registers (ECRs), and ASYCUDA World. Using a mixed-methods approach that combined econometric analysis, stakeholder interviews, and document reviews, the research explored how digital transformation has enhanced transparency, improved administrative efficiency, and influenced taxpayer behaviour within the National Revenue Authority (NRA).
Keywords
Digital Governance, Tax Compliance, Revenue Mobilisation
Downloads
References
1. African Development Bank (AfDB), 2001. Sierra Leone: Country Strategy Paper 2001–2003. Abidjan: AfDB. [Google Scholar] [Crossref]
2. Akinyosoye-Gbonda, A., 2022. ICT adoption and public enterprise performance in Sierra Leone: Evidence from the tax administration sector. Freetown: Leone Economic Policy Journal. [Google Scholar] [Crossref]
3. Akinyosoye-Gbonda, O. O. (2022). E-Governance in Revenue Collection and Customs Administration in Sierra Leone – A Survey. European Journal of Political Science Studies, 7(1). https://oapub.org/soc/index.php/EJPSS/article/view/1667 [Google Scholar] [Crossref]
4. Alm, J. (2019). 'What Motivates Tax Compliance?', Journal of Economic Surveys, 33(2), pp. 353–388. Available at: https://onlinelibrary.wiley.com/doi/10.1111/joes.12272 (Accessed: February 21 2025). [Google Scholar] [Crossref]
5. Alm, J. and Martinez-Vazquez, J., 2003. Institutions, paradigms, and tax evasion in developing and transition countries. Public Finance in Developing and Transitional Countries, pp.146–178. [Google Scholar] [Crossref]
6. Anyanwu, J.C. (2017). 'Taxation and African Economic Development', African Development Review, 29(3), pp. 221–236. Available at: https://onlinelibrary.wiley.com/doi/10.1111/1467-8268.12260 (Accessed: February 21 2025). [Google Scholar] [Crossref]
7. Baer, K. & Le Borgne, E. (2018). Tax Administration and the Shadow Economy: How to Bring Economic Activity into the Tax Net. International Monetary Fund. Available at: https://www.imf.org/en/Publications (Accessed: February 21 2025). [Google Scholar] [Crossref]
8. Baer, K. & Le Borgne, E. (2018). Tax administration reforms in the digital age: Experience from Estonia. IMF Working Paper No. 18/50. [Google Scholar] [Crossref]
9. Bannister, F. and Connolly, R., 2012. Defining e‐government: A review of research. Government Information Quarterly, 29(1), pp.1–10. [Google Scholar] [Crossref]
10. Bhatti, M., Hassan, S. & Kazmi, S. (2020). The Impact of Digital Payment Systems on Tax Compliance in Pakistan. Journal of Public Administration and Governance, 10(4), pp.11–28. [Google Scholar] [Crossref]
11. Bird, R. & Zolt, E. (2015). 'Tax Policy in Developing Countries', Journal of Economic Perspectives, 17(4), pp. 99–120. Available at: https://www.aeaweb.org/articles (Accessed: February 21 2025). [Google Scholar] [Crossref]
12. Bird, R.M. and Vaillancourt, F., 2008. Fiscal decentralisation in developing countries. Cambridge: Cambridge University Press. [Google Scholar] [Crossref]
13. Bird, R.M. and Zolt, E.M. (2015) 'Taxation and Inequality in Developing Countries: Lessons from the Recent Experience', UCLA Law Review, 59(6), pp. 1385-1465. Available at: https://www.uclalawreview.org/taxation-and-inequality-in-developing-countries-lessons-from-the-recent-experience/ (Accessed: February 21 2025). [Google Scholar] [Crossref]
14. Bird, R.M. and Zolt, E.M., 2005. Redistribution via taxation: The limited role of the personal income tax in developing countries. UCLA Law Review, 52, pp.1627–1695. [Google Scholar] [Crossref]
15. Bird, R.M. and Zolt, E.M., 2015. Taxation and development: The weakest link? In: Sanjeev Gupta, Michael Keen, Alpa Shah and Genevieve Verdier, eds. Financing Development: Issues and Options. Washington, DC: IMF. [Google Scholar] [Crossref]
16. Bird, R.M., 2010. Smart tax administration. Economic Premise, (36), pp.1–7. [Google Scholar] [Crossref]
17. Conteh, M. & Mansaray, B. (2024). Evaluating automated tax audits in Sierra Leone. African Journal of Public Sector Innovation, 3(1), pp.47–61. [Google Scholar] [Crossref]
18. Davis, F.D. (1989). 'Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology', MIS Quarterly, 13(3), pp. 319–340. Available at: https://www.jstor.org/stable/249008 (Accessed: February 21 2025). [Google Scholar] [Crossref]
19. Eissa, N. & Zeitlin, A. (2014). 'Using Mobile Technology to Improve Tax Compliance and Facilitate Payment in Rwanda', International Growth Centre. Available at: https://www.theigc.org/project/using-mobile-technology-to-improve-tax-compliance-and-facilitate-payment-in-rwanda/ (Accessed: February 21 2025). [Google Scholar] [Crossref]
20. Fischer, C.M., Wartick, M. & Mark, M.M. (1992). 'Detection Probability and Taxpayer Compliance: A Review of the Literature', Journal of Accounting Literature, 11, pp. 1–46. Available at: https://www.tandfonline.com/doi/abs/10.1080/07366989200000001 (Accessed: February 11 2025). [Google Scholar] [Crossref]
21. Fjeldstad, O.H. and Heggstad, K., 2012. Building taxpayer culture in Mozambique, Tanzania and Zambia: Achievements, challenges and policy recommendations. CMI Report No. 3. Bergen: Chr. Michelsen Institute. [Google Scholar] [Crossref]
22. Fjeldstad, O.H. and Heggstad, K., 2012. Local government revenue mobilisation in Anglophone Africa. ICTD Working Paper 7. [Google Scholar] [Crossref]
23. Fofanah, J. & Kargbo, I. (2023). Digital Literacy and Tax Compliance: A Study of SME Operators in Sierra Leone. Sierra Leone Economic Review, 12(2), pp.115–134. [Google Scholar] [Crossref]
24. Gupta, A., 2007. Determinants of tax revenue: A cross-country analysis. IMF Working Paper WP/07/184. [Google Scholar] [Crossref]
25. Hassan, S. & Latif, M. (2020). 'The impact of digital payment systems on tax compliance in Pakistan', Journal of Financial Technology and Taxation, 15(2), pp. 87–103. Available at: https://journals.sagepub.com (Accessed: February 21 2025). [Google Scholar] [Crossref]
26. Heeks, R. (2017). 'Information and Communication Technology for Development (ICT4D)', Routledge. Available at: https://www.routledge.com/Information-and-Communication-Technology-for-Development-ICT4D/Heeks/p/book/9781138101814 (Accessed: February 16 2025). [Google Scholar] [Crossref]
27. Heeks, R., 2020. Information and communication technology for development (ICT4D). London: Routledge. [Google Scholar] [Crossref]
28. IMF (2020). Sierra Leone Selected Issues. IMF Country Report No. 20/46. Washington, DC: International Monetary Fund. [Google Scholar] [Crossref]
29. IMF, 2019. Fiscal Monitor: Government for the People. Washington, D.C.: International Monetary Fund. [Google Scholar] [Crossref]
30. IMF, 2020. The Promise of Fintech: Financial Inclusion in the Post-COVID-19 Era. Washington, D.C.: International Monetary Fund. [Google Scholar] [Crossref]
31. IMF. (2024). Sierra Leone: Selected Issues. Retrieved from https://www.elibrary.imf.org/view/journals/002/2024/322/article-A001-en.xml [Google Scholar] [Crossref]
32. International Centre for Tax and Development (ICTD) (2024) 'Does Information about Public Services Boost Tax Compliance? I Conducted an Experiment in Freetown to Find Out. Available at: https://www.ictd.ac/blog/does-information-about-public-services-boost-tax-compliance-i-conducted-an-experiment-in-freetown-to-find-out/ (Accessed: February 12 2025). [Google Scholar] [Crossref]
33. Jalloh, A. & Kamara, H. (2022). Mobile Money and Tax Compliance in Sierra Leone. African Journal of Development Studies, 9(3), pp.214–229. [Google Scholar] [Crossref]
34. Joshi, A. (2021). Digital Tax Transformation in Sub-Saharan Africa. ICTD Working Paper 137. Brighton: Institute of Development Studies. [Google Scholar] [Crossref]
35. Joshi, A. (2021). 'Digital transformation of tax systems in sub-Saharan Africa: Opportunities and challenges', African Tax Review Journal, 8(1), pp. 45–63. Available at: https://www.africantaxreview.org (Accessed: February 21 2025). [Google Scholar] [Crossref]
36. Joshi, A. (2021). 'Digitalisation and Domestic Revenue Mobilisation in Developing Countries: Issues and Options', United Nations University World Institute for Development Economics Research (UNU-WIDER). Available at: https://www.wider.unu.edu/publication/digitalization-and-domestic-revenue-mobilization-developing-countries (Accessed: February 21 2025). [Google Scholar] [Crossref]
37. Jusu, T. & Massaquoi, P. (2024). Barriers to E-Governance in Sierra Leone: Infrastructure, Trust, and Inclusion. Journal of African Governance and Policy Innovation, 7(1), pp.85–102. [Google Scholar] [Crossref]
38. Kamara, A. and Kamara, F., 2023. Evaluating the effectiveness of ITAS and ECR in promoting tax compliance in Sierra Leone. Journal of Tax Policy and Administration, 5(2), pp.45–67. [Google Scholar] [Crossref]
39. Kamara, A. and Kamara, F., 2023. Evaluating the effectiveness of ITAS and ECR in promoting tax compliance in Sierra Leone. Freetown: Journal of Tax Policy and Administration. [Google Scholar] [Crossref]
40. Kamara, A. K., & Kamara, S. (2023). Exploring the Implementation and Benefit of Digital Reforms in Tax Administration: National Revenue Authority (NRA) Sierra Leone. Open Access Library Journal, 10, e9767. https://www.scirp.org/journal/paperinformation?paperid=123214 [Google Scholar] [Crossref]
41. Krause-Jackson, F., 2020. Digital tax transformation in Africa. Bloomberg Economics, 12 March. [Google Scholar] [Crossref]
42. Loo, E.C., Evans, C. and McKerchar, M., (2017). Challenges in Understanding the Compliance Behaviour of E-Tax Users. eJournal of Tax Research, 15(2), pp.416–433. [Google Scholar] [Crossref]
43. Loo, E.C., McKerchar, M. & Hansford, A. (2017). 'E-filing and tax compliance: The Malaysian experience', Australian Tax Forum, 32(1), pp. 45–62. Available at: https://www.austaxpolicy.com (Accessed: February 21 2025). [Google Scholar] [Crossref]
44. McKinsey & Company, 2019. The age of analytics: Competing in a data-driven world. McKinsey Global Institute. [Google Scholar] [Crossref]
45. Mendoza, J.P., Okunogbe, O. and Valderrama, D., (2017). The use of technology to improve tax compliance: Evidence from Chile. Policy Research Working Paper 8261, World Bank. [Google Scholar] [Crossref]
46. Mendoza, J.P., Wielhouwer, J.L. and Kirchler, E. (2017). 'The Impact of Deterrence and Tax Morale on Tax Compliance: Results from a Controlled Experiment in Colombia', International Journal of Business and Management, 12(2), pp. 1-14. Available at: https://www.ccsenet.org/journal/index.php/ijbm/article/view/65210 (Accessed: February 21 2025). [Google Scholar] [Crossref]
47. Mendoza, J.P., Wielhouwer, J.L. and Kirchler, E. (2017). 'The impact of electronic invoicing on tax compliance: Evidence from Chile', Journal of Public Economics, 157, pp. 1-20. Available at: https://www.sciencedirect.com (Accessed: February 21 2025). [Google Scholar] [Crossref]
48. Murphy, R., 2011. The cost of tax abuse: A briefing paper on the cost of tax evasion worldwide. Tax Justice Network. [Google Scholar] [Crossref]
49. Mwaura, M. & Omondi, A. (2022). The Effect of Mobile Tax Payment Systems on Tax Compliance in Kenya. Kenya Journal of Economic Policy, 11(1), pp.77–95. [Google Scholar] [Crossref]
50. National Revenue Authority (NRA) (2024). 'Exploring the Implementation and Benefit of Digital Reforms in Tax Administration: National Revenue Authority (NRA) Sierra Leone'. Available at: https://www.scirp.org/journal/paperinformation?paperid=123214 (Accessed: February 1 2025). [Google Scholar] [Crossref]
51. National Revenue Authority (NRA), 2004. NRA Strategic Plan 2004–2009. Freetown: NRA. [Google Scholar] [Crossref]
52. National Revenue Authority (NRA), 2020. Annual Performance Report 2019–2020. Freetown: NRA. [Google Scholar] [Crossref]
53. National Revenue Authority (NRA), 2021. Revenue Administration Review. Freetown: NRA. [Google Scholar] [Crossref]
54. National Revenue Authority. (2020). Full Digital Transformation: NRA Takes Concrete Steps To Boost Operations. https://www.nra.gov.sl/news/full-digital-transformation-nra-takes-concrete-steps-boost-operations [Google Scholar] [Crossref]
55. Odongo, K. & Waweru, N. (2020). The Influence of Electronic Tax Systems on Tax Compliance in Kenya. African Journal of Business Management, 14(7), pp.203–212. [Google Scholar] [Crossref]
56. Odongo, T. & Waweru, G. (2020). 'Effect of electronic tax filing system on tax compliance in Kenya', African Journal of Accounting and Taxation, 12(4), pp. 87–103. Available at: https://academicjournals.org/journal/AJAT (Accessed: February 21 2025). [Google Scholar] [Crossref]
57. OECD, 2019. Digital transformation of tax administration. Paris: OECD Publishing. [Google Scholar] [Crossref]
58. OECD, 2021. Tax Administration 2021: Comparative Information on OECD and other Advanced and Emerging Economies. Paris: OECD Publishing. [Google Scholar] [Crossref]
59. Okunogbe, O. & Pouliquen, V. (2022). 'Digital tax payments and compliance: Evidence from Uganda', World Bank Policy Research Working Paper, 9876, pp. 1–35. Available at: https://documents.worldbank.org (Accessed: February 2 2025). [Google Scholar] [Crossref]
60. Prichard et al. (2019). Prichard, W., Custers, A., Dom, R., Davenport, S. and Roscitt, M. (2019) 'Innovations in Tax Compliance: Conceptual Framework', World Bank Group. Available at: https://documents.worldbank.org/en/publication/documents-reports/documentdetail/617131554170918000/innovations-in-tax-compliance-conceptual-framework (Accessed: February 21 2025). [Google Scholar] [Crossref]
61. Prichard, W., Cobham, A. & Goodall, A. (2019). 'The role of infrastructure in tax compliance: Evidence from sub-Saharan Africa', Development Policy Review, 37(3), pp. 345–364. Available at: https://onlinelibrary.wiley.com (Accessed: February 21 2025). [Google Scholar] [Crossref]
62. Prichard, W., Cobham, A. and Goodall, A., (2019). The ICTD Government Revenue Dataset. ICTD Working Paper 19. Brighton: Institute of Development Studies. [Google Scholar] [Crossref]
63. Sesay, A. & Turay, J. (2023). Early Evaluation of NRA's E-filing System in Sierra Leone. West Africa Public Administration Review, 5(2), pp.61–79. [Google Scholar] [Crossref]
64. Slemrod, J. (2019). 'Tax Compliance and Enforcement', Journal of Economic Literature, 57(4), pp. 904-954. Available at: https://www.aeaweb.org/articles?id=10.1257/jel.20181437 (Accessed: February 21 2025). [Google Scholar] [Crossref]
65. Tapscott, D. and Tapscott, A., 2016. Blockchain revolution: How the technology behind bitcoin is changing money, business, and the world. New York: Penguin. [Google Scholar] [Crossref]
66. Torgler, B. (2016). 'Tax Compliance and Tax Morale: A Theoretical and Empirical Analysis', Edward Elgar Publishing. Available at: https://www.e-elgar.com/shop/gbp/tax-compliance-and-tax-morale-9781845427224.html (Accessed: February 21 2025). [Google Scholar] [Crossref]
67. Torgler, B., 2005. Tax morale in Latin America. Public Choice, 122(1), pp.133–157. [Google Scholar] [Crossref]
68. Torgler, B., 2007. Tax compliance and tax morale: A theoretical and empirical analysis. Cheltenham: Edward Elgar Publishing. [Google Scholar] [Crossref]
69. UNCTAD, 2020. ASYCUDA Programme Annual Report. Geneva: United Nations. [Google Scholar] [Crossref]
70. United Nations, 2022. E-Government Survey 2022: The Future of Digital Government. New York: United Nations. [Google Scholar] [Crossref]
71. Uwayezu, E. & Twesige, D. (2019). Adoption of E-filing Tax System and Tax Compliance by SMEs in Rwanda. International Journal of Business and Economic Sciences Applied Research, 12(2), pp.45–56. [Google Scholar] [Crossref]
72. Uwayezu, E. & Twesige, D. (2019). 'Impact of e-filing system on tax compliance among small and medium enterprises in Rwanda', Rwandan Journal of Economics and Finance, 6(1), pp. 77-98. Available at: https://rwandaneconomicsjournal.org (Accessed: February 21 2025). [Google Scholar] [Crossref]
73. World Bank (2021) Digital Governance and Tax Compliance in Sierra Leone. Washington, DC: World Bank. Available at: https://www.worldbank.org (Accessed: February 21 2025). [Google Scholar] [Crossref]
74. World Bank, 2003. Sierra Leone: Governance and public sector reform project appraisal. Washington, D.C.: World Bank. [Google Scholar] [Crossref]
75. World Bank, 2021. Cybersecurity for development: Strengthening the foundations. Washington, D.C.: World Bank. [Google Scholar] [Crossref]
76. World Bank, 2021. Digital Governance in Sierra Leone: Toward Inclusive and Transparent Service Delivery. Washington, DC: World Bank Group. [Google Scholar] [Crossref]
77. World Bank. (2007). Sierra Leone: Public Expenditure Review Update. Washington, DC: World Bank. [Google Scholar] [Crossref]
78. World Bank. (2023). Sierra Leone Tax System Review. Retrieved from https://documents1.worldbank.org/curated/en/099345012132139071/pdf/P1719830fa6a7b0f088c60e01b8a4b73e8.pdf [Google Scholar] [Crossref]