IFRS adoption and tax revenue performance in Africa: does Africa need tax-targeted IFRS reforms?
Autor: | Yaw Ndori Queku, Baba Adibura Seidu, Thompson Aneyire Kubaje, Kwakye Boateng, Emmanuel Antwi-Agyei, Theophilus Apeku, Kenneth Yamoah |
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Jazyk: | angličtina |
Rok vydání: | 2023 |
Předmět: | |
Zdroj: | Cogent Business & Management, Vol 10, Iss 2 (2023) |
Druh dokumentu: | article |
ISSN: | 23311975 2331-1975 |
DOI: | 10.1080/23311975.2023.2212500 |
Popis: | AbstractThis paper examines the sensitivity of tax revenue performance to IFRS adoption in Africa and the implication for tax policy. The study investigated how IFRS adoption affects the level of tax revenue performance in Africa. This study is one of the foundational studies, which has investigated IFRS adoption and tax revenue performance at both macro and cross-country levels. This approach presents better inclusive evidence to support tax reforms and provides the basis to validate tax regulatory apprehensions and suspicions of the adverse impact of IFRS adoption. The paper uses data from six African countries: Botswana, Ghana, Namibia, Nigeria, Sierra Leone, and South Africa for the analyses. The data are sourced from World Bank, International Monetary Fund, and Organisation for Economic Co-operation and Development (OECD). Annualised data from 1996 to 2020 are used. The paper employs Pooled Mean Group (PMG) as the primary estimator and is validated by Panel Dynamic Ordinary Least Square (DOLS). The results showed that IFRS adoption could pose a significant risk to tax revenue mobilisation in Africa as evident by the significant negative long-run estimates. The results further revealed short-run positive IFRS effects. This is affirmed by the country-level analyses and trajectory of tax revenue performance across the sample periods of 1996 to 2020 for the selected countries during the pre- and post-IFRS era. It is therefore safe for African countries to pursue tax-targeted IFRS reforms to minimise the possible adverse effect of IFRS on tax revenue. |
Databáze: | Directory of Open Access Journals |
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