Internal Control Systems and Revenue Mobilization in Ghana’s MMDAs Moderating Role of Digital Tax Service

Abstract

The study examines how Internal Control Systems (ICS) influence Revenue Mobilization (RM) in Ghana’s MMDAs and evaluates how Digital Tax Services (DTS) strengthen this connection. The analysis draws on the COSO Framework to explain how ICS supports accountability and on the Technology Acceptance Model (TAM) to explain how DTS adoption enhances RM processes. A quantitative cross-sectional approach was used. Data were collected from staff and taxpayers across selected MMDAs through a structured questionnaire. A stratified sample of 467 respondents was used. Structural Equation Modelling (SEM) in SmartPLS 4 was used to assess the direct and moderating effects of ICS and DTS on RM. ICS has a strong, positive effect on RM in Ghana’s MMDAs. DTS also strengthens the ICS–RM relationship, indicating that internal controls deliver better revenue outcomes when supported by digital platforms. The design restricts long-term assessment of ICS and DTS effectiveness. Broader geographic coverage and longitudinal approaches may expand understanding of how ICS and digital systems support RM over time. MMDA administrators can improve RM by reinforcing ICS and ensuring that DTS tools are accessible and functional. Integrating control procedures with digital tax solutions can improve reporting accuracy and compliance monitoring. The study combines the COSO Framework and TAM to explain how control structures work better when supported by digital systems, presenting empirical evidence for DTS as a moderator in the ICS–RM relationship.