TRANSFORMING TAX ACCOUNTING THROUGH AI AND BLOCKCHAIN: A GHANA STATE PERSPECTIVE

This study addresses the critical need for tax modernization in Ghana, where outdated manual systems continue to impede efficiency, transparency, and revenue mobilization-costing the country over GHS 3.2 billion annually in lost taxes. Motivated by this gap, the research evaluates how Artificial Intelligence (AI) and Blockchain technologies can transform Ghana’s tax accounting systems between 2019 and 2023. Using a descriptive design and secondary data from institutional records and empirical studies, the study employs Pearson correlation, chi-square, t-tests, and regression analyses to assess the impact of AI and Blockchain on accuracy, compliance, and revenue outcomes. Key findings reveal that AI adoption reduced audit time by 50%, tax filing error rates dropped from 15% to 6%, and revenue increased from GHS 20 to 25 billion, with a strong correlation coefficient of r = 0.91 between technology adoption and improved tax performance. Blockchain integration reduced fraud incidents from 120 to 50 and improved fraud detection from 45% to 80%, while smart contracts enhanced withholding tax accuracy from 78% to 92%. The regression model (R² = 0.87) further confirms that every 1% increase in AI and Blockchain usage corresponds to revenue increases of GHS 230 million and GHS 310 million, respectively. These results underscore the transformative synergy of AI and Blockchain in optimizing public finance systems. The study recommends policy reforms, expanded digital infrastructure, and targeted training to fast-track national adoption. This research offers a novel framework for emerging economies seeking to digitize tax systems effectively.