5.2018

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Browsing 5.2018 by Author "Kavala, Juliet Kamene"

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    Factors Affecting Tax Revenue Collection in Kenya Revenue Authority Nyeri
    (KESRA/JKUAT - Unpublished research project, 2018) Kavala, Juliet Kamene
    This study was conducted to analyze the status of tax revenue collection in Kenya. The study was guided by the following objectives: To determine the influence of tax administration on tax revenue collection, how corruption affects tax revenue collection, assess the extent to which tax evasion influence tax revenue collection, to establish the influence of tax exemptions on tax revenue collection in KRA, Nyeri. The findings of this study will help the government to institute the necessary legislative and administrative measures to enhance tax compliance in cases of voluntary compliance and enforce compliance in cases of non-compliance. It will be of help to practitioners since it will help them understand the various challenges faced by taxpayers towards voluntary compliance and help them advise their clients accordingly. The study will also be of importance to the general public since it will highlight various challenges faced by the taxpayers towards compliance and the possible solutions to these challenges. To other researchers the survey will be a basis for further research, more so, when seeking to research on enhancing revenue collection through other systems that either supplement or substitute self-assessment system. The study adopted a descriptive survey design. The target population was managers, supervisors and officer’s staffs of Kenya Revenue Authority. The target had the required information on Tax revenue collection. The total targeted population was 48 employees. The researcher used primary data obtained by the use of questionnaire. The data obtained was analyzed using statistical package for social science (SPSS) version 20. Descriptive statistics in form of frequency counts and percentages were used for analysis. The findings of the study showed that there was a significant relationship between the factors of Tax administration, corruption, tax evasion and tax revenue collection. Tax administration increases the tax revenue collection level of KRA, Nyeri and can be used to enhance tax collection. The findings reported in this study suggest that corruption has an impact on the tax revenue collection with regards to their jobs. The existing control system of officials’ assets is bureaucratic and inefficient. Moreover, a relevant formal request for assets data could be answered after several months. So, there is need for a new system of officials’ assets control. The need for changes to be done in the organizational structure of tax administration’s services was strongly appeared in the survey. The current organizational structure and the way of working is rather outdated and does not meet the modern needs. The existing institutional control in KRA, under the name of Economic Inspection, reflects the attitude toward the phenomenon. But this service does not have sufficient stuff, while also responsible for financial audits of Municipalities, Universities, Foundations, etc. which distract Economic Inspection from its main task, that the audit of the tax administration and the fight of existing corruption. In addition, the staff lacks the appropriate training in auditing and inspection methods, while there is a great shortage of the basic facilities. From the study findings, there is a high correlation between tax evasion and tax revenue collection. However, the punishment system for those who are found to have evaded tax is not effective. Disciplinary Committees, which are responsible for attributing categories, have been accused of being too lenient. Furthermore, the judges who will impose the penalties may themselves be accessible to corruption or may have political biases, so that may be bought by the accused or may put obstacles to the proceedings.