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Browsing Research Projects by Subject "Alternative Dispute Resolution"

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    Effect of Alternative Dispute Resolution on Tax Revenue Collection in Kenya
    (Kenya School of Revenue Administration_Moi University, 2021) Kinyua, Linet Njeri
    The Kenya Revenue Authority has been facing challenges in meeting tax revenue collection targets. This is a clear indication that there is a serious problem. The study aimed at investigating the effect of alternative dispute resolution on tax revenue collection in Kenya. The study was guided by the following specific objectives; to assess the effect of arbitration and mediation on tax revenue collection; to evaluate the effect of litigation on tax revenue collection; and to determine the effect of negotiation on tax revenue collection. The study is supported by the conflict resolution theory, optimal tax theory, ability-to-pay taxation theory, benefit theory of taxation, and expediency theory of taxation. The study adopted an explanatory research design and targeted 874 taxpayers who had adopted alternative dispute resolution for the last 2 years. A sample of 274 taxpayers was selected using random sampling technique. Descriptive and inferential analysis were adopted. The descriptive statistics included percentage, mean and standard. Inferential statistics included correlation and regression analysis. F test, beta coefficients, t value and p value were used as test statistics. The study findings showed that there was a positive and significant relationship between arbitration and mediation and tax revenue collection (β=0.321, p=0.000). Findings also showed that there was a positive and significant relationship between litigation and tax revenue collection (β=0.304, p=0.000). In addition, results showed that there was a positive and significant relationship between negotiation and tax revenue collection (β=0.383, p=0.000). The study also concluded that negotiation was commonly used as dispute resolution mechanism between taxpayers and Kenya Revenue Authority officials. Facilitators and tax experts should be updated on current trends of mediation, effectiveness and transparency of the process. Further, Kenya Revenue Authority should invest in sensitizing taxpayers regarding the alternative dispute resolution process, and in embedding the requisite skills, motivation and resources in them to use the alternative dispute resolution process effectively. The government of Kenya should form a section in the constitution to empower Kenya Revenue Authority to settle a tax dispute on a compromise basis where it is in the best interest of the state.
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    Effect of Tax Dispute Resolution on Tax Administration in Kenya Revenue Authority Malindi Town
    (KESRA/JKUAT - Unpublished research project, 2020) Tsumah, Naomi Mbeyu ; Mumia Benn MINCU, CPA.K
    According to most scholars, the prevailing tax disputes systems does not meet all the principles of Dispute System Design, including the most critical one of reconciling parties’ interest thus resulting to higher transaction costs, frequent recurrence of tax disputes and greater dissatisfaction with outcomes. It was in the backdrop of this problem, that the researcher sought to establish the effect of tax dispute resolution on tax administration in KRA Malindi. The study was guided by the following objectives: To examine the effect of internal tax review on the tax administration in KRA Malindi, to determine the effect of tax appeal tribunals on the tax administration in KRA Malindi and to establish the effect of alternative dispute resolution on the tax administration in KRA Malindi. The study was conducted in Malindi TSO as per the three objectives. To provide the basis of the study assumptions, the study relied on the following theories: social interest theory, theory of pain and pleasure and conflict management model. The study adopted cross- sectional survey design using both quantitative and qualitative approaches, where 63 employees from various departments in the KRA office were targeted, a sample of 55 employees was used as the study and the sample size was determined using Slovin’s formula. Sampling technique adopted is simple random technique. Data was collected using both primary and secondary data. For primary data, open ended and close ended questionnaires were used and secondary data was collected from libraries, internet and research from other scholars. The study used SPSS for data analysis, where inferential and descriptive statistics were conducted. The researcher distributed 55 questionnaires but only 43 questionnaires were returned, this represented a response rate of 78.18%. The analysis showed that relationship between internal tax review and tax administration, it was determined that (β=0.069; p=0.241). In addition, on the relationship between tax appeal tribunal and tax administration, the output showed that (β=0.243; p=0.039). Finally, on the relationship between alternative dispute resolution and tax administration, the analysis showed that (β=0.353; p=0.000). The study found out that tax appeal tribunal, internal tax review and alternative dispute resolution significantly affects tax administration but the alternative dispute resolution was the main contributor to tax administration. The study recommended that the KRA tax audits cases have to be reviewed by the independent panel review within the department who has no previous involvement with the audit or case work to review the technical merits of an audit position, before the matter is finalised.