Effect of Post Clearance Audit on Customs Revenue Collection : a case of Customs Service Department in Mombasa Port Kenya
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Date
2020
Authors
Louis, Innocent Moruri
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Revenue collection relates to the actions of a government agency to collect from the public outstanding financial obligations. Revenue can come from a variety of sources such as taxes, fees for licenses, fines or the use of state facilities. It involves the process by which government raise revenue from its people. Generally taxes are either collected by the central government or the government can give license to an agent who can collect on its behalf. This study focused mainly on the effect of post-clearance audit on customs revenue collection and the effectiveness of different methods of revenue collection in Kenya. It looked at four specific objectives; determining the effect of selection of audit cases, establishing the effect of the field work, and determining the relationship between post audit standards and revenue collection. It was informed by three theories which are related to revenue and post clearance audit namely; the Policeman Theory, the Lending Credibility Theory, and Theory of Inspired Confidence. The target population of this study was 1076 clearing and forwarding officers and staff working in the customs service department in Mombasa. The study used both primary data by use of questionnaire and secondary data obtained from relevant materials which represent academic research. The research instrument for this research was a closed structure questionnaire. Quantitative data were gathered using questionnaires and they were processed using the SPSS version 22. Data were coded and entered into SPSS from which correlation analysis was used to evaluate the collected information. The finding of the study revealed that selection of audit, field work and post audit standards affects revenue collection and the study was statistically significant. The study recommends that on post audit standards KRA should put more emphasis through Post audit standard since it is an ineffective way to increase compliance. The study suggests the need for more research to find out why Kenya's traders are clearing up none-custom and increasing tax evasion activities.
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Keywords
Audit Standards, Offences, Compliance, AEO