Effect of iTax System On Revenue Collection from Small Medium Enterprises (SME) In Kenya: A Case of Kiambu County
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Date
2018
Authors
Ngetich, Nicholas Kipyegon
Journal Title
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Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
iTax is a computing and accounting system for state revenues (levies, taxes) which stores all relevant (credit and debit) data in individual accounts in a data base, and thus helps monitor and control all tax transactions. It provides a convenient and efficient way to improve revenue collection, transparency in fiscal administration and management of local and national tax authorities. Taxpayers are given a personalized identification number which can be automated mostly by the tax authority to levy the processes and minimize the scope for tax fraud. The main objective of the study was to determine the effects of I-Tax systems on SME Revenue Collection in Kenya- a case of Kiambu County. Specific objectives include; to determine the effectiveness of the e-registration on revenue collection in Kenya Revenue Authority and to evaluate whether e-filling influence on revenue collection in Kenya Revenue Authority. The research adopted a descriptive study research design which determined the effects of I-Tax system on Revenue collection in Kenya. The case chosen for the study was Kenya Revenue Authority offices in Kiambu County-Thika station. Secondary data was used in the analysis and report. The study concludes that tax payer registration and Tax payer fillings overwhelmingly affected tax revenue collection of SMEs in Kiambu County. Therefore, the Electronic ITAX system has had a positive impact on Tax revenue collection in Kiambu County. The system has increased the number of registered tax payers aa well as it has increased the efficiency and speed of filling of returns. Based on the above conclusions we recommend continued training of Tax payer on filling of returns. KRA Kiambu County should hold consultative forums with its Tax payers. This will encourage voluntary tax registration and tax fillings. Eventually it will lead to increase in tax revenue collected
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Keywords
iTax