Effect of tax audit on excise duty collection in Kenya: Case study of Nairobi Region
Date
2019
Authors
Ogutu, Michael Okinyi
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
This study established the effects of the tax audit on excise duty tax in Nairobi, the study was guided by the following specific objectives: to determine the effect of tax audit on excise duty collection in Kenya, to determine the effect of the field audit on excise duty collection in Kenya and to determine the effectiveness of the desk audit on excise duty collection in Kenya. Review of current literature and sources related to the influence of excise tax audit on Excise duty collection in the Nairobi region. This included theoretical reviews, the empirical literature on the focus of past studies, and critical assessment of the gaps in the literature was identified. An effective conceptual framework was also outlined and all variables were conceptualized on the basis of the study objectives. Chapter three outlines the research methodology used in this study on the effects of the tax audit on the collection of excise duties in Kenya. The research covered the following research designs, target population, sampling frameworks, sampling and sampling techniques, data collection instruments, data collection tools and procedures and data collection tools and data. Chapter four addressed the analysis and interpretation of research findings on the impact of tax audits on excise duty collection. To determine the significance level, descriptive statistics and regression analysis were used. The study was conducted over a period of 5 years in which secondary data were used in the analysis for the period 2013 to 2018.The research study used to analyze of regression. The study found that the tax audit had a positive effect on the collection of excise duty. This can be demonstrated by the different figures shown which was the collection of excise duty within 5 years. This further implied that an increase in the excise duty collection was imperative when the Kenya Revenue Authority revamps the tax audit, especially in excisable goods and services. The study revealed that there was tax audit had an effect of 71.8 percent of the collection of excise duty. The study further revealed that the study variables had a strong positive relationship.
Description
Keywords
Audit, Excise duty