Effects of technology adoption on vat and excise duty compliance in Kenya
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Date
01-10-18
Authors
Bifwoli, Chrisantus Barasa
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
In the current world, technology adoption is very important and is one of the key elements to the success of most economies in terms of quality delivery of products and services, operations and the provision of services. Therefore, most organizations are trying to take advantage of the increasing technological adoption to counter the ever increasing competition from other organizations. In Kenya, as an example of a growing economy, organizations such as the Kenya Revenue Authority (KRA) has shown tremendous growth in revenue collection because that have been enabled by the adoption of advanced technology. This research paper presents the current trend of which KRA is trying to adopt advanced technologies in its activities so as to improve its services to Taxpayers and generate revenue for the Government of Kenya. This research also proved that the adoption of new technologies by KRA has shown significant changes over the period of time in the quality of services delivered and the amount of revenues collected. The clarifications and data analysis of how KRA uses Information technology in their operations was well illustrated in the literature review and the observations. Three variables was applied in the implementations of Information technology that is used in this research paper. The three variables include; -The degree of which the new technologies are being adopted -The degree of utilization of these technologies -The changes that the technologies have brought to the Kenya Revenue Authority in revenue growth. During the study, the participants were assured of confidentiality and anonymity of the information they provided. Informed consent was obtained from them. The high response rate was obtained in this study by giving enough time to participants to fill the questionnaires and personal visits made by the researcher on follow up calls to the participants. The objectives of the research was; to assess the effect of itax down times on VAT and Excise tax compliance, to investigate the effect of technological coverage on VAT and Excise tax compliance and to evaluate the effect of cost of technology on VAT and Excise tax compliances. The study was conducted in Nairobi in the main offices of the Kenya Revenue Authority, Domestic Taxes Department Large taxpayer office. Most of the direct questions were directed to the compliance and recruitment officers with over 5 years working experience, the tax agents and newly Vat/Excise registered taxpayer into the K.R.A systems. The sample frame for this study was drawn from compliance and recruitment officers of KRA’s Domestic Taxes Department- Large Taxpayers Office. Email lists were used as a sampling frame to obtain the names of Tax agents and new taxpayers that are being introduced into the KRA system. Sample and Sampling Technique, the participants were equally distributed to the various KRA Domestic Taxes Department-LTO section, compliance and recruitment programs and new taxpayers in this area of study. Each participant was expected to have at least a sample of 5 respondents. The sampling procedure was not discriminate on matters such as gender and race. This study was based mainly on primary research and therefore the most appropriate instrument to collect data for the study was questionnaires. This is because questionnaires are considered more reliable compared to other methods and also provides references with very little alterations (Cooper & Schindler, 2001). Some questionnaires were hand delivered while others were filled online as some of the respondents were not available at that time but only accessed through emails. Secondary data was administered through examining the previous statistical records relating VAT and Excise recruitment and revenue growth associated with technology adoptions over the specific period of time. Data collection procedure, in order to ensure validity and reliability of the research, the questionnaires were constructed carefully with no ambiguity. This helped to facilitate answers to all research questions presented. The questionnaires were pre-tested through a pilot study after which corrections and adjustments was made, which ensured reliability. These results was not be included in the study, but the time that the participants will took to complete the questionnaires was noted and informal feedback obtained. Data Processing and Analysis, the quantitative data collected was analyzed using the basic analysis procedures such as tabulating which is the best method when it comes to the comparison of figures. The qualitative data was analyzed using conceptual content analysis because it is the best analysis method for qualitative data. The data analyzed was presented in bar graphs for the quantitative data and pie charts for the qualitative data. Tables and figures and suitable illustrations were also used.
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Keywords
Technology, VAT, Excise duty