Effects of modern communication channels on taxpayer service experience in Kenya

by | Dec 18, 2020 | AMTJ, AMTJ 2020 I1

Effects of modern communication channels on taxpayer service experience in Kenya

Author: Fredricke Bryan Okello (fredricke.okello@kra.go.ke)

ISSN: 2709-8575
Affiliations: Senior Data Analyst
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 80-93
https://doi.org/10.47348/AMTJ/2021/i1a5

Abstract

The objective of this research study was to establish the effect of modern communication channels on taxpayer service experience in Kenya. This was answered using three research questions which revolved around social media, mobile communication and web portals and how each affected taxpayer service experience. The targeted population for the survey were all taxpayers in the Nairobi region who were registered as taxpayers in the iTax system and who form part of the country’s tax base. This comprised the total population for this study. To arrive at the sample for the survey, stratified random sampling was employed. The probit regression results from the analysis of the survey data show that the factors that significantly influence taxpayer service experience in Kenya are the individual’s age, gender, level of education, use of social media, mobile communication and web portals.

Does digitalisation improve the mobilisation of tax revenues in Africa?

by | Dec 18, 2020 | AMTJ, AMTJ 2020 I1

Does digitalisation improve the mobilisation of tax revenues in Africa?

Author: Docteur Akouété Paulin Bate (batepaulin@gmail.com)

ISSN: 2709-8575
Affiliations: Office Togolais des Recettes (OTR)
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 94-112
https://doi.org/10.47348/AMTJ/2021/i1a6

Abstract

The objective of this paper is to examine the effect of digitalisation on tax revenue mobilisation in Africa. Using panel data from 40 selected african countries over the period 1980-2017, econometric estimates were implemented using the generalised method of moments. Our results indicated that digitisation has both a positive and significant effect on tax revenue mobilisation in Africa over the study period. They also revealed that economic activity, level of education, financial and industrial development are the channels through which digitalisation affects tax revenue mobilisation in Africa. These results urged policy makers to further promote the digitalisation of African economies for better tax revenue mobilisation. Finally, this study encourages African states to formulate policies with a focus on the factors that should lead to economic growth, human capital formation, financial and industrial development.

Mitigating the cost impact of ICT system failures in tax agencies: lessons from Uganda

by | Dec 17, 2020 | AMTJ, AMTJ 2020 I1

Mitigating the cost impact of ICT system failures in tax agencies: lessons from Uganda

Author: Masembe Michael (masembey@gmail.com)

ISSN: 2709-8575
Affiliations: Team leader Tax Education; Uganda Revenue Authority
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 113-132
https://doi.org/10.47348/AMTJ/2021/i1a7

Abstract

Tax administrations that have adopted information and communication technology (ICT) face the challenge of system failures. Exhaustive literature exists on the causes and nature of such downtime or failures. This study investigated the cost of downtime in a tax administration, taking the case of the Uganda Revenue Authority (URA) as a case study, and reviewing and analysing system performance reports and interviews with staff on downtime. The study found that while automation enabled tax compliance, it was vulnerable to system downtime, which affected process efficiencies, reduced revenue yield, lowered staff productivity and raised ICT maintenance costs. Existing systems must therefore be continuously monitored with clear system performance levels in light of any future ICT hiccups. The study concluded by recommending alternative manual processes when ICT processes suffer downtime while prioritising compliance support systems uptime ( for example, payment systems) to other systems during downtime. Overall, the tax administrations must have a business continuity strategy with tested downtime safeguards.

The value-added tax refund problems in developing countries – case of Zimbabwe

by | Dec 17, 2020 | AMTJ, AMTJ 2020 I1

The value-added tax refund problems in developing countries – case of Zimbabwe

Author: Passionate Siwela (siwela.passionate@gmail.com)

ISSN: 2709-8575
Affiliations: Tax Auditor, Zimbabwe Revenue Authority
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 133-148
https://doi.org/10.47348/AMTJ/2021/i1a8

Abstract

Refund abuse is especially problematic when implementing value-added tax (VAT). Nevertheless, refunds must be paid promptly to ensure that VAT does not become a cost to business. There is therefore a need to strike a balance between procedures put in place to limit refund fraud opportunities and not causing refund delays. It is against this background that the study sought to investigate the refund processing system in Zimbabwe to highlight potential challenges faced by taxpayers and tax administrators. Evidence was collected by reviewing domestic legislation and other published literature, analysing the administration processes, including administering taxpayers and tax administrators surveys. The study found weaknesses in tax design and administration processes that created opportunities for refund fraud, fraudsters and tax planners taking advantage of the weak structures, taxpayers who fear pursuing their rights (as that will trigger a comprehensive audit), and a general unwillingness of the tax administration to invoke existing tax laws.

Civic pride and tax compliance in Kenya

by | Dec 17, 2020 | AMTJ, AMTJ 2020 I1

Civic pride and tax compliance in Kenya

Authors: Clement Otindo (Clement.otindo@kra.go.ke), Racheal Mbaire (Racheal.mbaire@kra.go.ke), Jane Kanina (Jane.kanina@kra.go.ke)

ISSN: 2709-8575
Affiliations: Research Economist
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 149-168
https://doi.org/10.47348/AMTJ/2021/i1a9

Abstract

Every government aspires to foster voluntary tax compliance; thus, the need to understand what citizens think about paying taxes other than taxes being a legal requirement. This paper analysed data collected through a nationwide survey on tax compliance. An ordered probit regression model was employed to examine the relationship between civic pride and tax compliance in Kenya. The findings indicated that tax compliance pertains to the relationship between individuals and the state. Individuals who are proud to be Kenyan and have faith in both the Kenya Revenue Authority (KRA) and the government depicted higher levels of compliance than those who were not proud and did not have faith in the institutions. Other factors that were found to significantly influence voluntary tax compliance in Kenya included age, gender, satisfaction with democracy, corruption in government and a fair tax system. Therefore, to improve voluntary tax compliance, the government and tax administration should adopt strategies aimed at increasing taxpayers’ confidence in the system. This include improved service delivery to the citizenry especially health and education, fair and equitable distribution of resources, fair treatment to all, eradication of corruption and having a fair tax system.

The determinants of the vat potential in Benin: an econometric analysis

by | Dec 17, 2020 | AMTJ, AMTJ 2020 I1

The determinants of the vat potential in Benin: an econometric analysis

Author: Tidjani Ousmaïla Awe Obinti (ismaelobinti@gmail.com)

ISSN: 2709-8575
Affiliations: Economètre-Chercheur à la Direction Générale des Impôts du Bénin
Source: African Multidisciplinary Tax Journal, 2021 Issue 1, p. 169-188
https://doi.org/10.47348/AMTJ/2021/i1a10

Abstract

This paper aimed to analyse the determinants of VAT potential in Benin over the period 1991 to 2017. The results of the estimation, conducted using Engle Granger’s cointegration model, showed that the latter is, on the whole, lower than the actual level of VAT collection over the period of analysis. This means that the VAT potential is relatively well developed, insofar as the tax capacity of the Beninese economy remains insufficient to mobilise more VAT revenue. However, this observation must be put into perspective as the capacity to mobilise VAT lost momentum from 2013 after a remarkable performance for over 23 years. This result calls for an improvement in tax reforms implemented in order to optimise the capacity of the tax administration in VAT mobilisation. Furthermore, the estimate showed that structural factors such as the degree of openness of the economy and the real gross domestic product per capita have had a positive and significant impact on VAT revenue mobilisation.