DETERMINANTS OF SUCCESSFUL IMPLEMENTATION OF I-TAX SYSTEM AS A STRATEGY TO ENHANCE TAX COLLECTION IN KENYA
Abstract
The purpose of this study was to establish the determinants of i-tax system implementation as a strategy to enhance tax collection at Kenya Revenue Authority in Kenya. This study adopted a descriptive design and targeted a population of all KRA employees and tax payers in Nairobi focusing on employees directly involved with itax system implementation and tax payers. It employed simple random sampling to select 62 employees and 96 tax payers giving a total of 158 potential respondents. This study relied on primary data specifically a questionnaire that comprised of open and closed ended questionnaires. Descriptive statistics such as percentages, mean, frequency distribution and standard deviation were computed to describe the characteristics of the variables of interest while in inferential statistics, corelation, multiple regression analysis were used establish the nature and magnitude of the relationships between the variables and to test the hypothesized relationships. The results of data analysis were presented using figures, charts and tables for easy understanding and interpretation. The study findings indicated that resource availability, capacity building, monitoring and user technical skills were key determinants of itax system implementation. The study concluded that itax system implementation helped in revenue collection since it had automated all the tax processes and had been adopted fully by all taxpayers though there were cases of tax evasion. The study recommended that Kenya Revenue Authority should use effective measures to mobilize and motivate tax payers to register online for applicable tax heads in order to widen the tax base and enhancement revenue collection. The study concluded that the top management should support and improve on their involvement on itax system implementation to improve employees’ attitude and also provide the resources required for implementation process. There was need for the management of the organization to continue providing the necessary exposure to the employees in terms of trainings in application software to realize the importance or positive contribution it may have on the organization’s processes.
Key Words: Resource Availability, Capacity Building, Monitoring, User Technical Skills
CITATION: Mutisya, R. N., & Were, S. (2020). Determinants of successful implementation of i-tax system as a strategy to enhance tax collection in Kenya. The Strategic Journal of Business & Change Management, 7(4), 485 – 508.
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DOI: http://dx.doi.org/10.61426/sjbcm.v7i4.1800
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