ROLE OF TAX INTELLIGENCE IN REVENUE COLLECTION BY KENYA REVENUE AUTHORITY IN MOMBASA COUNTY
Abstract
The study sought to establish the role of tax intelligence in revenue collection by Kenya Revenue Authority in Mombasa County. The study adopted descriptive research design and a structured questionnaire to collect primary data. The target population was 588 Kenya Revenue Authority employees in Southern Region headquarters as detailed in Kenya Revenue Authority human resource database. A sample size of 238 was derived using Yamane formula. The findings of the study would be of vital significance to Kenya Revenue Authority, taxpayers and the academic network by providing them with an oversight of role of tax intelligence in revenue collection by Kenya Revenue Authority in Kenya. Based on the findings, it was evident that there is a significant relationship between tax intelligence collection, tax intelligence operations and data-intelligent strategy and revenue collection by Kenya Revenue Authority in Mombasa County. Correlations analysis results indicated a positive relationship between tax intelligence and revenue collection. In conclusion, the study established that tax intelligence is applied by KRA through making use of some renowned techniques associated to the task, in the course of investigations conducted by the tax intelligence staff. The study recommended that KRA management should allocate more financial resources to enable recruitment of more intelligence officers. The study also recommended that the government should allocate the organization with sufficient operation funds in order to expand intelligence operations in the country. Additionally, the study recommended regular training of intelligence officers and adequate consideration for intelligence reports by the management. Finally, the tax intelligence department should develop an Intelligence Management System, preferably in a computerized format and integrated in a network to allow for intelligence collection, analysis and dissemination and feedback management. There is need to conduct further research which may be extended in details to other variables. A repetition of this study should be conducted using a larger sample size, with inclusion of more variables and application of more robust set of statistical tools apart from those used in this study which could increase the robustness of study models and hence the validity of the results.
Key Words: Tax Intelligence Collection, Data-Intelligent Strategy, Tax Intelligence Operations, Revenue Collection, KRA
CITATION: Kiprotich, J., & Mumia, B. J. (2021). Role of tax intelligence in revenue collection by Kenya Revenue Authority in Mombasa County. The Strategic Journal of Business & Change Management, 8 (2), 139 – 157.
Full Text:
PDFReferences
Achieng’, M. O. (2014). Print Media Reporting of Taxation Issues in Kenya. Nairobi: University of Nairobi.
Adebolu, A. S. (2018). Forensic Accounting and Tax Evasion in Nigeria. Journal of Taxation and Economic Development, 17(1), 131-141.
Appah, E. (2016). Tax Compliance Intentions and the Behaviour of the Individual. Research Journal of Finance and Accounting, 7(13), 213-221. doi:31809-34686-1-PB%20
Atawodi, O. W., & Ojeka, S. A. (2012). Factors that affect tax compliance among small and medium enterprises in North Central Nigeria. International Journal of Business and Management, 7(12), 87.
Braam, M. (2019, October 1). Dutch Tax and Customs Administration speeds delivery by 3X while transforming long-established culture. Retrieved from Dutch Tax and Customs Administration: https://www.scaledagileframework.com/case-study-dutch-tax-and-customs-administration/
Bryman, A., & Bell, E. (2015). Business Research Methods. Oxford: Oxford University Press.
Buyondo, D. (2019). Why Uganda’s Financial Intelligence Authority is failing. Kampala: New Vision Publishers.
Chan, L. L., & Idris, N. (2017). Validity and Reliability of The Instrument Using Exploratory Factor Analysis and Cronbach’s alpha. International Journal of Academic Research in Business and Social Sciences, 7(10), 400-405. doi:10.6007/IJARBSS/v7-i10/3387
Chava, F. (2019). Research Method in the Social Science (8th ed.). London: St. Matron’s Press Inc.
CIAT. (2018). Manual CIAT on Tax Intelligence. Paris: CIAT Publishers.
Cooper, D., & Schindler, P. (2014). Business Research Methods (12th ed.). New York: McGraw-Hill.
Deloitte. (2019, October 1). Artificial Intelligence–Entering the world of tax. Amsterdam, Utrecht, Netherlands.
Edwards, J. (2019). What Is Predictive Analytics? Transforming Data into Future Insights. Massachusetts: IDG Communications Inc. Publishers.
Fort, D. (2019). 2019 IRS Criminal Investigation Annual Report. New York: IRS Publishers.
Gatheru, M. S. (2018). The Effect of Strategic Management Practices on Reduction of Revenue Collection at Domestic Taxes Department at the Kenya Revenue Authority. Kenyatta University, Department of Business Administration. Nairobi: KU Press.
Gitaru, K. (2017). The Effect of Taxpayer Education on Tax Compliance in Kenya. (A case study of SME’s in Nairobi Central Business District). Nairobi: UTC Publishers.
Gitaru, R. (2019). Impact of intelligence gathering system on revenue generation by Kenya Revenue Authority. Mombasa: Unpublished MBA Thesis.
Kenya Revenue Authority. (2019). Seventh Corporate Plan 2018/19 - 2020/21. Nairobi: Government of Kenya Press.
Kiarie, W. (2018). Effects of Technology on Customs Performance at the Port of Mombasa. Mombasa: Jomo Kenyatta University of Agriculture and Technology Press.
Kioko, S. (2019). The Impact of Strategic Management Practices on Custom Tax Collection at the Kenya Ports Authority, Mombasa. Mombasa: Unpublished.
Kiring’a, S. E., & Jagongo, A. (2017). Impact of Online Tax Filing on Tax Compliance among Small and Medium Enterprises in Kibwezi Sub-County, Kenya. International Journal of Current Research, 9(1), 196-206.
Klein, L. L., & Pereira, B. A. (2018). The Survival of Inter-organizational Networks: A Proposal Based on Resource Dependence Theory. New York : Troutman Sanders Publishes.
Kodila-Tedik, O., & Mutascu, M. (2015). Tax Revenues and Intelligence :A Cross-Sectional Evidence. University of Kinshasa. Kinshasa: University of Kinshasa Press.
Kothari, C. R. (2014). Research methodology: Methods and Techniques,Third Edition. New Delhi: New Age International Publishers.
KRA. (2019). Seventh Corporate Plan 2018/19 - 2020/21. Nairobi: Government of Kenya Press.
Leary, M. R. (2015). Introduction to behavioral research methods. (5th ed.). Boston: Allyn & Bacon Publishers.
Macharia, B. (2014). Factors Influencing Adoption of Value Added Tax in Social Commerce in Kenya; A Case of Kenya Revenue Authority. Nairobi: United States International University Press.
Mahmoud, O. (2019). Applying Porter’s Theory in Competitive Advantage of Nations (Case of Palestine). Al-Quds University . Al-Quds: Al-Quds University Press.
Maina, J. (2019). Impact of Tax Intelligence Operations on Efficiency of Revenue Collection at Domestic Taxes Department at Kenya Revenue Authority. University of Nairobi. Nairobi: UON Press.
McDowl, B. (2017). Resource Dependency Theory: How External Resources Affect Organizational Behavior. Retrieved from https://study.com/academy/lesson/resource-dependency-theory-how-external-resources-affect-organizational-behavior.html
Modugu, K. P., & Anyaduba, .. J. (2020). Forensic Accounting and Financial Fraud in Nigeria: An Empirical Approach. International Journal of Business and Social Science, 4(7), 281-290.
Mustafa, A. (2017). Research Methodology (4th ed.). New-Delhi : A.I.T.B.S Publishers.
Neuman, W. L. (2014). Social Research Methods: Qualitative and Quantitative Approaches (7th ed.). London: Pearson Education Limited.
Nishimwe, E. (2019). The Effect of Data-Intelligent Strategy in Revenue Collection by Rwanda Revenue Authority. Nairobi: Unpublished.
Njenga, S. G., Waiganjo, M., & Koima, J. (2015). Effect of Workplace Environment on the Performance of Commercial Banks Employees in Nakuru Town. International Journal of Managerial Studies and Research, 3(12), 76-89.
Odongo, R. O. (2016). Effects of Electronic Tax Filing Systems on Compliance amongst Small and Medium Enterprises within Mombasa Central Business District. University of Nairobi, Department of Finance and Accounting. Nairobi: UON Press.
OECD. (2016). Advanced Analytics for Better Tax Administration. Geneva: OECD Publishers.
Ogola, P. (2018). Strategic Internal Factors Affecting Customs Revenue Collection in Kenya Revenue Authority at the Port of Mombasa. Mombasa: Unpublished .
Olaleye, M. O. (2016). Effect of Tax Incentives on Foreign Direct Investment in Listed Nigerian Manufacturing Companies. Jomo Kenyatta University of Agriculture and Technology Press.
Omondi, F. (2013). Value Added Tax Reforms and Revenue Productivity in Kenya (1990 – 2010). Nairobi: University of Nairobi Press.
Osebe, P. R. (2013). An Analysis of Factors Affecting Tax Compliance in the Real Estate Sector in Kenya. Nakuru: Kabarak University Press.
Owens, J. (2020). Taxation in a Global Environment. Geneva: OECD Publishers.
Plance, A. (2019). The Effect of Strategic Management Practices on Performance of Savings and Loans Companies in Kumasi. Kumasi: Kwame Nkuruma University Press.
Preimesberger, C. (2018, November 26). What Exactly is Data Intelligence, and How Can Enterprises Use It? Retrieved from eWEEK DATA POINTS: https://www.eweek.com/innovation/what-exactly-is-data-intelligence-and-how-can-enterprises-use-it
Salie, F. (2020). Tax investigators to crack down on fraud, evasion to boost revenue – SA Treasury. Pretoria: BK Publishing .
SARS. (2019). SARS Achieves 30 Fraud Convictions Involving R65 Million In 6 months. Johannesburg: SARS Publishers.
Sasaka, P. S. (2016). Effect of Strategic Management Practices on the Performance of Corporate Social Responsibility of State Parastatals in Kenya. Nairobi: JKUAT Press.
Shah, P., & Shah, K. (2020, April 01). Theories of Motivation. Mumbai, Maharashtra, Western Peninsular. Retrieved from www.laynetworks.com/Theories-of-Motivation
Simiyu, K., & Jagongo, A. (2017). Impact of Online Tax Filing on Tax Compliance Among Small and Medium Enterprises in Kibwezi Sub-County . International Journal of Current Research, 9(1), 146-170.
Storm, A., & Coetzee, K. (2018). Towards Improving South Africa’s Legislation on Tax Evasion: A Comparison of Legislation on Tax Evasion of the USA, UK, Australia and South Africa. The Journal of Applied Business Research, 34(1), 151-168.
Tefera, B. (2014). The Impact of Extrinsic Motivation on Employee Performance: The Case of Development Bank of Ethiopia. Addis Ababa: Birhanena Selam Printing Press.
Waiyaki, E. W. (2017). Effect of Motivation on Employee Performance: A Case of Pam Golding Properties Limited, Nairobi . Nairobi: USIU Press.
Wallace, M. (2019). What do you think Artificial Intelligence is? New Jersey: Garden State Publishers.
Waso, D. (2014). The Effect of Online Tax System on Tax Compliance Among Small Taxpayers in East of Nairobi Tax District. University of Nairobi. Nairobi: University of Nairobi.
Zaraket, W., & Saber, F. (2017). The Impact of Financial Reward on Job Satisfaction and Performance: Implications for Blue Collar Employees. Journal of China-USA Business Review, 16(8), 369-378. doi:10.17265/1537-1514/2017.08.003
DOI: http://dx.doi.org/10.61426/sjbcm.v8i2.1977
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.