TAXPAYERS’ FINANCIAL STATEMENTS AUDIT AND ITS INFLUENCE ON REVENUE COLLECTION IN RWANDA. A CASE STUDY OF RWANDA REVENUE AUTHORITY (2015-2018)
Abstract
The study titled “Taxpayers’ financial statements audit and its influence on revenue collection in Rwanda. A case study of Rwanda revenue authority (2015-2018)”. Thus, study was based on the following specific objectives to assess the effect of record keeping audit on Revenue collection in Rwanda Revenue Authority, to examine the effect of field audit on Revenue collection in Rwanda Revenue Authority, to analyze the effect of Taxpayer’s registration check on revenue collection in Rwanda Revenue Authority, to investigate the effect of single-issue tax audit on revenue collection in Rwanda Revenue Authority and to assess the level of revenue collection growth in Rwanda Revenue Authority. The study used descriptive research design and correlational research design. The population of the study comprised of 138 employees of RRA in charge small, medium and large taxpayers at RRA. This study selected 103 employees of RRA as sample size by using stratified sampling techniques. The method of data collection was questionnaire and documentary review while method of data analysis was descriptive statistics, correlation analysis and multiple linear regression analysis. The findings revealed that there existed significance high and positive correlation between tax audit and tax revenue collection in Rwanda as correlation coefficient (r= .753, P-value=0.037 < 0.05). The findings revealed that record keeping audit(RKA), field audit(FA), tax registration check(TRC) and single issue tax audits(SITA) have positive and significant relationship with tax revenue collection in Rwanda ( 1=0.321,p- value=0.034< 0.05; 2=0.325, p-value=0.012< 0.05; 3=0.459,p- value=0.000< 0.05) and 4=0.273,p- value=.007< 0.05) respectively. The study concluded that an improved taxpayer’s financial statement audit would increase revenue collection in Rwanda and statistically significance.
Key words: Taxpayers, financial statements audit, revenue collection.
CITATION: Hagenimana, F. X., & Niyibizi, F. X. (2022). Taxpayers’ financial statements audit and its influence on revenue collection in Rwanda. A case study of Rwanda Revenue Authority (2015-2018). The Strategic Journal of Business & Change Management, 9 (4), 1600 – 1628.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2513
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