EFFECTS OF INFORMATION COMMUNICATION TECHNOLOGIES ON THE TAX REVENUE COLLECTION IN RWANDA (2015-2021)
Abstract
The study sought to analyze the impacts of information communication technologies on the tax revenue collection in Rwanda. Revenue collection was low and tax administration weak and this was believed to be due to manual system of tax administration characterized by low tax collection, delays and poor record keeping, this made Rwanda Revenue Authority to meet their targeted budgets. With introduction of e-filing in 2012 it is believed that electronic tax management system will improve tax revenue and bridge the gap of the budget but still the challenges persisted as the country fail to meet their expected budget due to poor tax management system. The following specific objectives guided this research: To assess the determinants of Information Communication Technology used in RRA, to analyze the revenue collection in RRA; to find out the relationship between ICT and revenue collection in RRA. The study adopted a descriptive case study design using both qualitative and quantitative methods. Respondents were selected using purposive sampling technique to select 119 respondents as the sample size. The study used both primary and secondary data collected using questionnaires, interviews and documentary review. Quantitative data were analyzed using descriptive statistics and qualitative data were analyzed using thematic analysis. Data were presented using frequency table and percentage. As revealed from this study, it was found out that majority of the respondents (56%), agreed that online tax payments have helped RRA in expanding its revenue base. It was also found out that the level of revenue collection has been increased from 2014/15 up to 2020/21, where in 2014/15 revenue collected was 387.4 billion; in 2014/15; 2015/16; 2016/17; 2017/18; 2018/19; 2019/20; 2020/21 it has been increased to 474.9; 569.6; 663.8; 773.9; 872.3; 1,001.3; 1,102.8 billion respectively. The study indicated that there was a strong positive and significant relationship between ICT and revenue collection in RRA as approved by coefficients of correlation which was equal to 0.888. The study acknowledges the role that technology plays in enhancing tax compliance among the Large Taxpayers and recommends that Rwanda Revenue Authority should sensitize the Large Taxpayers on the systems it has in place and how they will be of advantage to them in terms of increasing their compliance levels. The study recommends to the taxpayers to be familiar with the ICT because it is the best way to facilitate the tax compliance management and control. Furthermore the study recommended to the Tax Administration to implement all the adequate possibilities of using ICT.
Keywords: Information Communication Technology, Rwanda Revenue Authority, Tax Revenue collection.
CITATION: Birakera, D., & Harelimana, J. B. (2023). Effects of information communication technologies on the tax revenue collection in Rwanda (2015-2021). The Strategic Journal of Business & Change Management, 10 (1), 398 – 412.
Full Text:
PDFReferences
Agrawal, M. (2006). E filing of returns: Review of general equilibrium estimates and analysis, National Tax Journal, 66 (1), 185 – 214.
Allink, H., & Kommer, J. (2000). The tax non-compliance; facilitate tax compliance and satisfy information. Johannesburg: Pearson Education.
Amir, H., Ojochogwu, A., & Ojeka, A, (2011). The tax system as an important determinant in an economies’ revenue collection. International Journal of Business and Management, 7 (13), 34-56.
Bahizi, K. A. (2013). The impact of tax incentives on the promotion of SMEs. Kigali: MIT Press.
Brostek, M. (2007), Tax Compliance: Multiple approaches are needed to reduce tax gap. Journal of taxation, 14 (37), 125-181.
Chandler, D. (2000). Technology change theory. Beverly Hills: SAGE Publications.
Chipeta, K. (1998). The effects of tax reforms on revenue collection in Malawi for the period 1970 to 1994. Lilongwe: University of Lilongwe.
De Wulf, L., & Sokol, J. B. (2005). Customs modernization handbook. Washington: World Bank.
Devereux, M. P., Liu, l., & Loretz, S. (2014). The elasticity of corporate taxable income: New evidence from UK tax records. American Economic Journal: Economic Policy, 6 (2), 19–53.
Dramod, K. R. (2004). The challenges of tax collection in developing economies. Georgia: University of Georgia.
Duncan, P. (2010). The major technological advancement used in tax administration. New Delhi: UBSPD.
Erard, G. (2002). The rapidly technology change: Tax compliance. Journal of Information Technology, 13, (62), 45-53.
Goolsbee, A. (2004), The impact of the corporate income tax: Evidence from state organizational form data. Journal of Public Economics, 88 (11), 2283 – 2299.
Gupta, M. (2012). The journey of e filing of income tax returns in India. International Journal of Research in Commerce and Management, 2 (6), 180.
Haughton, M., & Desmeules, R. (2001). Recent reforms in customs administration. The International Journal of Logistics, 12 (17), 65-82.
Holniker, L. (2005). Impact of technology on tax compliance: Evidence from Sweden. Small Business Economics, 17 (3), 213–228.
Ireland, P. (1994). Supply-side economics and endogenous growth. Journal of Monetary Economics 33 (42), 559-571.
Jahirul, H. (2011). Tax evasion and avoidance crimes a study on some corporate firms of Bangladesh Unpublished Thesis, Eastern University, Bangladesh.
Jones, C. R. (2009). Understanding and improving use-tax compliance: A theory of planned behaviour approach. Theses and Dissertations.Paper No. 2032.
Kasomo, D. (2006). Research methods in humanities. Nairobi: Egerton University Press Publishers.
Keen, M. (2013). Taxation and development:Critical Issues in Taxation and Development. Cambridge: MIT Press.
Kimeu, G. (2013). The effect of tax reforms on financial performance of real estate firms in Kenya. Nairobi: University of Nairobi.
Kothari, C. R. (1999). Research methodology-methods and techniques. New Delhi: Wiley & Sons Limited.
Kothari, C. R. (2000). Research methodology: methods and techniques (2nd Ed.) New Delhi: Pearson Education Ltd.
Kusi, P. (1998). Tax reform and revenue productivity of Ghana for the period 1970 to 1993. Accra: Act Press.
Mugenda, A. G. (2008). Social science research theory and principles. Lagos: ARTS Press.
Musgrave, K. (2004). The impact of technology on tax revenues.Nairobi: University of Nairobi.
Muthama, G. (2013). Change management practices adopted by Rwanda Revenue Authority. Kigali: Iga Publishers.
Muwonge, H. (2011). The Influence of electronic filing system on tax compliance and tax collection. Kampala: Makerere University.
Nakiwala, A. (2010). Tax competencies, compliance costs and income tax compliance among SMES in Uganda.Kampala: Makerere University
Osoro, K. (1993). The revenue productivity implications of tax reforms in Tanzania. Nairobi: University of Nairobi.
Pandey, I. M. (2006).Financial management (9th Ed.). New Delhi: Vikas Publishing House.
RRA. (2013). Theintroduction of e-filing in Rwanda. Kigali: RRA.
RRA.(2015).Compilation of fiscal laws and regulations in use in Rwanda.Kigali: RRA.
Sani, E. (2009). The automation system to improve revenue collection. New Delhi: Prentice Hall.
Saunders, M., Lewis, P., & Thornhill, A. (2000). Research methods for business students(2nd Ed.).London: Prentice Hall.
Saunders, M.; Lewis, P.; & Thornhill, A. (1999). Research methods for business students. Harlow: Pearson Education Ltd.
Teera, M. (2002).The tax system and tax structure of Uganda. Kampala: MIT Press.
UNCTAD. (2010). The advancement of technology and the use of the internet. New York: UNCATAD.
Visser, C. B., & Erasmus, P. W. (2005).The management of public finances: a practical guide. Oxford: Oxford University Press.
DOI: http://dx.doi.org/10.61426/sjbcm.v10i1.2546
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.