Effects of Electronic Tax System on Tax Collection Efficiency in Domestic Taxes Department of Kenya Revenue Authority, Rift Valley Region

Abstract

Electronic tax system is a computerized tax administration system that is especially designed to handle general tax administration from registration, assessment, filing returns and processing of claims and refunds. Its intended purpose is to reduce the cost of the tax payer complying with Kenya Revenue Authority (KRA), increase tax collection and remove the inefficiencies associated with costs of movement by tax payers to KRA offices to do business and present to tax payers a system that reduces their cost of compliance. This study therefore, was to investigate the effects of the electronic tax system on tax collection efficiency in Domestic Taxes Department of Kenya Revenue Authority in Rift Valley region. The study was guided by the following objectives; to establish the effects of electronic tax payment on revenue collection efficiency by KRA in Rift Valley region to find out the effect of electronic tax filing on revenue collection efficiency of Kenya Revenue Authority in Rift Valley region, the effect of staff competency on revenue collection efficiencyand to find out the level of taxpayers’ knowledge in operation electronic tax system and gave possible recommendations. The study employed a case study research design. The main data collection tools were questionnaires that were administered to the respondents. The study targeted a population of 130 respondents who included employees of KRA and tax payers. Data from the field was analyzed using SPSS that includes use of descriptive & inferential statistics. The findings from the analysis were organized, summarized and presented using tables, charts, graphs so as to achieve the objectives of the study as well as answer the research question.

Keywords: Tax Collection Efficiency, Employee Competence