EFFECT OF TAX ADMINISTRATION PRACTICES ON REVENUE GROWTH OF KISII COUNTY GOVERNMENT, KENYA: A MODERATING ROLE OF GOVERNMENT POLICIES AND REGULATIONS
EFFECT OF TAX ADMINISTRATION PRACTICES ON REVENUE GROWTH OF KISII COUNTY GOVERNMENT, KENYA: A MODERATING ROLE OF GOVERNMENT POLICIES AND REGULATIONS
Jackline Onderi - Department of Accounting and Finance, School of Business and Economics, Kisii University, Kenya
Dr. Andrew Nyangau (PhD) - Department of Accounting and Finance, School of Business and Economics, Kisii University, Kenya
Dr. Joshua Wafula (PhD) - Department of Accounting and Finance, School of Business and Economics, Kisii University, Kenya
ABSTRACT
Tax administration practices provides an overview of policy design principles and their implications for tax administration by establishing linkages between tax practice and administration and showing how functions feed into one another. Revenue growth provides a conceptual framework that discusses the channels through which tax changes can affect economic performance, including the many ways in which a positive substitution effect in response to a tax rate that might be dissipated or even reversed by other factors. The purpose of the study was to evaluate the effect of tax administration practices on revenue growth. The specific objective includes; tax collection practice on revenue growth, the effect of tax rates litigations practice on revenue growth. The study was anchored on Allingham and Sandmo theory. Cross-sectional research design was used. The study was conducted in Kisii County. The study targeted all 256 employees. The sample size of 223comprised of 156 plus 30% of non-response respondents was selected. Questionnaires were used to collect primary data; secondary data was collected from revenue document. Reliability was measured by level of consistency using test and retest method. Data for this study was analyzed using time series and panel data analysis for a period of 10 years. Correlation analysis showed that there was weak and positive significant correlation between tax collection procedure and revenue growth. This implied that tax collection procedures improve revenue growth of the county. Further study can be done on tax rates and performance of other counties.
