I-TAX SYSTEM CAPABILITIES AND REVENUE COLLECTION BY KENYA REVENUE AUTHORITY
I-TAX SYSTEM CAPABILITIES AND REVENUE COLLECTION BY KENYA REVENUE AUTHORITY
William Okochi Achibo - Master of Business Administration Student, Department of Accounting and Finance School of Business, Economics and Tourism, Kenyatta University, Kenya
Dr. Festus M. Wanjohi (PhD) - Department of Accounting and Finance, School of Business, Economics and Tourism Kenyatta University, Kenya
ABSTRACT
Information technology advancements are revolutionizing business interactions and taxation, enabling real-time integration across tax regimes. The digitalization of taxes is dominating countries, and tax authorities must be at the forefront of offering guidance to taxpayers on policy direction on taxation and technology. Technology has enabled tax authorities to manage tax administration and enhance their performance in terms of tax collection using quality data, established systems, and employee technical skills efficiently and effectively. However, the inability to attain the tax revenue targets from collected revenue is still a challenge that the tax authorities are facing, despite the Kenyan Revenue Authority indicating an upward trajectory in revenue collection. The general objective of the study was to examine the iTax system’s capabilities and revenue collection by the Kenya Revenue Authority, focusing on the following specific objectives: tax registration, tax efficiency, tax compliance, and tax knowledge. The study was anchored on the technology acceptance model, neo-classical theory, and resource dependence theory. The target population was six million taxpayers. Using simple random sampling, 400 taxpayers were considered, of whom 287 filled out the questionnaire, translating to a 71.8% response rate. Primary and secondary data were gathered. The central tendencies of variables were measured using a descriptive statistic. The results from the inferential statistics were presented in tabular form, graphics, and charts. The study revealed that revenue collection was significantly influenced by tax registration, tax efficiency, tax compliance, and tax knowledge. The study concluded that tax compliance highly influences revenue collection, followed by tax efficiency, tax knowledge, and tax registration. Both variables had a significant positive correlation with revenue collection. The study recommends the need for the Kenya Revenue Authority to enhance tax compliance through ensuring accuracy and accountability of iTax-generated reports and onboarding more taxpayers into the iTax system to increase revenue collection against the targets. The enhancement of tax education in formal institutions, conducting training, and formulation of the Data Protection Act were suggested.
