Contribution of i-Tax System as a Strategy for Revenue Collection at Kenya Revenue Authority, Rift Valley Region, Kenya

Abstract

This study aimed at examining the contribution of iTax system as a strategy for revenue collection at Kenya Revenue Authority, Rift Valley Region, Kenya. The study was guided by the following hypothesis: Ha1:There is a contribution of online taxpayer registration on revenue collection at KRA Rift Valley Region ;Ha2: There is a contribution of online tax return processing on revenue collection at KRA Rift Valley Region ; Ha3: There is a contribution of online compliance and monitoring activities on revenue collection at KRA Rift Valley Region.; Ha4: There is a contribution of electronic tax payments on revenue collection at KRA Rift Valley Region.The study was guided by Resource Based Theory. The study employed correlational research design. The target population was the Domestic Taxes Department employees at KRA Rift Valley Region. The study targeted 114 employees. Stratified random sampling technique was used to select 76 respondents for the study. A five-point likert scale structured questionnaire was used to collect primary data. A pilot test was conducted to assess validity of the research instruments whereas Cronbanch’s coefficient alpha was used to determine reliability of the research instruments. Both descriptive and inferential statistics were used to analyze the data. Statistical significance of relationships among selected variables was determined using multiple regression analysis. Results obtained were presented using tables. The study established that online taxpayer registration, online tax return processing, online compliance and monitoring activities; and electronic tax payments have a significant contribution on revenue collection at KRA, Rift Valley Region. The study concluded that when all these iTax components were embraced, revenue collection, accounting for taxes paid, monitoring of taxpayers, service delivery to taxpayers and compliance improved. This study recommended that KRA management should focus on taxpayer facilitation through a robust system of customer relationships management, efficient complaints resolution and ensuring that more resources are invested in user friendly online tax systems in order to realize long term benefits