An investigation of the effect of online services on revenue collection: a case study of the integrated tax management information system of the domestic taxes Department of Kenya Revenue Authority

Abstract

Online services forms part of the tax reforms were by Kenya Revenue Authority. Since its formation, Kenya revenue authority has implemented several tax reforms with the motive of enhancing tax collections and tax efficiency. Taxation is the main source of government revenues in Kenya. Kenya's tax revenues have been increasing rapidly due to the country's rapid economic development; therefore, Government has invested time and money in an integrated online tax filing system for tax administration to improve the efficiency of its tax system. Using the integrated tax management information system of the domestic tax department as an example of e-governmental services, this study seeks to develop an understanding of the effect of online services in revenue collection in Kenya. The specific objective of the study is to assess the impact of KRA online services on revenue collection, to assess whether online services will significantly reduce queues experienced at the time of submitting tax returns and to determine the relevance of electronic record keeping in enhancing revenue collection. The study adopts a case study approach of one of the departments of the Kenya Revenue Authority, the Domestic Tax Department-MST with emphasis to VAT and PA YE collections. The study will use a structured questionnaire as the main data collection tool. The collected data was analyzed using descriptive statistics and frequency tables to answer the objectives of the study. The data was presented using charts and tables.