Effectiveness of Appeal Settlement on Tax Collection: A Case Study of Rwanda (2019-2024)

This study investigates the impact of tax appeals on revenue collection in Rwanda, analyzing three key challenges: legal computation errors, procedural misuse, and tax law ambiguity. Using a mixed-methods approach grounded in Tax Compliance Theory and Procedural Justice Theory, the research surveyed 100 taxpayers, practitioners, and RRA officials (selected through stratified random sampling) and conducted follow-up interviews. SPSS analysis revealed that 54% of respondents encounter frequent tax computation errors (particularly in VAT and income tax), which 83% believe significantly hinder revenue collection. Procedural errors affected 90% of respondents, primarily in calculations (28%) and e-filing (21%), with 85% agreeing these reduce system efficiency. While 75% cited ambiguous laws as causing disputes, an equal proportion found RRA procedures clear, indicating a paradox between perception and experience. The study found 60% acceptance of appeal outcomes, but 25% dissatisfaction highlights needs for reform. Key recommendations include simplifying tax legislation to reduce ambiguity, enhancing digital platforms to minimize errors, and improving taxpayer education programs. Correlation analysis (p<0.05) confirmed significant relationships between these challenges and collection inefficiencies, supporting the need for systemic improvements. These findings contribute to Rwanda's digital tax transformation by identifying specific pain points in the appeals process and proposing targeted solutions to enhance compliance, trust, and revenue collection efficiency. The research underscores the importance of balancing legal precision with practical implementation to create a more effective and equitable tax system.

Tax appeals, revenue collection, Rwanda Revenue Authority

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