Influence of iTax System on Service Delivery at The Kenya Revenue Authority
- September 30, 2021
- Posted by: rsispostadmin
- Categories: Agriculture, Economics, IJRISS, Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue IX, September 2021 | ISSN 2454–6186
Samuel Otieno John
Moi University, Department of Agricultural Economics and Natural Resource Management
Keywords: itax system, service delivery, revenue
Abstract: iTax system provides a convenient and efficient way of improving revenue collection and transparency in fiscal administration. This study aimed at determining the effect of the itax system on service delivery by the Kenya Revenue Authority in Eldoret Station. The study used a stratified random sampling technique to sample 37 Kenya Revenue Authority employees in Eldoret stations. The data were analyzed by use of descriptive statistics and regression techniques. The empirical results of the study showed that iTax stability was statistically significant with a (p-value =0.003), iTax security had a significant association with service delivery (p-value=0.001), and iTax technical skills also had a substantial relationship with service delivery with a (p-value =.066). The study concluded that iTax systems affect service delivery at KRA in Eldoret station due to a robust statistical association between the iTax systems and service delivery. The study recommended that the Kenya Revenue Authority should establish tight policy measures to curb the issues associated with iTax insecurity and finally employ staff with technical knowledge and skills on the iTax system.
Globally, the tax environment has changed rapidly. The tax authorities are being challenged to maintain a modernized and responsive tax administration system. Tax agencies leverage the electronic tax filing (e-filing) system to achieve more excellent tax administrative and compliance efficiency (Van and James, 2010). Electronic filing is the modern way of tax authorities interacting with taxpayers. Tax practitioners do not see that the conversion to electronic filing offers much to them in terms of return on their investment, considering the cost of software and hardware needed to adopt the e-filing technology (Simiyu, 2013). Although many tax practitioners perceive that electronic filing is an essential and improved service, they do not view it as vital to gaining a competitive advantage (Veras and Preziosi, 2011). Electronic tax administration systems have gained prominence in Sub-Saharan Africa (SSA) in the 21st century. This has been spurred on by the need for improved efficiency and accountability in taxation systems and inherently adopting information technology (IT) tax-based systems (OECD, 2010). Population growth and demands for transparency in tax administration policy have further emphasized the need for better revenue collection systems and procedures in East African countries (Addision et al., 2014).
Electronic tax systems are designed to reduce the cost of tax administration, ensure ease of compliance, and provide for