dc.description.abstract | The success of the KRA largely hinges on the efficacy and efficiency of the newly
introduced iTax system in increasing tax compliance and closing tax leakages through tax evasion. The iTax system was launched in October 201 1 in a bid to increase efficiency and ensure better compliance with tax laws (KRA, 2014). The iTax system is a webbased application that gives taxpayers the convenience of filing returns and registering tax payments from the comfort of their homes or offices. The current system allows taxpayers to file returns and agency revenue, including Sugar Development Levy and Kenya Bureau of Standards. The broad objective of the study was to establish the
efficacy of the itax system on tax administration in Kenya. A Correlation research design
was undertaken in order to ascertain reliability of data collected to describe the
relationship between the variables of interest in the study and consequently test the
research hypothesis. This study collected secondary data. Secondary data was obtained
from published material and information from other sources such as annual reports and
published data. The research obtained quantitative data. Descriptive and inferential
statistics were employed in data analysis with aid of the Statistical Package for Social
Sciences (SPSS) package. Descriptive statistics included percentages and measures of
central tendency (mean and standard deviation). Paired t-test was used as an inferential
statistic. The collected data was analyzed through descriptive statistics. The study
established that KRA‘s variability of the revenue return after itax implementation was
14.876 billion, while the variability of the revenue return during and before itax
implementation was 7.907 billion and 13.4415 billion respectively. The study concluded
that itax implementation led to an increase in the variability of the revenue return for the
periods under study. It also concluded that the quarterly abnormal revenue volumes
fluctuated before, during and after itax implementation, with the period after itax
implementation experiencing sharp fluctuations. iTax actually has an effect to revenue
collection as according to the t – tests there is significance in the correlation between tax
collected before the itax implementation and after the itax implementation. This clearly
indicates that itax implementation increases revenue collection. That in essence means
that the itax system is efficient in tax administration in Kenya. Thus it is right to say that
itax system is directly related to tax administration. Based on the findings and the
analysis of the research done, it was recommended that more training and or marketing of the online system should be done by KRA to ensure that taxpayers who embrace the
system increase. The government should also improve connectivity to enhance
compliance among small taxpayers. | en_US |