Effect of tax procedures on compliance of taxpayers in Rwanda: A case of Rwanda Revenue Authority

Berthilde Tuyishimire; Emmanuel Ntegamaherezo

doi:10.51867/ajernet.6.3.78

Authors

Berthilde Tuyishimire
betuyishimire90@gmail.com
Institut d’Enseignement Superieur de Ruhengeri (INES), Rwanda
Dr. Emmanuel Ntegamaherezo Institut d’Enseignement Superieur de Ruhengeri (INES), Rwanda

Keywords:

Compliance of Taxpayers, Record Keeping Procedures, Tax Procedures, Taxpayer Registration Procedures, Tax Audit & Investigation Procedures

Abstract

Tax compliance refers to the adherence of individuals and businesses to tax laws and regulations. It encompasses the accurate reporting of income, timely payment of taxes owed, and the submission of required documentation to tax authorities. However, the effectiveness of tax compliance faces challenges. The main purpose of this study was to investigate the effect of tax procedures on the compliance of taxpayers in Rwanda. Specifically, to assess the effect of taxpayer registration procedures on the compliance of taxpayers in Rwanda, to analyse the effect of tax record-keeping procedures on the compliance of taxpayers in Rwanda, and to evaluate the effect of tax audit & investigation procedures on the compliance of taxpayers in Rwanda, a case of the Rwanda Revenue Authority. This research was guided by the normative theory of taxation, neoclassical theory, and optimal tax theory. This study used descriptive research designs. The study population was 35476 individuals, and the sample size was 100 respondents. The study employed simple random sampling for selecting the respondents. A questionnaire was employed for data collection. The collected data were analysed using descriptive and inferential statistics. The findings showed that there is an effect of (M=3.99, SD=1.066) taxpayer registration procedures on the compliance of taxpayers, there is an effect of (M=4.01, SD=0.940) tax record-keeping procedures on the compliance of taxpayers, and there is an effect of (M=4.09, SD=0.900) tax audit & investigation procedures on the compliance of taxpayers. Additionally, the results also showed that there is a positive relationship and significant effect of (B=0.257, p-value=0.000˂0.05) taxpayer registration procedures on the compliance of taxpayers; there is a positive relationship and no significant effect of (B=0.049, p-value=0.363˃0.05) tax record-keeping procedures on the compliance of taxpayers; and there is a positive relationship and significant effect of (B=0.505, p-value=0.000˂0.05) tax audit & investigation procedures on the compliance of taxpayers. The study concludes that tax procedures like taxpayer registration, tax record-keeping procedures and tax audit & investigation procedures significantly influence taxpayer compliance in Rwanda. The study recommends that tax managers should increase tax awareness and tax education about the registration process, implement supportive measures, such as providing resources and tools to assist taxpayers in their record-keeping efforts, and provide the implementation of clear guidelines and consistent practices in tax audits that can mitigate taxpayer anxiety and resistance.

Dimensions

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