ASSESSMENT OF TAX ADMINISTRATION PROBLEMS: THE CASE OF MINISTRY OF REVENUE LARGE TAXPAYERS BRANCH OFFICE

Abstract

The study employed descriptive research methodology and both qualitative and quantitative research approach were adopted for the study. To conduct the study both primary and secondary data were gathered from taxpayers and tax officers. The sampling technique employed both probability and non-probability and questionnaires were distributed to 46 tax officer and 266 representative taxpayers. The study identified problems like the application of SIGTAS software not fully utilized; there is a complexity of tax laws, low level of tax education and awareness; there is no fast and quality service delivery; absence of strong coordination and cooperation between the branch and other stakeholder; there is hundreds of millions of tax arrears/delinquent taxes; there was a continuous growth in the actual revenue collected throughout the period under study but its collection was below as compared to the revenue collection. Thus depending on the identified problems the study recommended the following: there should be full utilization and implementation of automation through which the adequate information can be available; conducting extensive awareness creation program; There should be strong coordination and cooperation within the branch office and along other institutions and organizations including taxpayers; the branch should focus on the administration of illegal, nil filers, non- filers and delinquent tax payers, and uses effective appeal procedure to collect delinquent tax revenue are among others.