Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda
Science Journal of Business and Management
Volume 8, Issue 2, June 2020, Pages: 74-82
Received: Jan. 6, 2020; Accepted: Feb. 24, 2020; Published: May 19, 2020
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Sazir Nsubuga Mayanja, School of Post Graduate Studies, University of Kigali, Kigali, Rwanda
Kato Mahazi, School of Post Graduate Studies, University of Kigali, Kigali, Rwanda
Twesige Daniel, School of Business, INES - Ruhengeri, Ruhengeri, Rwanda
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This study was carried out to explore and analyse the effect of tax dispute resolution mechanism in Rwanda in relation to on taxpayer’s compliance. From a population of 297, a sample of 170 were selected. The findings from data collected using structured questionnaires and documentation was presented using frequencies and percentages. It was established that there is significant positive relationship between fairness of tax disputes resolutions and tax compliance. The results from primary data revealed that the appeal committee of the Rwanda Revenue Authority (RRA) does not include external tax experts, rather, it is solely composed of only its own staffs which is suspiciously viewed by taxpayers. Respondents also revealed that resolving tax disputes through administrative procedures other than judicial ones positively impacts tax compliance. This was affirmed by more than 80% of respondents. It was concluded that that Rwanda Revenue Authority have to work and put strategies to resolve tax disputes which arise in an independent a manner as early as possible, to positively influence taxpayer’s compliance. The study further recommends to the Authority that tax audits cases have to be reviewed by the independent panel review within the department who has no previous involvement with the audit or case work to review the technical merits of an audit position, before the matter is finalised.
Tax, Tax Dispute, Taxation, Tax Payer, Tax Compliance, Avoidance, Tax Dispute Resolution Mechanisms
To cite this article
Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel, Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda, Science Journal of Business and Management. Special Issue: Business Policy& Strategic Management. Vol. 8, No. 2, 2020, pp. 74-82. doi: 10.11648/j.sjbm.20200802.14
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