Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: <i>The Case of Rwanda</i>

Sazir Nsubuga Mayanja; Kato Mahazi; Twesige Daniel

doi:doi:10.11648/j.sjbm.20200802.14

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Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda

Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel

Published in Science Journal of Business and Management (Volume 8, Issue 2)

Received: 6 January 2020 Accepted: 24 February 2020 Published: 19 May 2020

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Abstract

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.

Published in	Science Journal of Business and Management (Volume 8, Issue 2) This article belongs to the Special Issue Business Policy& Strategic Management
DOI	10.11648/j.sjbm.20200802.14
Page(s)	74-82
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Tax, Tax Dispute, Taxation, Tax Payer, Tax Compliance, Avoidance, Tax Dispute Resolution Mechanisms

References

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[3]	HM Revenue & Customs (2017): Resolving tax disputes Commentary on the litigation and settlement strategy, Report 2017
[4]	Walpole and Binh (2016). Tax disputes, compliance costs and access to tax justice, 12th International Conference on Tax Administration 31 March & 1 April 2016, Sydney, AUSTRALIA
[5]	HM Revenue & Customs (2017) Resolving tax disputes Commentary on the litigation and settlement strategy, john.neale@hmrc.gsi.gov.uk
[6]	Committee of Experts on International Cooperation in Tax Matters (2019): Dispute Avoidance and Resolution, E/C.18/2019/CRP.2
[7]	Sserunjogi Brian Paul Corti Lakuma (2019): Court Actions and Boosting Domestic Revenue Mobilization in Uganda, Economic Policy Research Centre: Research Series No. 146.
[8]	KPMG (2016) International’s Global Tax Benchmarking Survey
[9]	Thuronyi, V., Lead, C., & Espejo, I. (2013). How can an excessive volume of tax dispute be dealt with? Washington, DC: IMF.
[10]	www.un.org 16STM
[11]	Koos Edward (2014) Tax Dispute Resolution Mechanisms in Developed and Developing Countries: An Analysis of Factors that Affect Dispute Mechanism Design and Functionality (June 24, 2014). Available at SSRN: https://ssrn.com/abstract=2458765
[12]	Noor Sharoja Sapiei, Mazni Abdullah, Kamisah Ismail (2013): A Qualitative Findings of Tax Compliance Burden: Analysis of Tax Preparers Survey, American Journal of Economics 2013, 3 (5C): 1-5 DOI: 10.5923/c.economics.201thirty1.01
[13]	James, S., & Alley, C. (2004). Tax Compliance, Self-Assessment and Tax Administration. Journal of Finance and Management in Public Services, 2 (2), 27-41.
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[16]	Binh Tran-Nam (2004) ASSESSING THE TAX SIMPLIFICATION IMPACT OF TAX REFORM: RESEARCH METHODOLOGY AND EMPIRICAL EVIDENCE FROM AUSTRALIA Proceedings. Annual Conference on Taxation and Minutes of the Annual Meeting of the National Tax Association Vol. 97 (2004), pp. 376-382
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[19]	http://www.heritageoilplc.com/resource/afr17ee1of10m- 40lq46n97d3.pdf
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[22]	PWC. (2016). Managing tax disputes: new strategies for the BEPS environment. London: PWC.
[23]	Mohd, R. P. (2010). Tax Knowledge and Tax Compliance Determinants in Self-Assessment System in Malaysia. PhD Thesis.
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[25]	European Commission (2017) Literature review on taxation, entrepreneurship and collaborative economy, Final Report TAXUD/2016/DE/315 FWC No. TAXUD/2015/CC/131 WORKING PAPER No 70 – 2017, ISSN 1725-7565 (PDF) ISSN 1725-7557 (Printed).

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APA Style

Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel. (2020). Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Science Journal of Business and Management, 8(2), 74-82. https://doi.org/10.11648/j.sjbm.20200802.14

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ACS Style

Sazir Nsubuga Mayanja; Kato Mahazi; Twesige Daniel. Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Sci. J. Bus. Manag. 2020, 8(2), 74-82. doi: 10.11648/j.sjbm.20200802.14

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AMA Style

Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel. Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Sci J Bus Manag. 2020;8(2):74-82. doi: 10.11648/j.sjbm.20200802.14

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@article{10.11648/j.sjbm.20200802.14,
  author = {Sazir Nsubuga Mayanja and Kato Mahazi and Twesige Daniel},
  title = {Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {74-82},
  doi = {10.11648/j.sjbm.20200802.14},
  url = {https://doi.org/10.11648/j.sjbm.20200802.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.14},
  abstract = {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.},
 year = {2020}
}

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TY  - JOUR
T1  - Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda
AU  - Sazir Nsubuga Mayanja
AU  - Kato Mahazi
AU  - Twesige Daniel
Y1  - 2020/05/19
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.14
DO  - 10.11648/j.sjbm.20200802.14
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
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EP  - 82
PB  - Science Publishing Group
SN  - 2331-0634
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AB  - 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.
VL  - 8
IS  - 2
ER  -

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Author Information

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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Plain Text BibTeX RIS

APA Style

Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel. (2020). Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Science Journal of Business and Management, 8(2), 74-82. https://doi.org/10.11648/j.sjbm.20200802.14

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ACS Style

Sazir Nsubuga Mayanja; Kato Mahazi; Twesige Daniel. Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Sci. J. Bus. Manag. 2020, 8(2), 74-82. doi: 10.11648/j.sjbm.20200802.14

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AMA Style

Sazir Nsubuga Mayanja, Kato Mahazi, Twesige Daniel. Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda. Sci J Bus Manag. 2020;8(2):74-82. doi: 10.11648/j.sjbm.20200802.14

Copy | Download

@article{10.11648/j.sjbm.20200802.14,
  author = {Sazir Nsubuga Mayanja and Kato Mahazi and Twesige Daniel},
  title = {Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda},
  journal = {Science Journal of Business and Management},
  volume = {8},
  number = {2},
  pages = {74-82},
  doi = {10.11648/j.sjbm.20200802.14},
  url = {https://doi.org/10.11648/j.sjbm.20200802.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.sjbm.20200802.14},
  abstract = {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.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Effect of Tax Dispute Resolution Mechanism on Taxpayer’s Compliance: The Case of Rwanda
AU  - Sazir Nsubuga Mayanja
AU  - Kato Mahazi
AU  - Twesige Daniel
Y1  - 2020/05/19
PY  - 2020
N1  - https://doi.org/10.11648/j.sjbm.20200802.14
DO  - 10.11648/j.sjbm.20200802.14
T2  - Science Journal of Business and Management
JF  - Science Journal of Business and Management
JO  - Science Journal of Business and Management
SP  - 74
EP  - 82
PB  - Science Publishing Group
SN  - 2331-0634
UR  - https://doi.org/10.11648/j.sjbm.20200802.14
AB  - 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.
VL  - 8
IS  - 2
ER  -

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