IMPACT OF ELECTRONIC BILLING MACHINE ON TAX REVENUE COLLECTION CASE STUDY OF RRA (2020-2023)

Abstract

This study set out the contribution of electronic billing machine to tax collection in Rwanda. Case study of Rwanda Revenue Authority (RRA) from 2020-2023. The general objective of the study is to find out the contribution of electronic billing machine to tax collection in Rwanda while specific objectives were to verify if Electronic billing machine is effectively used by Taxpayers and to examine the contribution of Electronic billing machine.to examine the contribution of Electronic billing machine and tax collection in Rwanda and To give some suggestions to RRA on how to improve electronic billing machine in order to increase tax collected in Rwanda, research methodology which contains research design; Data Collection Methods; Validity and reliability tests, Data processing; Data analysis; Limitation of the study and Ethical considerations. The research results The first hypothesis was to assess the effectiveness of effectiveness of EBM used by RRA where 27(57.4%) agreed that RRA train the Tax payers on how to use EBMs, 15(31.9%) agreed and remaining 5(10.6%) strongly disagree with this statement that EBM provides the data on time to the RRA employees. 30(63.8%) strongly agreed that EBM provides accurate without manipulation by Tax payers; 31.9% of respondents agreed that EBM provides accurate without manipulation by taxpayers while the remaining 2(4.3%) disagreed with this statement that EBM provides accurate without manipulation by Tax payers. 21(44.6%) strongly agreed that EBM contribute to the reduction of TAX REVENUE processing cost, 16(34.0%) agreed and 10(21.2%) disagreed with the statement. 24(51.0%) strongly agreed that EBM facilitate to make a follow up of Tax payers, 17(36.2%) agreed with the statement and 6(12.8%) of respondents disagreed that EBM facilitate to make a follow up of taxpayers. A tax audit is an examination of organization’s or individual’s tax return. Each year when tax season rolls around, the internal Revenue services, as well as state departments of taxation, kicks into overdrive to meet with the onslaught of tax filings.