Authors :
Josephine NIYOMANZI; Angelo Ndayiragije
Volume/Issue :
Volume 9 - 2024, Issue 3 - March
Google Scholar :
https://tinyurl.com/c85t96yb
Scribd :
https://tinyurl.com/4wmud5cz
DOI :
https://doi.org/10.38124/ijisrt/IJISRT24MAR810
Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.
Abstract :
The study aimed to explore the contribution of tax reform on reduction of tax evasion in Rwanda, guided by objectives to
examine contribution of personal income tax reform, identify contribution of corporate income tax reform and assess
contribution of value added tax reform. The research design was qualitative, targeting 2700 taxpayers were from Rubengera
sector. The systematic sampling method are taxpayer, resulting in a sample size of 348 respondents drawn using purposive
sampling. Close ended/structured questionnaires were used to primary data, which was then analyzed using the Statistical
Package for Social Science (SPSS). The data was analyzed the findings of using both descriptive and inferential statistics show
a strong and positive association between tax reform and tax evasion at personal income tax reform (PIT) will help with
reduction of tax evasion with the mean score is notably higher at 2.74, indicating a more positive perception of the reform's
effectiveness. Still, the wider standard deviation of 1.404 suggests greater variability, corporate income tax reform (CIT)
combined with value added tax(VAT) will help with reduction of tax evasion with no significant correlation between VAT
reforms and corporate income tax reforms or their effectiveness and the corporate income tax reform (CIT) respondents gave
an average score of 2.73 on the effectiveness of these reforms in reducing tax evasion, with a standard deviation of 1.422,
indicating variability in opinions. The results show that the study stated that tax reforms reduced tax evasion significantly and
made the following recommendations: The Rwanda Revenue Authority (RRA) should offer comprehensive training to all
taxpayers, focusing particularly on educating them about the substantial changes resulting from the tax reforms, especially the
new requirements and their perceptions of the impact and effectiveness of these reforms in curbing tax evasion. The consistent
nature of these results emphasizes the importance of considering a variety of viewpoints when assessing the outcomes of tax
reform efforts. To ensure the continuous effectiveness of Rwanda's tax system, it's imperative to regularly review and adjust it
in accordance with the current economic landscape. The study's findings underscore the substantial impact of tax reforms on
reducing tax evasion. The research concludes by suggesting further investigations to evaluate the influence of tax reform on tax
revenue contribution in Rwanda.
The study aimed to explore the contribution of tax reform on reduction of tax evasion in Rwanda, guided by objectives to
examine contribution of personal income tax reform, identify contribution of corporate income tax reform and assess
contribution of value added tax reform. The research design was qualitative, targeting 2700 taxpayers were from Rubengera
sector. The systematic sampling method are taxpayer, resulting in a sample size of 348 respondents drawn using purposive
sampling. Close ended/structured questionnaires were used to primary data, which was then analyzed using the Statistical
Package for Social Science (SPSS). The data was analyzed the findings of using both descriptive and inferential statistics show
a strong and positive association between tax reform and tax evasion at personal income tax reform (PIT) will help with
reduction of tax evasion with the mean score is notably higher at 2.74, indicating a more positive perception of the reform's
effectiveness. Still, the wider standard deviation of 1.404 suggests greater variability, corporate income tax reform (CIT)
combined with value added tax(VAT) will help with reduction of tax evasion with no significant correlation between VAT
reforms and corporate income tax reforms or their effectiveness and the corporate income tax reform (CIT) respondents gave
an average score of 2.73 on the effectiveness of these reforms in reducing tax evasion, with a standard deviation of 1.422,
indicating variability in opinions. The results show that the study stated that tax reforms reduced tax evasion significantly and
made the following recommendations: The Rwanda Revenue Authority (RRA) should offer comprehensive training to all
taxpayers, focusing particularly on educating them about the substantial changes resulting from the tax reforms, especially the
new requirements and their perceptions of the impact and effectiveness of these reforms in curbing tax evasion. The consistent
nature of these results emphasizes the importance of considering a variety of viewpoints when assessing the outcomes of tax
reform efforts. To ensure the continuous effectiveness of Rwanda's tax system, it's imperative to regularly review and adjust it
in accordance with the current economic landscape. The study's findings underscore the substantial impact of tax reforms on
reducing tax evasion. The research concludes by suggesting further investigations to evaluate the influence of tax reform on tax
revenue contribution in Rwanda.
