An analysis of determinants of effective tax administration: Inland revenue department, Namibia
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Date
2022
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
Tax in Namibia, as is the case in the rest of the world, is a key source of government
revenue, amongst others sources. However, the government of Namibia has not been able to fully exploit this excellent opportunity to generate revenue effectively. The tax is collected at a lower level because of the inefficiency of tax administration in Namibia. The purpose of this study is to investigate the determinants of tax administration efficiency from the Namibian perspective. This study is based on three variables used to determine factors that affect tax administration efficiency in Namibia. The three variables that are measured in this current study are: 1) organisational processes; 2) organisational resources; and 3) employee skills. This study is underpinned by the goal-setting theory and further supported by the governance theory. The data were collected through the distribution of questionnaires to a sample of 120 employees in Namibia’s Inland Revenue Authority. A total of 81 questionnaires were analysed using the IBM Statistical Package for Social Sciences (SPSS). Based on multiple regression analysis and other statistical techniques, the results of the study showed a significant relationship between organisational processes, organisational resources, and employee skills development with the efficiency of tax administration. The three variables were therefore found to be crucial for enhancing the effectiveness of tax administration. However, the Inland Revenue Department (IRD) in Namibia was found to have ineffective organisational processes, inadequate resources, and a lack of
focus on skills development. This has negatively affected the effectiveness of tax
administration in the country. The study recommended that the IRD should give
importance to the creation of awareness among taxpayers and the continuous
development of employee skills in order to improve their competences in revenue administration. The IRD should also increase the level of automation of an
administrative process to ensure efficiency and minimise the cases of corruption and
fraud. Given the findings from the study, several limitations and suggestions for future studies that can be conducted in this scope in Namibia are suggested
Description
A thesis submitted in fulfilment of the requirements for the degree of
Master of Science (Accounting & Finance)
Keywords
Tax administration efficiency in Namibia, Namibia’s inland revenue authority