An evaluation of the circumvent strategy implementation factors inhibiting effective tax collection within the Inland Revenue department in the Ministry of Finance in Namibia
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Date
2022
Authors
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Journal ISSN
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Publisher
University of Namibia
Abstract
This study was conducted to evaluate the circumvent strategy implementation
factors inhibiting effective tax collection within the Inland Revenue
Department (IRD) in the Ministry of Finance in Namibia. The study was
conducted against the background that the IRD in Namibia was struggling
with the collection of taxes with more than N$ l9 Billion uncollected tax
revenue. The objectives of the study were: to identify circumvent strategy
implementation factors that inhibit the effective collection of taxes by the
Inland Revenue Department, to assess the impact 01 the strategy
implementation factors on the effective collection of taxes by the Inland
Revenue Department, to establish ways of avoiding strategy implementation
factors that inhibit effective collection of taxes by the Inland Revenue
Department and to recommend best practices from the international and
regional levels on how to avoid strategy implementation factors that inhibit
effective collection of taxes by the Inland Revenue Department. The study
was conducted through a descriptive survey, based on a sample of 44
employees from the Khomas Region of the !RD in Windhoek, Namibia.
Respondents were selected through stratified random ampling procedure and
data was collected through interviews and self-administered questionnaires.
The findings of the study revealed that factors that inhibited effective tax
collection included tax avoidance and eva ion, lack of capacity by revenue
authorities, poor compliance and corruption and exemptions. The most
prominent factor was tax evasion and avoidance, followed by lack of capacity
of revenue department. The study established that there were significant but
moderate correlations between strategy implementation factors and revenue
collection at the IRD. The increase in inhibiting factors led to a moderate
decrease in revenue collection, for instance, when tax eva ion, exemptions,
and corruption increased, there was a moderate decrease in revenue collected
by the IRD. The major solutions suggested by respondents for reducing
circumvent factors were tax education, frequent audits, training staff,
incentivise employees and building IT systems to flag uspicious taxpayers.
The study recommends an improvement in the capacity of revenue authorities
and the adoption of international standards in the management of taxes
Description
A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Business Administration Management Strategy
Keywords
Tax collection, Inland Revenue, Taxation, Circumvent strategy, lmplementation lnhibiting Factors, Namibia, University of Namibia