The Moderating Role of Regulatory Framework on the Relationship Between Digital Infrastructure and Tax Collection Efficiency

Abstract

The study's primary objective was to ascertain how the regulatory environment, using the Kenya Revenue Authority as a case study, influences the relationship between digital infrastructure and tax collection. An explanatory research design was employed in this study. The target group consisted of 11,340 Kenya Revenue Authority employees who work in Nairobi County and are headquartered in Times Tower. The sample size was 161 employees of KRA who were selected using a stratified random sampling. The study collected primary data. The main data collection tools included a questionnaire. After the data is collected, it will be input into Excel first and cleaned and sorted. The data was then coded in Statistical Package for Social Sciences (SPSS) software, which will be used in analyzing the data. The data analysis methods for this study were descriptive correlation and regression analysis.  Results showed that eTIMS had a positive and significant effect on tax collection at the Kenya Revenue Authority (β = 0.334, p = 0.000). In addition, digital reporting had a positive and significant effect on tax collection at the Kenya Revenue Authority (β= 0.349, p=0.000). This research emphasizes how crucial it is to spend money on digital infrastructure in order to make tax procedures easier to understand and more efficient, which would increase taxpayer compliance. By offering insightful information on how to enhance and improve the use of iTax, the current study's findings significantly advance the field of knowledge. The findings of the current study are particularly significant to the several stakeholders that are interested in promoting the complete adoption of the iTax system, including tax consultants, academics, and iTax policy makers. Through marketing and training, the Kenya Revenue Authority must devise plans to boost the number of taxpayers using the iTax system.