Taxation system and tax evasion in Rusizi district, Rwanda

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Kampala International University. College of Economics & Management
The study investigated “Taxation System and Tax Evasion in Rusizi District, Rwanda”. The targeted population was 662 of five selected sectors which were Kamembe, Gihundwe, Mururu, Bugarama, and Muganza sector of Rusizi District. From the targeted population, the sample size of 249 was drawn. Rwanda Revenue staff and business owners included basing on the research objectives which were (1) the determinants of demographic characteristics of the respondents in term of: Gender, Age, Education level under business and none business skills, Number of years running a business, whether the business is registered or not; (2) The extent of taxation system in Rusizi District; (3) The level of Tax Evasion in Rusizi District and (4) The significant correlation between the variables. Descriptive research design, means and Pearson correlation coefficient were applied to analyse the findings. The findings indicated that the majority of respondents in Rusizi District were women (52.6°h) and 57.8% aged between 30-40 years, 63.0% and 36.9% have certificate and diploma qualification under business field and under none business skills respectively, results indicated that a big number of respondents 36.9% have 1-2 years experience in doing business and 48.2% of the business is registered. The extent of taxation system in Rusizi District was rated highly on the overall mean range of 2.95 and the level of tax evasion indicated that it was high by the mean range of 3.16. Positive significant correlations between taxation system and tax evasion (the sig. value 0.000>0.005). It was recommended that more research on tax evasion should be conducted; Business people should be provided with basic if possible advanced skills on taxation law. In addition to this, RRA should increase a number of staff to be more effective in tax collection and considering improving where there is weakness.
A Thesis presented to the college of higher degrees and research Kampala International University Kampala, Uganda in partial fulfillment of the requirements for the degree Master of Business Administration (Finance and Banking).
Taxation, Tax evasion, Rusizi District, Rwanda