Effects of Revenue Generation on Tax Auditing in Sarajevo, Bosnia and Herzegovina

Abstract

Revenue generation is crucial for the financial sustainability and functioning of organizations and governments. The study sought to examine the effects of revenue generation on tax auditing in Sarajevo, Bosnia and Herzegovina. Tax auditing refers to the process of examining and reviewing tax-related records, financial statements, and other relevant documents to ensure compliance with tax laws and regulations. Tax authorities may prioritize audits of high-revenue-generating taxpayers or sectors, potentially overlooking smaller taxpayers or sectors that may still pose a risk of non-compliance. Tax authorities can ensure that revenue generation efforts are balanced with maintaining taxpayers' trust and encouraging voluntary compliance. The study utilized the descriptive research design. The target population was 180 businesses in Sarajevo, Bosnia and Herzegovina.  The research did sampling of 140 participants that were selected from the target population of 180 businesses in Sarajevo, Bosnia and Herzegovina. Questionnaires were utilized to gather the data. The study concluded that a comprehensive evaluation of existing practices, policies, and resource allocations within the tax authority is necessary. This evaluation should aim to establish a balance between revenue generation goals and the maintenance of a robust and fair tax auditing process. A well-balanced approach to revenue generation and tax auditing is crucial therefore, this requires collaboration between government authorities, taxpayers, and other relevant stakeholders to ensure a fair, transparent, and effective tax system. It was recommended that there should be allocation of sufficient resources, both financial and human, to support audit activities which includes recruiting and retaining qualified auditors, equipping them with the necessary tools and technology, and providing ongoing professional development opportunities. Invest in advanced data analytics tools and technologies to improve the efficiency and effectiveness of tax audits. Keywords: Revenue Generation, Tax Auditing, Bosnia and Herzegovina