Efficiency Of Revenue Collection Research Articles

THE ROLE OF ARTIFICIAL INTELLIGENCE IN ENHANCING TAX COMPLIANCE AND FINANCIAL REGULATION

Artificial Intelligence (AI) has emerged as a transformative force in various domains, including tax compliance and financial regulation. This review explores the pivotal role of AI in enhancing these critical aspects of governance and economic stability. In the realm of tax compliance, AI-driven solutions offer unprecedented opportunities for governments to streamline tax administration processes, detect non-compliance, and mitigate tax evasion. Machine learning algorithms can analyze vast volumes of financial data with remarkable speed and accuracy, identifying patterns indicative of tax fraud or evasion. Furthermore, AI-powered predictive analytics enable tax authorities to anticipate taxpayer behavior and allocate resources effectively for enforcement purposes. By leveraging AI, governments can enhance revenue collection efficiency while minimizing compliance burdens on taxpayers. In financial regulation, AI technologies play a crucial role in monitoring and enforcing compliance with complex regulatory frameworks. With the exponential growth of financial transactions and the increasing sophistication of financial instruments, traditional regulatory mechanisms often struggle to keep pace. AI systems equipped with natural language processing capabilities can sift through immense volumes of regulatory documents and financial data to identify potential violations and assess systemic risks. Moreover, AI-based risk assessment models enable regulators to proactively identify emerging threats to financial stability, thereby facilitating timely interventions to prevent crises. However, the integration of AI in tax compliance and financial regulation also presents challenges and ethical considerations. The reliance on algorithmic decision-making raises concerns regarding transparency, accountability, and bias mitigation. Moreover, the proliferation of AI-driven solutions may exacerbate existing socio-economic disparities, as access to advanced technology remains uneven across jurisdictions and economic strata. While AI holds immense promise for enhancing tax compliance and financial regulation, its implementation must be accompanied by robust governance frameworks and ethical guidelines. Collaborative efforts between policymakers, regulators, and technology developers are essential to harnessing the full potential of AI while safeguarding against unintended consequences. Through responsible deployment and continuous refinement, AI can serve as a powerful tool in promoting fiscal transparency, regulatory effectiveness, and economic resilience.
 Keywords: Artificial Intelligence, Tax, Financial, Compliance, Regulation, Review.

Assessing the impact of corporate social responsibility spending on performance of water supply and sanitation authorities in Tanzania

This paper assesses the impact of corporate social responsibility spending on the performance of water supply and sanitation authorities in Tanzania. Revenue collection efficiency and non-revenue water were used as performance proxies. The study employed a retrospective longitudinal research design with a quantitative approach, utilizing secondary data from 114 water supply and sanitation authorities over five years (2015–2019). Both random and fixed effect estimation techniques were applied to determine the impact of CSR spending on performance. The results indicate a significant positive effect of CSR spending, notably enhancing revenue collection efficiency and reducing non-revenue water. Additionally, control variables such as organization size, age, number of employees, and customer complaints significantly impact performance. This study provides a nuanced understanding of how CSR spending in the public sector, specifically within water supply and sanitation authorities, can improve revenue collection efficiency and minimize non-revenue water. It emphasizes the importance of CSR activities in the water sector and advocates for policies promoting CSR to enhance organizational performance.

The relationship between organizational characteristics and the quality of local government financial statements

This study investigates the relationship between organizational characteristics and the quality of financial statements in Malaysian local government. Organizational characteristics, including status, size, financial stability, tax revenue collection efficiency, and level of competence, were examined to discern their impact on mandatory information disclosure in local government financial statements. Data were collected from 71 local governments in Peninsular Malaysia, representing nearly 74% of the total population, using a combination of secondary data from audited financial reports and official documents, as well as structured questionnaires. The results indicate that tax revenue collection efficiency and the level of competence had a significant positive relationship with financial statement quality. Conversely, organizational characteristics related to status, size, and financial stability did not significantly impact financial statement quality. This implies the greater significance of human resources, precisely tax revenue collection efficiency and account officers’ competence, in shaping local government financial statement quality in Malaysia. These findings support the stewardship theory, confirming the connection between specific organizational characteristics and financial statement quality. However, limitations include relying solely on secondary data and facing certain data collection constraints. Future research can enhance these findings by exploring additional factors through in-depth qualitative or case studies.

The Effect of Information Communication Technology (ICT) on Revenue Generation in Gombe State Internal Revenue Service

This study examined the effect of Information and Communication Technology (ICT) on revenue generation in Gombe State Internal Revenue Service to find out if the application of ICT increased the efficiency of revenue collection. The theory adopted for this study was the Technology Acceptance Model (TAM). The research design used was survey research in which information was gathered from a sample of respondents. The total population of the study was 98 staff of Gombe State Internal Revenue Service who constituted the sample size of the study. The questionnaire was administered using a simple random sampling technique. Data were analysed using average mean score, while the hypotheses were tested using Analysis of Variance (ANOVA) with the aid of Statistical Package for Social Sciences (SPSS). The findings of the study revealed that there is a significant difference in mean between the availability of ICT Infrastructure and an increase in Revenue Collection; that there is a moderate positive relationship between ICT availability and revenue generation in Gombe State Internal Revenue Service; and that there is a correlation Coefficient for the relationship between the introduction of ICT and the ease of doing business in Gombe State Internal Revenue Service. The study recommended, among others, that Gombe State Board of Internal Revenue should ensure an improved ICT infrastructure which includes completion of the fibre-optic network project, provision of adequate computer systems and reliable UPS to all offices for staff.

Financing Municipal Water and Sanitation Services in Nairobi's Informal Settlements

Abstract We test two ways to improve revenue collection efficiency for water and sanitation utilities: (i) face-to-face engagement between utility staff and customers and (ii) contract enforcement for service disconnection due to nonpayment in the form of transparent and credible disconnection notices. Engagement has no effect, while enforcement significantly increases payment. We find no effect on access to water, perceptions of the utility, relationships between tenants and property owners, or on tenant mental well-being nine months after the intervention. These results suggest that transparent contract enforcement was effective at improving revenue collection efficiency without incurring significant observed social or political costs.

Methods to Reduce Outstanding Medical Fees at Public Hospital in Malaysia: An Action Research Project

The aim of the study to solve problems related to revenue collection at Public Hospitals in Malaysia. Using the action research approach, two phases were adapted to review the state of metastasizing outstanding medical fees at one of the public hospitals located at west coast of Sabah and its contributing factors. The secondary data from monthly or annual financial reports, focus group discussions (N = 20), and review of government documented regulations and manuals were gathered in this study. It was revealed that the significant proportion of outstanding medical fees in the public hospital is attributed to non-citizens. The main problems faced include noncompliance with policies and procedures in the revenue collection process; lack of IT-based revenue cycle management; and poor engagement of hospital staff in revenue cycle management. Implementation of an IT-based billing system has improved communication between frontline and backend staff and hence improved revenue collection efficiency. Further collaboration with higher authorities in the implementation of a comprehensive online payment system and to increase insurance coverage for non-citizens via medical and social services are explored.

An Examination of the Rate of Compliance with Property Taxation in Nyandarua County, Kenya

Tax in Kenya has been considered a very complex subject since the times of colonialism. Forced payment of taxes during the colonial period made Kenyans greatly oppose colonial rule. Taxation was one of the major reasons for the struggle for independence in Kenya. In the new constitution of Kenya 2010, Kenya adopted a devolved form of government with 47 counties. Each county requires revenue. Article 209 of the constitution mandates county governments to levy taxes on property owned by Kenyans, especially land. Nyandarua County government tax system design and property owners' perception of paying property tax has proved to be difficult to collect revenue. Tax evasion is very common in Nyandarua County. Nyandarua County government endeavors to raise the levels of revenue collected, but the greatest impediment is property tax evasion. This makes the county government constantly fail to raise targeted revenue. Kenya National Bureau of Statistics (2014) ranked Nyandarua County at position 34 out of 47 counties in revenue collection efficiency in Kenya. Therefore, this study seeks to examine the compliance rate with property taxation in Nyandarua County.
 The study adopted a mixed methods research design to investigate compliance with property taxation in Nyandarua County. The study used purposive and Krejcie and Morgan's (1970) Table for Determining Sample Size to sample out respondents. The researcher sampled 375 property owners, 15 revenue officers and 10 policymakers. To acquire primary data, the researcher interviewed policymakers, revenue officers and Nyandarua County's chief accountant and a focus group discussion was done with property owners. Secondary data were obtained from published books, scholarly works and papers. Data were analyzed both qualitatively and quantitatively. The researcher found out that rate of compliance is low at 28.75%. 
 

Ispitivanje elastičnosti PDV-a u zemljama Beneluksa

Value added tax is a significant tax form worldwide. The importance of this tax is manifested in the scope, stability and efficiency of revenue collection. With respect to macroeconomic conditions and challenges, fiscal authorities have to pay attention to the elasticity of VAT revenues. The paper is aimed at identifying VAT elasticity in the Benelux countries, as well as determining the main macroeconomic factors that affect the changes in VAT elasticity. Empirical results have shown the presence of VAT elasticity in the Benelux countries, as well as a statistically significant impact of gross domestic product, final consumption, unemployment, inflation, government expenditures and standard VAT rate on VAT elasticity for the period 2011-2022.

Influence of Electronic Payment Systems on Revenue Collection Performance in Trans Nzoia County Government Kenya

Trans Nzoia County, like other county governments in Kenya, has consistently failed to collect targeted revenue for the past three financial years, hence the need to evaluate factors affecting revenue collection efficiency. This study aimed to analyze electronic payment systems' influence on revenue collection performance in Trans-Nzoia County, Kenya. The specific objectives were: To determine the influence of electronic fund transfer payment systems, To investigate the influence of mobile payment systems, To establish the influence of electronic billing machines, and To identify the influence of online banking on revenue collection performance in Trans-Nzoia County Revenue Diversification and Resource Based View Theory guided the study. This study adopted a descriptive survey research design. The study utilized the census technique to come up with a sample size of 57 respondents. A questionnaire was the main tool for data collection. Research experts ensured that the content, especially the questionnaire was relevant and appropriate for the study. The study used Cronbach's alpha coefficient to determine the questionnaire's reliability coefficient. The study findings were that: Electronic fund transfer payment systems had a positive and significant effect on revenue collection performance (β=0.170, P = .05), Mobile payment systems had a positive and significant effect on revenue collection performance (β=0.263, P = .05), Electronic billing machines had a positive and significant effect on revenue collection performance (β=0.231, P = .05), and Online banking had a positive and significant effect on revenue collection performance (β=0.213, P = .05) This study concluded that electronic fund transfer payment systems, mobile payment systems, electronic billing machines, and online banking had a positive significant effect on revenue collection performance. Therefore, the study recommended that management should make more attempts to carry out electronic fund transfer payment systems, mobile payment systems, electronic billing machines, and online banking to enhance revenue collection performance.

Piped water revenue and investment strategies in rural Africa

Abstract Viable pathways to universal safely managed drinking water access in rural Africa involve a blend of infrastructure types, service delivery arrangements, and sources of finance. Priorities are shaped by institutional and economic barriers and are often based on assumptions regarding user demand and revenue sustainability. Improved understanding of how alternative approaches affect revenue generated from user payments can enhance long-term viability and repayment capacity of rural piped water services. We analyse more than 3,900 monthly records from operators in Ghana, Rwanda, and Uganda and model revenue patterns for novel service area archetypes. Results indicate on and off premises connections exhibit complementary revenue patterns, with volumetric revenue determined by tariff level rather than connection type and waterpoints with the greatest dispensing capacity generating the most aggregate revenue. The prepaid credit payment approach, which is increasingly promoted to enhance revenue collection efficiency, is not associated with revenue advantages compared to pay-as-you-fetch and monthly billing approaches when tariff level is controlled. These patterns are recurrent at multi- and single country scales and across service areas where public and enterprise-led investment approaches to infrastructure development are taken, suggesting the findings may be applicable beyond the study domain. Infrastructure investment strategies can promote revenue and equity goals through off-site piped water, but more evidence is needed to understand the trade-offs of prepaid credit systems.

Effect of Cashless Management on Revenue Collection Efficiency: A Case of Kisumu County Government, Kenya

The purpose of this study was to investigate the effect of cashless management on revenue collection efficiency: A case of Kisumu County Government. The study aimed at determining the level of electronic point of sale on efficiency of revenue collection. Whether electronic point of sale enhanced easy payment of revenues and improved the revenue collection in the County, whether it enhanced transparency in service delivery. Revenue collection is a fundamental constituent of fiscal policy and administration in any economy. County Governments in Kenya experience a myriad of financial challenges, key among them being low revenues. The budget director's audit reports for fiscal years 2016/2017 and 2017/2018 showed that Kisumu County's revenue was significantly lower than target, especially due to revenue leakage. In addition, in the 2018/2019, its internal revenues fell below the budgeted figure for the same financial year. To counter these losses, the County Government embarked on a cashless payment system in revenue collection. This was to be achieved by computerizing the tax collection system from the Local Authority's Integrated Financial Operations Management System (LAIFORM) to the integrated Financial Management Information System (FMIS). The overall goal was to explore the impact of the cashless payment system and management on the efficiency of tax collection in Kisumu County. The research adopted Technology Adoption Model theory by Davis (1986) and Planned behavior theory by Ajzen (1991). A case study research design which is an intensive description and a holistic analysis of a bounded case was adopted. The study targeted all the 200 staff members from revenue departments at Kisumu County and sampled 60. Stratified sampling technique was utilized. The research utilized secondary and primary data. The primary data was acquired through opened and closed-ended questionnaires distributed among the sampled staff while secondary data was obtained from the County revenue Office financial records. The collected data were analyzed using descriptive statistics and inferential statistics. Descriptive statistics involved the use of mean, mode, standard deviation, frequency, and percentage. Pearson's correlation and ANOVA were utilized to show the relationship between the independent variable (cash management) and the dependent variable (efficiency in revenue collection). The qualitative data from the open-ended questionnaire were analyzed according to the goal setting theme and was presented in the form of tables, charts and graphs. The study findings revealed that use of electronic point of sale enhances easy payment of revenues, improved and increased efficiency of the revenue collection in the County and enhanced transparency in service delivery for customs authority. The study recommended it is essential to create awareness of the existence of the system, how it works, and its benefits among taxpayers to enhance its use and raise compliance level.

An Empirical Investigation into the Relationship between Electronic Tax Management System and Tax Revenue Collection Efficiency in Selected States in South West, Nigeria

Tax revenue generation in Nigeria has received contemporary discuss and debate in accounting literature and this has aroused great concern for the attainment of sustainable development. The attainment of revenue goals have been adduced to the fact that many issues and challenges faced are multiplicity of taxes, non-availability of database, difficulty in keeping proper track records of tax payers or defaulters, complexity in tax compliance and collection and non-payment of tax refunds amongst others. The study investigated the effect of electronic tax management system on tax revenue collection efficiency. The survey research design was adopted for the study and total enumeration sampling technique was adopted. A total of 2670 copies of structured questionnaires were distributed to respondents across the three selected states to illicit responses while 2199 copies were retrieved back which accounted for 82.4% response rate. Reliability ranged between 0.7 and 0.9. Data were obtained through the use of a well-structured questionnaire. Descriptive and inferential (multiple regression) statistics were used for data analysis. The findings revealed that electronic tax management system measured by Perceived ease of use, internet payment system, mobile payment system and electronic billing machine had a significant impact on the simplicity of filing tax return of tax payers (Adj R2 = 0.113, F-stat = 68.343, p < 0.005). The study concluded that electronic tax management system impacted tax revenue collection efficiency. The study recommended that tax policy makers should ensure that the electronic tax system is designed in such a way that it will make the filing of tax return very simple and will motivate tax payers to pay their taxes and skillful personnel should be made to be in charge of the tax management system.

Nexus between Internal Controls System and Effectiveness in Revenue Collection in Energy Utilities in Tanzania

This research examined the nexus between internal controls system and revenue collection effectiveness in energy utilities in Tanzania. Multiple regression analysis was applied to the collected data from respondents. It was revealed that, control environments and control activities have insignificant and positive association with revenue collection effectiveness while risk assessment and monitoring of controls had significant and positive influence to effectiveness in revenue collection. In order to improve revenue collection efficiency in energy utilities and other related public authorities in Tanzania, it is indispensable to support and improve internal controls system like segregation of duties, reconciliations and physical controls so as to bring efficiency in revenue collection. Also, assessment of risk is another control which needs to be undertaken in order to encourage revenue collection effectiveness. For all these controls to be active, monitoring of controls should be highly undertaken on periodic basis. Since our research considered energy sector as the study area particularly at TANESCO in Morogoro region, it is recommended that next studies should take into consideration other sectors and related public bodies.

Financing Municipal Water and Sanitation Services in Nairobi’s Informal Settlements

We estimate the impacts of two interventions implemented as field experiments in informal settlements by Nairobi’s water and sanitation utility to improve revenue collection efficiency and last mile connection loan repayment: (i) face-to-face engagement between utility staff and customers to encourage payment and (ii) contract enforcement for service disconnection due to nonpayment in the form of transparent and credible disconnection notices. While we find no effect of the engagement, we find large effects of enforcement on payment. We also find no effect on access to water, perceptions of utility fairness or quality of service delivery, on the relationships between tenants and property owners, or on tenant mental well-being nine months after the intervention. To counterbalance the increase in payments, property owners increased rental income by renting out additional space. Taken together these results suggest that transparent contract enforcement was effective at improving revenue collection efficiency without incurring large social or political costs. Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.

Indicator of the efficiency of value added tax and income tax collection in Ecuador

This paper outlines a methodology to measure the efficiency of revenue collection by tax administrations. The proposed methodology is aimed in particular at developing countries that do not have enough disaggregated information to measure tax gaps (registration, filing, veracity and payment) using traditional methods. The proposed indices are based on estimations of the structural balances of public finances, and rises in the indices can be interpreted as a comprehensive narrowing of tax gaps. The methodology is applied to Ecuador’s value added tax (VAT) and income tax, producing results that show that a more efficient tax administration leads to revenue growth.

TAXATION OF DIGITAL SERVICES AS AN ALTERNATIVE FISCAL TOOL IN THE CONTEXT OF GLOBAL TRENDS

The article deals with the global practice of introducing taxes on digital services and the possibility of implementation the equalization taxes in Ukraine. The purpose of creating innovations in tax system is the efficiency of revenue collection. The absence of the primary relationship between the competitiveness of the tax system and the introduction of alternative taxes – taxation of digital economy – is defined. Despite the existence of potential shortcomings, including their negative impact on growth and productivity, non-neutrality, possibilities of double taxation, and problems in compliance and administration, it is a challenge of today, a new niche in expanding the tax base, counteracting the erosion of existing tax bases in order to avoid taxation and an alternative source of budget revenue for different countries.

The effect of card payments on VAT revenue in the euro area: evidence from a panel VECM

PurposeA growing amount of micro-data analyses has highlighted the importance of information trails, such as generated by card transactions, for improving tax compliance. Yet, time series evidence indicating a positive effect of card payments on VAT revenue performance has been scarce. This paper revisits the question of the effect of card payments on VAT revenue by using annual and quarterly panel data for the 19 euro area member states, covering the period 2000–2016.Design/methodology/approachA panel VECM is employed in order to address endogeneity issues and to account for common stochastic trends, which, is shown to be crucial in revealing the anticipated positive effect of card use on the performance of VAT.FindingsThe analysis confirms that a higher share of card payments in private consumption increases VAT revenue and the efficiency of revenue collection. Higher gains are estimated for countries with above average self-employment.Originality/valueThe contribution of the paper is twofold. First, to our knowledge it provides the first confirmation of the well-established literature on information trails using aggregate macroeconomic time series in a multi-country setting. Second, it has very timely policy implications, as low-hanging fruit are identified in euro-area economies with much to gain from strengthening the credibility of their fiscal performance, such as Greece.

Measures for Increasing the Efficiency in the Collection of the Revenues of the Consolidated General Buget

Abstract Improving the revenue collection of Romania’s Consolidated General Budget aims to increase the share of revenue in gross domestic product and can be achieved through measures aimed at tax legislation, resources allocated for this activity and institutional framework. Efficiency of revenue collection is the main objective of modernising the Tax Administration System. The process involves intervention to the collection methods. The achievement of the main objectives requires particular attention to the necessary changes in the collection methods used. Improving the revenue collection of the Consolidated General Budget is a priority for the Romanian State as it requires an increase in the funding of domains such as health, education and infrastructure. In this paper we will analyse taxation in terms of procedures, legal and institutional aspects specific to the mechanism for the administration of taxes and charges. Other aspects addressed in this paper are tax evasion, the collection of tax claims through enforcement in Member States of the European Union and mutual assistance to the recovery of tax claims in Romania. From the perspective of the tax revenue collected, the conclusion is that the tax system in Romania has a low degree of efficiency, since the tax burden is one of the lowest in the European Union.

Determnants of Revenue Collection Efficiency and Administration: The Case of Local Government Authorties in Wolaita fZone, Ethiopia

Tax is a pervasive element of economic life around the world. The principal objective of tax is to finance government activity. A relative objective is to accomplish certain social goals. Government use tax as a device to extract money or other valuable things from people and organizations by use of law. The Ethiopian government is no exception. The government of Ethiopia uses the revenues derived from taxation in order to maintain the federal and regional governments’ budgets. The purpose of this study was to identify the factors affecting revenue collection efficiency and administration, the case of local government authorities in Wolaita zone, Ethiopia. The study used descrptive research design to collect and analyze the data. The data collected through structured questionnaires from 110 randomly selected respondents from local government authorities in the study area and the data was analyzed by using multiple regressions. The study concluded that the factors concerned with weak revenue collection efficiency and administration in local government authorities were, low revenue collection efficiency level, weak administration system, the effect of tax evasion and weak enforcement mechanism. Therefore, the study recommended for the local government authorities to improve the revenue collection and administration efficiency by ensuring all eligible tax payers file returns, have tax education programs, register and upgrade individual business, audit, and receivable administer them fairly and manage the associated risk, Enforcement existing law and in this Local government authorities must produce an enforcement procedure and practice manual.

Local Government Internally Generated Revenue And Administrative Costs: A Question Of Efficiency

Internally generated revenue is one the sources of revenue open to the local governments. These revenues are generated within the confines of the local government mostly through services provided to the local population. This source of revenue required some efforts to carryout such as administrative expenses like consultancy fees and stationeries. In the past, little efforts have been geared towards investigating the efficiency of revenue collection and the cost involved, as efficiency is a major criterion in the revenue collection. Therefore, this paper dwells into the relationship between the internal source of local government revenue, and the costs involved in the generation of the revenue to measure the degree of efficiency in the revenue administration. The study used survey questionnaire administered to the revenue section of local governments in North Central Nigeria to seek their opinion on the research question of whether the administrative cost of revenue impacts on the rate of revenue generated. The study applied chi-square statistical method to analyse the result of the questionnaire. From the result, where the null hypothesis was rejected shows that there is a relationship between the rate of administrative cost and revenue generated. Therefore, the study concludes that it becomes necessary for the local government to become more efficient in their revenue generating capacity due to the dwindling nature of funds from the center.