Revenue Collection Research Articles

Transforming Tax Compliance with Machine Learning: Reducing Fraud and Enhancing Revenue Collection

The integration of machine learning (ML) in tax administration has the potential to revolutionize tax compliance, enhancing fraud detection and optimizing revenue collection. This literature review explores the application of ML in tax systems, emphasizing its transformative role in addressing the limitations of traditional, labor-intensive compliance methods. Justification for adopting a literature review approach is rooted in the need to consolidate diverse perspectives, address research gaps, and provide an informed synthesis of existing findings. The study highlights the criteria used for selecting case studies and research papers, ensuring a robust analysis of ML’s ability to automate detection processes, improve risk assessment, and enable predictive analytics for efficient tax administration. Despite its potential, ML adoption is challenged by data quality issues, privacy concerns, technical infrastructure demands, and ethical considerations, which must be systematically addressed. This paper also identifies literature gaps, particularly the lack of balanced discourse, and provides recommendations for overcoming barriers, including enhancing data management practices, adopting ethical frameworks, and fostering cross-border collaboration. By addressing these challenges, ML can equip tax authorities with tools for creating efficient, adaptive, and fair systems. This research underscores ML’s growing importance in transforming global tax compliance, setting the stage for a future of more responsive and effective revenue administration.

Tracing the Success of QRIS Policy Implementation in Surabaya City’s Parking Levy System

This research explores the effectiveness of the Surabaya City Government’s policy on parking levy payments via the Quick Response Code Indonesian Standard (QRIS). The study aims to analyze the policy’s success in increasing Regional Original Income (Pendapatan Asli Daerah or PAD) and enhancing community welfare by improving the payment experience for parking users and supporting efficient management by parking attendants. Using Van Meter and Van Horn’s policy implementation framework, which includes six critical factors—policy standards and objectives, resource allocation, characteristics of implementing organizations, inter-organizational communication, implementer disposition, and socio-political and economic environment—the study evaluates both the facilitating and hindering elements of the policy. A qualitative descriptive methodology was employed, with data gathered through literature reviews, field observations, and structured interviews with key stakeholders, including government officials, parking service providers, and users. Analysis revealed that QRIS implementation has been beneficial in promoting transparency and efficiency in revenue collection, supporting PAD growth. However, challenges such as varying levels of digital literacy among users, limited internet access in certain areas, and reluctance among some parking attendants to adopt digital systems were identified as barriers to optimal implementation. Key findings suggest that the policy’s long-term success hinges on consistent inter-agency coordination, community engagement initiatives to raise digital payment awareness, and ongoing training for parking attendants to improve digital proficiency. The study concludes that achieving sustainable success in implementing non-cash transactions for parking levies requires a holistic approach, integrating community awareness, inter-organizational support, and policy adaptability. This research offers valuable insights for policymakers seeking to improve public service delivery through digital transactions. It highlights the importance of adaptive management in fostering community welfare alongside regional revenue growth.

The Impact of Political Interference in Decision Making on The Performance of Local Government Authorities (LGAS) in Tanzania: Case of Temeke Municipal Council in Tanzania

This study assesses the impact of political interferences in decision-making on the performance of one local government authority in Tanzania, Temeke Municipal Council. Specifically, this research had two aims: the first one was to identify areas where political interference occurred most and the second was to assess the impact of political interferences on the social services delivery performance. In pursuit of the Wilson’s Orthodox theory in realization of classical models, this study adopted a case study research design and quantitative research approach. The study population was 358, comprising administrators and politicians. A simple random sampling method was used to select 97 administrators in the sample, while a purposive sampling method was used to select 1 Director and 91 politicians in the sample of 189 respondents. The data was collected through questionnaires and analysed quantitatively using descriptive analysis, Pearson’s Correlation and multiple regression analyses with the help of SPSS software. The study found that the political interference was statistically significant (with p ≤ 0.05) in hiring of technical experts, revenue collection & expenditure together with developing social services, and taking disciplinary measures. The research also found that the political interference in the decisions of local government namely budgeting and budget allocation, revenue collection and expenditure, developing social services, taking disciplinary measures, and reporting positively influence social service delivery at the Municipality. There were exceptions when it comes to the political interference in the hiring of technical experts as the results show that it negatively affects the social service delivery of the local government. The research concluded that the interference or rather the interaction between the politicians and administrators in the local governments should be guided by laws so as to tap the benefits which lead to the advancement of Temeke Municipality.

Implications of Municipal Revenue Collection on Service Delivery in South Africa: Challenges and Recommendations

In South Africa, citizens have protested against inadequate services provided by municipalities across different provinces. It is argued that most protests were caused by poor service delivery, a lack of community engagement, corruption, mismanagement of public resources, lack of institutional capacity and unqualified personnel. Thus, this study evaluates the difficulties associated with revenue collection and its implications on service delivery. To assess this aim, the study adopted a qualitative research approach. This study reviewed secondary data from different databases. The study keywords were used to search for relevant studies. The study was analyzed using a thematic content approach. Moreover, the study adopted two theoretical frameworks namely; ability to pay and the benefits theory. The key findings of this study include substantial difficulties in revenue collection, which in turn affect the provision of services. Poor service delivery is continuously caused by a lack of sufficient financial resources and ineffective revenue collection mechanisms. This study indicates a significant link between low revenue collection and inadequate service delivery. The recommendations of this study to municipalities include employing qualified officials, creating rebates and discounts for paying consumers, regularly examining critical credit regulations, guaranteeing high-quality service, and boosting revenue collection in light of these findings.

INTELIGÊNCIA ARTIFICIAL, ADMINISTRAÇÃO TRIBUTÁRIA E EFEITOS NA RELAÇÃO ENTRE O FISCO E OS CONTRIBUINTES

The text discusses how artificial intelligence (AI) is transforming various areas of society. In the public sphere, AI is used to perform repetitive tasks, improve decision-making, and increase the effectiveness of public policies through the analysis of large volumes of data in real time. In law, AI automates procedural acts and provides statistical analyses for lawyers and parties, aiding in the selection of procedural strategies. AI also brings challenges and requires adaptations in Public Administration and legal practice, such as the need to balance technology application with the protection of individual and collective rights. In the realm of Tax Administration, AI is used to modernize inspection and collection processes, detect fraud, and optimize taxpayer services, contributing to a significant increase in revenue collection. Despite the great opportunities for innovation and efficiency that AI presents, the use of intelligent systems in tax inspection and collection activities requires careful implementation to ensure respect for taxpayers' rights and constitutional limitations on the power to tax.

The Effect of Law Number 7 of 2021 on Harmonization of Tax Regulations on Fiscal Justice in Indonesia

Law No. 7 of 2021 on Harmonisation of Tax Regulations is a landmark reform in Indonesia aimed at enhancing tax compliance, promoting fiscal justice, and aligning the country’s tax framework with international standards. This study provides a jurisdictional analysis of the law, examining its key provisions, impact on tax compliance, revenue collection, and socio-economic implications. The results show that the law has significantly broadened the tax base, improved tax transparency, and introduced progressive measures to promote equity, including a carbon tax and revised income tax brackets. However, challenges remain in ensuring that the benefits are distributed equitably across all income groups and sectors. The study concludes that while Law No. 7 of 2021 represents a significant step toward achieving fiscal justice, further refinement and support for smaller enterprises are required to fully realize its potential.

INFLUENCE OF CAPABILITIES FOR RESOURCE MOBILIZATION ON THE PERFORMANCE OF THE LOCAL AUTHORITIES IN ZAMBIA

This study examined the influence of resource mobilization capabilities on the performance of local authorities in Zambia, addressing a decade-long performance challenge despite various government interventions. Using a correlational research design with a sample of 736 employees from 116 local authorities, the study tested the hypothesis that there is no statistically significant influence of resource mobilization capabilities on the financial performance of local authorities. Data collected through a structured questionnaire and analyzed using multiple linear regression revealed a significant positive relationship between capabilities for resource mobilization and local authorities' performance (B = 0.272, t = 6.516, p < .001), with the model explaining 63.7% of the performance variance. While local authorities demonstrated strengths in developing annual work plans, they struggled to provide all required public services. The study concludes that resource mobilization capabilities significantly influence local authorities' performance in Zambia and recommends enhancing resource mobilization strategies, improving service delivery capabilities, promoting knowledge sharing among local authorities, investing in technology-enabled systems for revenue collection and management, and implementing standardized performance management practices to address the identified performance gaps and improve overall public service delivery.<p> </p><p><strong> Article visualizations:</strong></p><p><img src="/-counters-/soc/0745/a.php" alt="Hit counter" /></p>

Building a Culture of Compliance: The Influence of Tax Socialization and Inclusion on Indonesian Micro, Small, and Medium Enterprises (MSMEs) Taxpayers

Taxes serve as the cornerstone of any nation's economic framework, functioning as both a regulatory mechanism and a primary source of government revenue. They are indispensable for managing taxpayer behavior, ensuring a steady stream of state income, and financing essential public services and infrastructure development. In Indonesia, the compliance of micro, small, and medium enterprises (MSMEs) is pivotal to the nation's fiscal well-being. This study delves into the factors that influence MSME taxpayer compliance, specifically focusing on the role of tax socialization, tax inclusion, and the involvement of tax volunteers. A quantitative research approach was adopted, involving the distribution of questionnaires to MSME taxpayers in Indonesia. The data collected was then analyzed using SPSS software to test the hypotheses regarding the impact of tax socialization, tax inclusion, and tax volunteers on taxpayer compliance. The findings of this study reveal that tax socialization and tax inclusion positively influence the level of tax compliance among Indonesian MSME taxpayers. Furthermore, the involvement of tax volunteers also has a positive impact on enhancing taxpayer compliance. This study underscores the importance of tax socialization and tax inclusion in fostering a culture of compliance among MSMEs in Indonesia. The positive role of tax volunteers in assisting taxpayers and promoting compliance is also highlighted. These findings have significant implications for tax authorities in their efforts to improve tax compliance rates and enhance revenue collection.

Juridical Implementation of Regional Regulation Number 11 of 2023 Regarding Local Taxes and Levies on the Elimination of Subscription Parking in Tulungagung

The implementation of Regional Regulation Number 11 of 2023 concerning Local Taxes and Levies in Tulungagung District has significantly altered the management of public parking services. This regulation abolishes the subscription parking system and replaces it with a conventional ticket sales system. The accompanying procedural and technical changes aim to streamline operations and enhance revenue collection for the local government. This study investigates the juridical-sociological aspects of the implementation process, focusing on its impacts on local revenue, quality of public services, and citizen satisfaction. Through qualitative analysis involving primary data from interviews and secondary data from documentation and field observations, the research evaluates how the elimination of subscription parking has affected revenue generation and service provision. Key findings highlight a significant decline in revenue from subscription parking but indicate potential benefits in improving service efficiency and citizen satisfaction. Recommendations include continuous policy evaluation and adaptation to optimize regional financial management and public service provision in Tulungagung District.

Water Disconnections and NWSC Performance in Iganga Municipality, Uganda

This study investigates the relationship between water disconnections and bills receivable management at the National Water and Sewerage Corporation (NWSC) in Iganga Municipality. The research uses a mixed-methods approach to analyse customer perceptions regarding disconnections and their impact on revenue recovery. The findings indicate a positive correlation between the disconnection of water services due to non-payment and the financial performance of the NWSC, with the corporation recovering over 100 billion UGX annually from disconnections and reconnection fees. Despite a total billing of 3,049,102,366 UGX for the last financial year, the NWSC managed to collect only 2,728,709,173 UGX, resulting in a collection efficiency of 91%. However, infrastructure issues, economic uncertainties, and customer financial hardships affect overall revenue collection efficiency. Based on these findings, the study recommends enhanced customer engagement, improved infrastructure, flexible payment options, and the use of technology to optimize billing and revenue collection processes

Assessing the Factors for the Effectiveness of the Task Force Staff in Revenue Collection in Tanzania Local Governments Authorities

Recurring challenges in revenue collection and the insufficient revenue collection is pervasive, affecting the financial viability within Tanzania Local Government Authorities (LGAs) prompted this study with a focus on Mpanda Municipal Council. The aim is to assess key factors such as staff training, resource allocation, and community engagement that impact efficiency of task force staff operations. Mpanda Municipal Council was chosen due to its recurring challenges in meeting revenue collection targets and its strategic importance as a rapidly growing municipality with increasing fiscal demands. The study is grounded in both Agency Theory (AT), TAPACO and Resource-Based Theory (RBT). Agency Theory emphasizes the relationship between principals (local governments) and agents (task force staff) in ensuring that revenue collection objectives are aligned, while Resource-Based Theory highlights the importance of internal resources both tangible and intangible in achieving organizational effectiveness. Adopting a pragmatist research philosophy, the study used a convergent mixed-method research design, combining both qualitative and quantitative data to provide a holistic understanding of the research problem. Pragmatism guided the choice of methods, focusing on practical solutions and actionable outcomes. The quantitative data were analyzed using Ordinal Logistic Regression (OLR), which revealed that all independent variables significantly impact revenue collection effectiveness. A population of 75 people with a sample of 63 participants, comprising 46 respondents completed questionnaires while 17 business owners participated in semi-structured interviews. Thematic analysis was used in case of qualitative data. The findings reveal that targeted training programs, adequate resources, and active community engagement significantly enhance the effectiveness of task force staff in revenue collection. The study concludes that improving these areas will result in better revenue generation and financial stability for local governments. It is recommended that local governments increase investment in training, adopt modern technologies, and foster stronger community engagement to reduce reliance on central government funding.

The Role of Trade Officers in Enhancing Local Revenue Collection in Mpanda Municipal Council

The persistent under-collection of local revenues in Mpanda Municipal Council undermines the council's financial autonomy and leads to continued reliance on central government funding. This study aimed to evaluate the role of Local Government Authority (LGA) trade officers in revenue collection as a strategic initiative to diminish this dependency. To address this issue, the study employed a convergent mixed-method design rooted in pragmatism, allowing for the integration of qualitative and quantitative data to provide a comprehensive understanding of the factors influencing revenue collection. The research involved a population of 75 individuals, including personnel from the trade and industry unit, collectors, revenue officials, and business owners within the district council. A sample of 63 respondents participated in the study, with 46 responding to questionnaires and 17 business owners interviewed. Data were gathered through a combination of these methods, analyzed to capture both numerical trends and in-depth perspectives. The findings underscore the critical importance of strategic revenue management practices, well-informed trade officers, and effective revenue supervision in reducing reliance on central government funding. These insights bear significant implications for policymakers and local government officials aspiring to bolster financial self-sufficiency and ensure sustainable fiscal governance in Mpanda Municipal Council. To address these challenges, the study recommends a focus on comprehensive training and capacity-building programs for trade officers to enable them to autonomously manage revenue collection processes.

The Effect of Desk Tax Audit Practice on Tax Revenue Collection among Medium and Large Size Enterprises in Kenya

Purpose: Tax is a major issue of discussion for both developed and developing countries. For there to be significant progress in any nation, the government should look for ways of raising income to meet the needs of its citizens. The main objective of the study was to determine the effect of desk tax audit practice on Tax revenue collection among medium and large size enterprises in Nairobi region, Kenya. The study was guided by Lending credibility theory. Methodology: The target population was 562 employees in the Medium Taxpayer Office and Large Taxpayers Office Nairobi region, out of which 234 was sampled, and 167 respondents managed to fill and return the questionnaires implying a 71.4% response rate. Primary data was collected using structured questionnaires that was filled by employees in Medium Taxpayers Office and Large Taxpayers Office in Nairobi region. The study employed an explanatory research design. Data was then analyzed using descriptive statistics, Pearson’s correlation &regression model and finally Multiple regression model. Results: The study further found that Desk tax audit had a positive and significant effect on tax revenue collection β =0.329 p-value =0.0000<0.05. Recommendation: Based on the findings, the government should consider strengthening desk tax audit practices to enhance tax revenue collection. Policies could be developed to ensure regular and comprehensive desk audits are conducted to identify and address tax compliance issues promptly.

LOST and Found in Walmart: Walmart's Effect on Local Option Sales Tax (LOSTs) Adoption and Sales Tax Revenue

Throughout the period of adoption of Local Option Sales Taxes (LOSTs) by local governments research has found many causes and associations for adoption and utilization of LOSTs. This research explores the impact that the rise of Large Supply Chain retailers, which expanded along much the same timeline as LOSTs, had on the adoption of LOSTs and collection of sales tax revenue. Leveraging LOST adoption along different timelines in three states and hundreds of Walmart openings, a Cox Proportional Hazard Model is used to estimate the impact a Walmart opening has on time to adoption of LOST at the county level. A Difference in Difference with multiple validity and robustness checks is used to estimate the impact on sales tax collection. Results indicate that a Walmart opening has a large impact on the hazard ratio—indicating it speeds time to adoption. Unsurprisingly, this leads to larger sales tax revenue collections by host jurisdictions.

Effect of Tax Morale on Value Added Tax Compliance Among Medium Taxpayers in North of Nairobi Tax District, Kenya

Purpose: Tax compliance is important as it has a direct impact on revenue for most governments around the world. Despite the reforms that the Kenya Revenue Authority has been undertaking to increase revenue collection, it has of late failed to meet its revenue targets, particularly VAT targets. There has also been existence of fluctuations in VAT collection over the past couple of financial years. The objective of the study is to showcase the effect of tax morale on Value Added Tax compliance among medium taxpayers in north Nairobi tax district, Kenya. The study has been guided by the ability to pay theory. Methodology: The study adopted the explanatory research design and primary data was collected using structured questionnaires with closed-ended questions. The total target population was 2,376 VAT-registered medium taxpayers in north of Nairobi tax district, Kenya and the sample size was 342 respondents. Out of the 342 respondents targeted, 274 questionnaires were correctly filled and returned, indicating 80% response rate. Results: The study also found that tax morale had a positive and significant effect on Value Added Tax compliance β=0.173 p-value =0. 016. Conclusion: The study recommends that the government of Kenya should allocate resources towards improving taxpayer services, including helplines, online portals, and advisory services.

Effect of Electronic Tax Invoice Management System on Value Added Tax Compliance Among Tented Camps in Narok County, Kenya

Purpose: Value Added Tax (VAT) compliance is a critical aspect of revenue collection for governments worldwide; however, it has encountered various challenges, the most prevalent being verifying input tax claimed by taxpayers when filing VAT returns. The main objective was to examine the effect of electronic Tax Invoice Management System on Value added tax compliance among tented camps in Narok County. The theory that supports the study was Diffusion of Innovations Theory. Methodology: The study employed explanatory research design, with a target population of 150 tented camps in the Masai Mara National Reserve, out of these, 122 respondents successfully completed and returned the questionnaires, resulting in a response rate of 81.3%. The data was collected through a structured questionnaire. Results: The study found that ETIMs positively and significantly affect VAT compliance β =0.236 p-value =0.012<0.05. Conclusion: The study recommended that The KRA should enhance the Electronic Tax Invoice Management System (ETIMS) to improve VAT compliance among tented camps in Narok County. Future research should be conducted on the effects of taxpayer behavioural factors on VAT compliance.

Effect of Taxpayer Sensitization on Excise Duty Compliance Among Manufacturing Firms in Embakasi West Nairobi County, Kenya

Purpose: Although the implementation of the excise tax has the potential to enhance revenue collection, its contribution to the GDP has remained negligible in comparison to other forms of taxation. Consistently, the total amount of the excise tax collected has been below the set targets. The general objective was to determine the effect of taxpayer sensitization on excise duty compliance among manufacturing firms in Embakasi west Nairobi County, Kenya. The study was supported by the Theory of Planned Behaviour. Methodology: The study adopted explanatory research design and target a population was 416 manufacturing firms in Embakasi West Nairobi. A sample size of 203 was drawn from this population and a response of 173which thus 85% response rate. Primary data collection was employed using closed structured questionnaires based on the study's objectives. The data was analyzed using descriptive, inferential statistics and multiple linear regression analysis. Results: The study showed that taxpayer sensitization positively affects excise duty compliance β=0.270 p-value=0.001<0.05. Conclusion: The government should implement nationwide educational campaigns to inform taxpayers about their excise duty obligations

A systematic review of the extant literature on the Tanzanian e-government services for economic development

This paper investigates the existing Tanzanian e-government services for economic development through a systematic review of the literature. The main objective is to examine researchers’ articles on e-government services towards achieving the Tanzanian economic growth as well as the current issues and trends on e-government globally. Specifically, this study aims to answer three research questions on: what are the functional e-government services in Tanzania? What is the level of Tanzanian e-government service performance? And what are the factors influencing Tanzanian e-government service performance for economic development? A systematic literature search was conducted on four aggregate data sources, which included Google Scholar, ResearchGate, CORE, and Refseek. A combination of search key terms was employed to obtain the data sources from 2015 to 2022. One hundred and five articles were found by the combined search and screened, resulting to eighteen articles that were recommended for the study. Content and Microsoft Excel computer application were used to analyse the screened data sources. The findings reveal that, a number of functional services is offered and considered potential for revenue collection and contribute to the nation's economic development. Nevertheless, Tanzania has improved and dynamically advanced to the transaction level of e-government implementation where the majority of the citizens interact for services and information. However, factors related to the activeness of the platforms, accessibility, usability, infrastructure, security issues, privacy, and technical support services among others, were identified to influence the performance of Tanzanian e-government services and thus call attention to the government in addressing these issues.

Effect of Royalty Payments on Tax Revenue Collection on Multinational Enterprises in Kenya

Purpose: The study sought to investigate the effect of royalty payments on tax revenue collection on MNEs in Kenya. The study was further explained by the accounting, economic and transaction theories. Methodology: The study adopted an explanatory research design and longitudinal research design while a secondary data collection method was used to collect data through content analysis of audited financial statements of a target population of 62 firms listed on the Nairobi Securities Exchange (NSE) in Kenya. The sample of the study was identified using inclusion-exclusion criteria to identify the 28 MNEs that met the sampling criteria for this study over an observation period of 11 years. Results: The study found that royalty payments negatively affect tax revenue collection (????=− 0.0000113, p = 0.025). Conclusion: The study concluded that there is a significant negative relationship between royalty payments and tax revenue collection. This study therefore recommends the government should introduce guidelines on royalty payments, specifically outlining the procedures through which an MNE should claim for deduction of royalty payments, from their incomes.

Interlinkages between public expenditures, non-tax government revenues and corruption in the transition economies

PurposeThis article examines potential impacts of increase in non-tax government revenues and public expenses on corruption for 11 transition economies in the Central and Eastern Europe.Design/methodology/approachThe empirical analysis uses yearly panel datasets and employs second-generation panel data models which take cross-sectional dependency and slope heterogeneity into account.FindingsThe empirical results reveal the fact that there is a strong linkage between public expenses and corruption and a weak linkage between non-tax revenue collection and corruption in the transition economies. We perform the same analysis by using data sets from G-7 countries but do not notice any linkages between those variables.Research limitations/implicationsThe research topic requires further discussion on constitutional political economy to digest the empirical findings. Thus, an extended version combined with political economic approach might be useful.Practical implicationsThrough economic transitions, there might be a linkage between public expenditures and corruption index. Thus, public spending might be controlled by using constitutional economics policies.Originality/valueThis paper is the first empirical work in the literature, which examines if there is a linkage between corruption and public expenditures and government tax income structure by using panel data sets. Moreover, it compares the results from transition countries with those of G-7 countries and provides certain policy suggestions in the context of constitutional economics.