Abstract:
A more and highest possible tax collection and tax compliance are key essential responsibilities of any tax administration. An effective tax system will facilitate domestic revenue mobilization and promote foreign investment. And this has been a challenging work in developed and developing countries but a severe concern to low-income countries and needs advancement in innovation to reduce fraud, tax evasion, and fight against corruption. Rwanda has set e series of reforms to go from manual tax administration until it has gone digital since 2012. Tax administration aims to deliver quality service to taxpayers that were, in turn, encouraging their voluntary tax compliance, payment and compliance, and tax payer's trust in tax administration. Digital systems also lead to safe and proper data storage benefits to RRA and taxpayers' audits. Tax liability calculus was easy; therefore, third parties play a vital role in real information under the tax compliance process. The purpose of this research was to find out the changes in the tax collection system. Data collected from RRA annual reports (2013-2019). Moreover, the analysis ratios used to evaluate the revenues collected throughout the six consecutive years categorized into two sections. Section one dealt with the process of data migration, while the second dealt with tax administration was fully digitalized, thus full system sensitization. With digital tax administration, we have found out that it has reduced high risk of tax avoidance, evasion in as far as digital tax administration the promotion of effective service delivery and lead to a successful role played by the tax administration, we have found out that the vital milestone was made to improve Rwandan tax system with the adoption of technology innovation to facilitate efficiency in tax compliance. However, tax education and awareness information and ICT infrastructures were Key issues in Rwanda. We concluded by indicating a significant increase in tax revenues collected in a row of three years after full sensitization of the system with a constant increment of 1.6% in 2017 and 1.5% on average yearly tax revenues collected.
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