Tax Dispute Resolution A Matter of Global Concern and Its Impact on Compliance Rwanda as a Case Study
The establishment of the United Nations Committee of Experts on International Cooperation on Tax Matters is evidence of the magnanimity of the need for tax dispute resolution even at global level. This study was carried out to explore and analyze the effect of tax dispute resolution mechanism in Rwanda in relation to on taxpayer’s compliance. From a population of 297, a sample of 170 was selected. The findings from data collected using structured questionnaires and documentation was presented using frequencies and percentages. It was established that there is significant positive relationship between fairness of tax disputes resolutions and tax compliance. The results from primary data revealed that the appeal committee of the Rwanda Revenue Authority (RRA) does not include external tax experts; rather, it is solely composed of only its own staffs who are suspiciously viewed by taxpayers. Respondents also revealed that resolving tax disputes through administrative procedures other than judicial ones positively impacts tax compliance. This was affirmed by more than 80% of respondents. It was concluded that the Rwanda Revenue Authority have to work and put strategies to resolve tax disputes which arise in an independent a manner as early as possible, to positively influence taxpayer’s compliance and reduce costs. The study further recommends to the Authority that tax audits cases have to be reviewed by the independent panel review within the department who has no previous involvement with the audit or case work to review the technical merits of an audit position, before the matter is finalised.
Keywords: Tax, Tax Dispute, Taxation, Tax Payer, Tax Compliance, Avoidance, Tax Dispute Resolution Mechanisms
