Effect Of Fraud Mitigation Strategies On Tax Fraud Among Large Tax Payers In Kenya Revenue Authority


  • Department: Business Administration and Management
  • Project ID: BAM4870
  • Access Fee: ₦5,000
  • Pages: 76 Pages
  • Reference: YES
  • Format: Microsoft Word
  • Views: 368
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The emergence of underground economy which majorly deals with cash has led to the evolution of another category of tax fraud method because this kind of businesses does not leave a trail of any transaction making it easy to evade tax and conceal the practice. Underground economies are reluctant to transact using electronic funds transfer, credit and debit cards, does not issue invoices or cheques. Tax fraudsters manage to remain one step ahead also by using services of well-heeled lawyers and auditors making the practice of using aggressive tax planning rampant in Kenya where companies and individuals are looking for all means possible to cut their tax expenses. This study therefore intended to find out the effect of tax fraud mitigation strategies among large tax payers on revenue collection in Kenya revenue authority. The study was guided by four specific objectives: to find out the role of staff training, technology adoption, systems surveillance and forensic auditing of internal controls in mitigation of fraud at Kenya Revenue Authority. The study was anchored on the prospect theory, fraud triangle theory and the theory of internal controls. The research adopted a descriptive research design since it obtains complete and accurate description of circumstances. The target population for the study was fraud investigation unit at Kenya Revenue Authority. The study targeted 1540 fraud unit investigation officers in LTO Section. Purposive sampling technique was used and a proportional sample size of 90 staff was used. The study used questionnaires for primary data collection. A pilot test was conducted on 5 respondents which represents 5% of the sample. Reliability and validity of the research instrument was conducted. Cronbach alpha was used to test the reliability of the research instrument while Content validity of the research instrument was conducted by subjecting the research instrument to experts in strategy and taxation. The collected data was processed using SPSS version 21. The study employed quantitative analysis technique. A multiple linear regression model was used to examine the effect of tax fraud mitigation strategies among large tax payers on revenue collection in Kenya revenue authority at 95 % degree of Confidence. Results were presented using tables and pie charts. The study concluded that Staff Training, technology adoption, system surveillance and forensic audit of internal controls had a positive and significant effect on tax fraud mitigation among large taxpayers at KRA. The study recommends the management of Kenya Revenue Authority to regularly hold awareness seminars on tax evasion and fraud. The management should also provide adequate training to their staff so as to ensure they have know-how on the operation of I-tax systems. There is also need for the management to ensure that forensic data analysis using digital analytical tools to detect and combat fraud. The study further recommends for the adoption of fingerprint and cornea identification systems as well as the use of ICT protection tools such as firewalls and computerized control systems to combat fraud. Moreover, the study recommends the administration of KRA to put in place proper monitoring and prevention measures to supervise and ensure there is job rotation in the LTO Section to promote the effectiveness of the workers.  The study recommends the administration of KRA to adopt neutral networks to aid in the prevention of electronic funds transfer fraud. There is also need to ensure that a 24 hour surveillance system is in place to monitor operations and restrict access to valuable information. The organization should adopt the use of close circuit vision for monitoring. Lastly, the study recommends for occasional evaluation of financial statements to ensure that records are fair and accurate. There is need to conduct auditing pro-actively to search for any cases of corruption. The study further, recommends the management of Kenya Revenue Authority to ensure there is an independent line for auditors to report directly to the audit committee so as to enable to express any of their concerns about management. 

  • Department: Business Administration and Management
  • Project ID: BAM4870
  • Access Fee: ₦5,000
  • Pages: 76 Pages
  • Reference: YES
  • Format: Microsoft Word
  • Views: 368
Get this Project Materials
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