The effect of electronic tax register system on the duration of value added tax audit in Kenya

Abstract

In the effort to reduce tax evasion, KRA introduced the use of the Electronic Tax Registers (ETRs) by traders. These devices have aided in many ways such as reduction of tax evasion and reduction of the time taken by auditors to assess the records maintained by traders in relation to VAT. This study sought to assess the effect of the ETRs on the duration taken by KRA auditors to examine and assess the records maintained by the traders with an aim of detecting any tax evasion. Primary data was used, which was collected through the use of questionnaires which were filled in by KRA ETR auditors. 40 respondents were selected using random sampling method. Frequency distribution tables, bar graphs and pie charts were used to present the data. The results of the study were that the use of the ETRs has significantly reduced the duration taken by VAT auditors and the respondents recommended the continued use of the ETRs by the traders.