International Journal of Financial Management and Economics
Vol. 2, Issue 2 (2019)
Influence of enforcement measures on tax debt revenue realization case of Kenya revenue authority
John Kimutai Langat and Wycliffe Ombasa Kiame
Tax debts affect the economy of a country negatively hence provision of service constrained. Tax enforcement measures are important component in debt revenue collection and recovery because they directly affect the amount of revenue a country collects within a certain period of time. The study sought to establish the effect of enforcement measures on tax debt realization in Kenya. Specifically the study sought to assess the effect of issuance of Agency notice, use of distrain actions, use of charge and security on immovable property and use of court suits as an enforcement measures on tax debt realization in Kenya. To achieve these objectives, the study adopted a descriptive research design. The study relied on secondary data that was obtained from the monthly, quarterly and yearly debt reports from Kenya Revenue Authority spanning for the last 11 years from 2006 to 2016. Correlation and regression analysis showed a statistically significant positive relationship between the enforcement measures and debt realization. The use of Agency notice as an enforcement measures since it had a strong positive relationship (r= 0.662, p>0.05). The regression model was significance with p-value of 0.000b which is less than 0.05 significance level. In line with fostering compliance, the study recommends the use of Agency notice efficiently to improve debt realization since it had the highest positive coefficient.