A Critical Analysis of Effectiveness of Tax Offences Control Mechanisms Under Rwandan Law

• Dedication
  
• Acknowledgement
  
• Acronyms
  
• General Introduction
  
  • i. Background of the study
    
  • ii. Statement of the problem
    
  • iii. Research questions
    
  • iv. Research Hypothesis
    
  • v. Research Methodology
    
  • vi. Objectives of the study
    
    • a. General objective
      
    • b. Specific objectives
      
  • vii. Scope of the study
    
  • viii. Significance of the study
    
    • c. To the researcher
      
    • d. To ULK
      
    • e. To Taxpayers
      
• CHAPTER I. Overview on Tax offences
  
  • I.1. Definition of Tax, Tax Offence and related terms
    
    • I.1.1 Introduction
      
    • I.1.2 Definition of Tax
      
    • I.1.3 Classification
      
  • I.2. Justification of tax
    
    • I.2.1 Economic Stability
      
    • I.2.2 Increase of government revenue
      
    • I.2.3 High employment level
      
    • I.2.4 Fair distribution of income
      
    • I.2.5 Protection policy
      
    • I.2.6 Optimum allocation of Resources
      
    • I.2.7 Restriction of consumption of certain commodities
      
    • I.2.8 Controlling Inflation
      
    • I.2.9 Tax offence
      
  • I.3. Main tax offences under Rwandan tax law
    
    • I.3.1 Consumption Tax Offences
      
    • I.3.2 Income Tax offences
      
    • I.3.3 Value Added Tax violations
      
    • I.3.4 Customs offences
      
  • I.4. Causes of tax offences
    
    • I.4.1 Historical
      
    • I.4.2 Lack of civic sense
      
    • I.4.3 Cash economy
      
    • I.4.4 Complexity of laws
      
    • I.4.5 Complexity of tax system
      
    • I.4.6 Tedious procedures
      
    • I.4.7 High rates of taxes
      
    • I.4.8 Limited resources and capacity of tax administration
      
    • I.4.9 Government regulations and prohibitions
      
    • I.4.10 Tax offenders are not named and published
      
    • I.4.11 Attitudes and perceptions towards taxation
      
    • I.4.12 Corruption among some tax officials
      
    • I.4.13 Low literacy and lack of tax education
      
    • I.4.14 Poor economic development and poverty
      
    • I.4.15 Technological developments
      
    • I.4.16 Unemployment in border areas
      
  • I.5. Negative impacts of Tax offences
    
    • I.5.1 Cost of non compliance to tax offenders and the government
      
    • I.5.2 Honesty loses and offender wins
      
    • I.5.3 Additional costs to honest tax payers
      
    • I.5.4 Loss of Government Revenue
      
    • I.5.5 Distortion of market prices
      
    • I.5.6 Collapse of local industries
      
    • I.5.7 Unemployment
      
• CHAPTER II. A critical Analysis of Control and Prosecution of Tax Offences
  
  • II.1. Rules and Procedures in control of tax offences
    
    • II.1.1 Introduction
      
    • II.1.2 Current rules applied in control of tax offences
      
    • II.1.3 Customs Department
      
  • II.2. Powers to investigate tax offences
    
    • II.2.1 Powers to get information from the taxpayer
      
    • II.2.2 Powers to information from the third party
      
  • II.3. Contradictory and Assessment without notice
    
    • II.3.1 Contradictory procedure
      
    • II.3.2 Assessment procedure without notice procedure
      
  • II.4. Sanctions in case of tax offences
    
    • II.4.1 Sanctions based on the law on Tax procedure
      
    • II.4.2 Additional sanctions
      
    • II.4.3 Administrative Sanctions provided for by Customs law
      
    • II.4.4 Other sanctions not mentioned in the law
      
  • II.5. Settlement of disputes
    
    • II.5.1 Administrative Appeals
      
    • II.5.2 Judicial Appeals Phase
      
• CHAPTER III. Recommendations for improvement
  
  • III.1. Legislative measures
    
    • III.1.1 Simplifying and amending the law
      
    • III.1.2 Strong investigative powers
      
    • III.1.3 Powers to seize of remove materials
      
    • III.1.4 Application of adequate penalties
      
    • III.1.5 Prosecution, Sanctions and Penalties
      
    • III.1.6 Tax amnesties
      
    • III.1.7 Access to third party records and the power to issue summonses
      
    • III.1.8 Indirect Methods of Assessment
      
    • III.1.9 Introducing invoicing/receipting requirements
      
    • III.1.10 Introducing record keeping and accounting codes
      
    • III.1.11 Taxpayer assistance and education
      
    • III.1.12 Providing information, tools to help taxpayers
      
    • III.1.13 Informing taxpayers of high risk areas
      
    • III.1.14 Educating taxpayers to seek invoices from suppliers
      
    • III.1.15 Publicising prosecution cases and penalties
      
  • III.2. Providing opportunities for voluntary disclosure
    
  • III.3. Using informants and tax evasion referral hotline
    
    • III.3.1 Involving taxpayers in consultative forums
      
    • III.3.2 Intermediary assistance and education
      
    • III.3.3 Establishing task force of experts to advise tax RRA
      
    • III.3.4 Cross border activity
      
  • III.4. Stamping out corruption and tackling inefficiency
    
• Conclusion