Effectiveness of Rwandan Law of Tax Administration in addressing Tax Offences

Dedication

I dedicate this research work to my children Charlotte and junior, my Dear mother, sister and brothers and my honest and pertinent friends who stood by me when I needed them.

Acknowledgement

The success and accomplishment of this research work stems from efforts and dedication offered by many individuals and institutions whose support was either direct or indirect. I thank all of you for your devotion, generosity and mercy to complement my labours in making my education successful.

Esteemed acknowledgement is attributed to Rwanda Revenue Authority, my employer for allowing me to further and diversify my studies while performing my usual duties.

I acknowledge the Kigali Independent University (ULK) particularly the Faculty of Law for the quality training accorded to me for the past four years. The efforts of both academic and non-academic staff in organisation and implementation of the faculty agenda are much appreciated. I acknowledge the support and guidance that was offered by the Dean of Faculty of Law whenever I approached him. The skills attained will facilitate perfection in my professional career. Special thanks go to Mr. ABIJURU Emmanuel, the Supervisor of this research work for his wise and kind guidance. His genuine cooperation encouragement and simplicity enabled me to accomplish my work in a calm and convenient environment. I wish to thank him sincerely for his precious availability. His assistance and his advices have been particularly helpful. Your devotion and commitment towards the success of this work will always be valued.

I owe much tribute to the Almighty God who gave me a life worthy living. With much regard, I thank late Dad and loving Mother for their endless love. I equally thank my Loving Sister and brothers who were always by my side when things turned the other way round. Thank you indeed for being there when I needed you. You have been special friends to me.

Special consideration is accorded to all my classmates and friends.

Special thanks also go to my colleagues at work for being so friendly and supportive during this period.

KABERA Charles

Acronyms

RRA: Rwanda Revenue Authority

RIEPA: Rwanda Investment and Export Promotion Agency

MAGERWA: Magasins Généraux Au Rwanda

General Introduction

i. Background of the study

Rwanda, like any country in the world, aims at national development. Development cannot be attained without financial resources. Yet, we realize that every year a lot of revenue escapes national treasury due to tax evasion and related offences.

The actions of taxpayers -- whether due to ignorance, carelessness, recklessness, or deliberate evasion -- as well as weaknesses in a tax administration mean that instances of failure to comply with the law are inevitable. Therefore, tax administration should have in place strategies and structures to ensure that non-compliance with tax law is kept to a minimum^1(*).

With the growth and increasing globalisation of businesses (including the increased mobility of capital and rise of e-commerce), the opportunities for taxpayers to commit tax offences are expanding, prompting the need for the tax administration to continually update and broaden the strategies it uses to deal with these offences.

The background to this work is to establish the extent to what the Rwanda tax administration law has addressed the problem of tax offences.

* ¹ Managing and Improving Tax compliance: Centre for tax Policy and administration