Abstract:
This research analyzes the role of change in tax law to create government legitimacy for tax compliance and increasing the revenue collected as to provide Rwanda self financing instead of looking only for outside donors. In particular the research explores the history of tax compliance in Rwanda, reviewed the measures taken by Rwanda Revenue Authorities to create legitimacy for improving tax compliance , how these can increase revenue collected and how these can be a tool for Rwanda self financing.
Some of taxpayers don’t understand what should be their contribution on Rwanda Budget, however it is time for Rwanda self financing as amount of revenue from donors have reduced, thus great need for high level of legitimacy for tax compliance in order to increase revenues. The findings suggest that tax is the important determinant of the Rwanda revenue. Therefore government legitimacy for tax compliance will increase the revenue of Rwanda , which would allow Rwanda to accomplish its activities as planned. This would reduce dependence of Rwanda on donors for loaned funds, as well as increasing self financing.
In addition, RRA would enhance penalties for non-compliance, the research will underline the effect of tax law changes for creating government legitimacy to increase tax compliance as an important tool for self financing.
