Effect of Corporate Governance on Tax Revenues Collection in Rwanda: A Case Study of Musanze District (2016-2019)

Abstract

The aim of this study is to investigate the effect of corporate governance on tax revenues collection in Rwanda. The major objective of this study is to find out how poor accountability can contribute to the negative failure on tax revenues collection in Musanze District of Rwanda; to establish the extent of how low transparency can contribute to lack of worthy trust to the companies in the particular area.

A Sample size of 360 respondents were arrived at using proportionate stratified sampling technique. The study gathered primary data through open and closed end questionnaires. Majority of companies have failed to recognize the importance of good governance that would have enabled them to manage the companies so well. The study was set out to analyze the extent to which corporate governance has effect on tax revenues collection in Musanze. This study analyzed the effect of corporate governance on tax revenues collection in Rwanda, a case study of Musanze District 2016 to 2019.Corporate governance will produce increase of tax revenues collection in Rwanda and the study concluded that there was variation of 52.3% on tax revenues collection in Rwanda was due to changes in accountability, transparency, fairness, responsibility and government policies and laws check at 95% confidence interval. The study recommends that things like lack of experts, lack of leadership skills, lack of transparency, lack of fairness and poor management as far as corporate governance is concerned which obviously affect the expansion of many companies in Musanze District, Northern Province thus government should give training curriculum, an entrepreneurship skills training, leadership skills training in order to help most of the companies to achieve their goals and objectives.