Collection of Revenue

CHAPTER ONE Introduction 1. 1 Background of the believe local anesthetic authority receipts is the money smooth from training of wait on and do commonwealth from individual and separate organization. E really topical anesthetic authority globally has its type of receipts that it collects dep cease upon the environments surrounding it and the type of champion it offers to its resident or citizens. The availability potency and use of finances be the pith of any organization founding and non least topical anaesthetic anaesthetic regimen, in them habitual serve role,(Cola, 2002).Infrastructure, social and community attends in that respect is the secernate of and democratic system concord to Wood et al (1988), evaluateation means the sales value of goods and service that deal been supplied or sell to the customers. According to Mclaney, (1998) receipts is an increase in wealth rising from transaction in goods and services. Nigel et al (1988) noned that the b etter the service the operations kitty stick out, the better entrust the potential to attract customer and so fuck off measureation income.The balance in the midst of capacities overly affects assess income and accept of goods and service therefore time ensures that all demand is satisfied and no taxationation is confuse in any organization. The regime withal abets topical anesthetic anesthetic anaesthetic authorities by giving grants such(prenominal) as road levy funds topical anaesthetic authorities transfer fund and contribution in lieu of range out-of-pocket to the growing demand on topical anaesthetic authorities. As the cable for new and improved services increases for all cardinal(p) services analogous insistency to the citizens.According to Wakhisi (1994), it was stated that the council should seal all loopholes to enable them become monetaryly unchanging by intensifying their receipts aggregation to effectively provide the services ask t o both the give outers and citizens at large. The availability, control and use of finance ar at the core of any organization existence, and least topical anaesthetic authorities, in their public service suffery role. there atomic number 18 growing demands on topical anesthetic authority funding, as the requirements for now and improved services increase local anaesthetic authorities current or day-to-day expenditure atomic number 18 financed from a range of tax receiptss, honorariumments for the provision of services (charges, rent on halalty, planning authorization fees etc. ), commercial rates and exchange political science grants. On the especial(a) benefit is the comprehensive way in which it identifies the funding gap between the expenditure an authority should incur in hark backing its services and the income it should derive from local stems Donughue. 2003). 1. 2Statement of the problem Performance of LAs varies widely. Some clearly argon managing to im prove service delivery and chthoniantake new projects identified as priorities by citizens like road repairs, bridges, water supplies, drainage, grocery store improvements, street lighting. Others be struggling with knightly debts, reducing their efforts to collect local receiptss because of the easier money from LATF, employing ever more(prenominal) staff, increase councilor allowances, and opting for projects with little or no benefit to citizens.R tear downues collected by county and municipal councils include site value, land rent, argona development fund, house rent, markets fees, sight parks fees and line endorses. In al intimately all LAs, there is a huge gap between the formally approved budget and what genuinely happens. The forecasted grosss erectnot be collected, so most LAs run concisely of money. For example the County council of Makueni annual budget report, 1998/1999, 2002/2003, and 2008/2009 financial year indicated that there was a problem in receipts a ccruement.The county treasurer expressed her concern on the cash flow problems the council is facing due to non-payment by debtors making it unavailing to service the escalating debts it owes its creditors. in the segment of engineering and urban planning evaluate income was kshs. 2,733,086 and actual income was kshs. 1,036,726, the department of health and environment evaluate income was kshs. 1,036,729, the department of finance clerk the expected income was kshs. 9,297,777 and the actual income was kshs 1,252,000 and the department of social service the expected income was kshs. 60,834 and the actual income was kshs. 670,000 respectively source (C. C. M Annual Position for the monetary Year 1998/1999, 2002/2003 and 2008/2009). This look for tries to identify the factors that affect revenue accumulation trouble by local authorities in Kenya and commend on what to be done to be able to manage the verbalism of revenue parade by local authorities in Kenya. 1. 3Objectives o f the get hold of 1. 3. 1Main objective The primary(prenominal) objective of this depicted object is to investigate the factors touch on the assembling of revenue by local authorities in Kenya. . 3. 2Specific objectives (i)To investigate the personal effects of revenue collectors on the concern of revenue collection. (ii)To investigate tax nonremittal as a factor affecting revenue collection guidance in local authorities. iii)To investigate how leadinghip affects the trouble of revenue collection in local authorities. iv)To investigate the effects of organizational influence on the forethought of revenue collection in local authorities. 1. 4Research Questions i. How do revenue collectors affect the management of revenue collection in local authorities? ii.How does tax default affect the revenue collection management? iii. How does leadership affect the revenue collection management? iv. What effects does political influence have on the revenue collection management? 1. 5Signifi gitce of the hold This study pull up stakes match the research worker with the knowledge and skills because during the course of the study the researcher leave be exposed to so legion(predicate) challenges, which he depart be special(a) of acquire solutions about, and also it lead widen the scope of his learning accordinglyce at the end he forget have fulfilled an faculty member requirement.Also it pull up stakes benefit Makueni county management who chthonicstands the meaning behind revenue collection by local authorities and c arfully examine its purpose and how to utilize a great deal of attention to selecting strategies to manage the aspect of revenue collection which provide help to fulfill the societys necessitate and other stakeholders. Finally Kenya Methodist University result get reference study materials, which forget be of great use to the students and the lecturers.And also after fulfilling an academic requirement the researcher will get a certificate, which will win credibility of Kenya Methodist University to the public and world at large. The study will benefit the following groups of stakeholders 1. 5. 1 Employees The study will assist revenue collectors to know the importance of collecting all revenues with a high palpate of duty, discipline and honesty pertaining to the services rendered. It will develop team work and collective responsibilities between the management, employees and the residents to develop Makueni district. . 5. 2 Management This work will assist the policy maker to adopt other strategies of enhancing revenue collection so as to reduce accumulation of debts outstanding. It will assist the management to avoid having shortsighted budgetary control system where service department make commitment beyond the approved budget levels. It will assist the management to utilize properly all the revenue collected by giving the required services to the residents so as to motivate payments promptly. 1. 5. 3 The PublicThe study will create awargonness among residents on the services provided, those to be provided by the management and the importance of paying for the services rather than evading payment. 1. 6Scope of the study The study will focus on investigating the management of revenue collection in Kenya. The take aim will be county council of Makueni. The respondent will include revenue collectors and the managers team who are revenue users and they will be met at their work station and their respective offices. The study will be carried out from March to June 2013.Questionnaire and interviews will be used to touch information. 1. 7Limitation of the study The principal(prenominal) limitations of the study will be 1. 7. 1 pass by management Most of top management may not cooperate very much and there might be forgetful information from the staff. 1. 7. 2 Documentation There may be no enough documentation availed for scrutiny, the unveiled ones, may be confidential. 1. 7. 3 shelter Most of the top offices in the city council are usually a no-go zone as they are mostly manned by the NCC security personnel. 1. 8Delimitation This research will be conducted inside the following parameters i.Only collection of revenue factors identified as applicable to this research will be considered for inclusion in the study. ii. Only Makueni County will be included in this research. Other counties in Kenya are excluded. iii. Results of this research will depend upon responses of the revenue collectors, managers team who are revenue users and inferential statistics data depth psychology outcome. 1. 9 Definitions of terms 1. 9. 1 Revenue Collectors The revenue collectors are the employees of the LAs responsible for collecting the different fees and charges of the authority.They should be fitting pros of integrity and sound ethical morals for good management of revenue collection. 1. 9. 2 impose Default Tax default by the relevant institutions and business mounta in leads to uncollected revenue and making the court of the revenues hard. 1. 9. 3 Leadership The way any LA is led by its officials is an inseparable factor on how the revenue is managed. Corrupt leadership has led to the distraction of authorities hence leading to the collapse of many and failure to deliver services. 1. 9. 4 Political InfluenceThis is the influences that satisfy comes mostly from councilor and other government officials to satisfy their own selfish gains finished unofficial ways. CHAPTER TWO 2. 0LITERATURE REVIEW 2. 1Introduction This armhighlights lit so as to find out what other researchers have contributed, and the consummation of their research regarding this field of management of revenue collection in local authorities. The main factors of consideration in this study are also reviewed to recreate out a clear understanding of their effects in revenue collection management. 2. Theoretical review 2. 2. 1 Continuous switch possibility Shone L and Brown (1978) the advocates of the theory of transport deald that, a theory of change is simple, step by step model describing the program inputs and the expected outcomes of your effort. conjecture of change should be a useful tool a lens that gives the management a sharp focus on the steps it take to take, or a strong well placed lever that sewer help move just the right mountain. This theory will draw Makueni County to clarify their assumption about how change will happen in collection of revenue.A general statement of flavourion will not do this for it, because theories of change are not mission statement or bighearted visions. They are exact and somewhat exhaustive plan that immortalize every step, however large or small. Theories of change should be peculiar(prenominal), detailing protagonism actions Makueni County will take and the in take ined results. A detailed theory of change will give a credible, well drawn blueprint for advocacy work and a clear basis for evalu ation of Makueni County much simpler. 2. 2. 2 Theory of planned behavior Theory of planned behavior of Adzen (1988) helps us to understand how we can change the behavior of people.Its a theory that predicts behavior, because behavior can be planned. This theory is a successor of the mistakable Theory of reasoned action (1975) by the same author. Adzen argues that behavior appears to be 100% voluntary and under control. It argues that behavior of others greatly affect how people behave towards a product or company. This theory will help the people concerned with collection of revenue determine the behavior of the concern and come up with ways of how to change their behavior, if its negative , and how to encourage a positive behavior.For instance with effective collection of revenue are probable to change the behavior of the way the local authorities manage the aspect of revenue collection. 2. 2. 3 System approach theory of management According to British researchers from the insti tute of human relations, Katz et al (1996) came up with the theory and viewed on organization as an blossom forth system. In this theory they had the following suggestions first, that the main functions of an organization is to receive inputs or energy from the environments where inputs include material, people, information and finances.In this eccentric local authorities receive revenue from the service users or the residents and other donors. Secondly the inputs received are then converted to outputs i. e. the revenues collected enables the provision of services required by these residents as shown here below. Environment inputConversion outputEnvironment cite Cole (1999) Thirdly, that open systems discharge their output into their environments whereby services that are generated are then taken to the required environment to be used and then generate more revenues and profits, which are fed back into the organization to provide push inputs and the cycle continues.Lastly, one o f the key features of open system is its independency on the environment. County council of Makueni as a system is interdependent with its environment for its existence and stability. Just like a human body the central neuronic system and cardio-vascular system are the major sub-systems and the same applies to county council of Makueni that is divided into sub-system, i. e. the tail fin departments, which are independent of one another and to the environment surrounding them. 2. 3 Empirical review 2. 3. 1 tacks of revenue collectorsAccording to World fix (2000) the local government revenue collection systems are often characterized by a huge number of revenue instruments. However, the main sources of own revenues are usually property rates in urban councils, business passs, market fees and versatile uses charges, often in the form of surcharges for services provided by or on behalf of the local government authority. Nevertheless, experiences from a number of African countries s how that these revenue instruments have serious shortfalls.For instance, property taxes can be very costly to get by (Brosio 2000 McCluskey and Franzsen 2005), and the enforcement of user fees has resulted in widespread resistance to pay from the poorer segments of the urban universe in some countries (Fjeldstad 2004 Fjeldstad et al 2005). Moreover, complex business licensing systems have proved to be major impediments for the start-up and expansion of especially micro and small enterprises (Devas and Kelly 2001 Sander 2003 Pimhidzai and Fox 2011).However, experience shows that when well administered, these revenue instruments can provide substantial and reliable Revenues for urban municipalities. 2. 3. 2Property tax Empirical studies by Serwanga, (1992) on revenue declarements between conglomerate levels of government generally argue that few fiscally significant taxes are more appropriate to local administration than property tax. This is due to the fact that real property is v isible, immobile, and a clear indicator of one form of wealth.Hence, in principle, property tax is difficult to avoid and, if well administered, it can represent a non-distortional and extremely efficient fiscal tool. Property tax as an annual tax on real property is levied in all countries in Africa (McCluskey and Franzsen 2005). normally it is a local government tax, levied mainly in urban areas . clownish properties are often not taxed, although property taxation is being blanket(a) to rural properties in some countries such as South Africa under the terms of the Local Government Municipal Property Rates arrange 6 of 2004 (Franzsen 2007).Where differential rates apply, the tax rates for residential properties tend to be significantly dismay than the rates for commercial, industrial, and government properties, where these are taxable. 2. 3. 3 Business licenses In Africa, the standard mechanisms for mobilizing revenues from businesses have been through licensing. Although the original intent was regulatory, local business licensing has increasingly become simply a revenue source in most places (Lubega, 2000). Typically, business licenses generate between 5% and 30% of local government own revenues in urban councils.In many countries, however, the system has been quite unsatisfactory, often quite inequitable, and has imposed huge be on business, while generating relatively little money. According to Chitembo, (2009) the regulatory aspects of the license system have been largely abandoned. In addition, poor policy build and weak administration mean that license coverage assessment, collection, and enforcement rates are low, leading to poor revenue generation. Thus, many existing business license systems across Africa contain serious defects.These include (Devas and Kelly 2001 385) High compliance cost to businesses, due to multiple licensing and complex procedures Tariff structures that are complicated and do not reflect ability to pay A action idioti c with ineffective regulatory requirements, which provide opportunities for rent seeking Poor administration and evasion, which reduce the tax base and generate inequities and a revenue source that generates relatively little income for local governments. 2. 3. 4 User fees linking payment and service deliveryBrun, Chambas and Fjeldstad, (2012) argue that taxes are not the best mechanism for matching demand and supply of public services. Better links can be achieved through cost-recovery charging systems, which tie the amount paid directly to the amount consumed. By providing a more direct link between citizens contributions and service delivery, such mechanisms may become effective means to recover the costs of service provision, and to produce efficiency in the consumption of the service. Hence, most observers argue that user fees should touch a prominent role in local government finance (Bahl et al. 003 76 Bird 2001). The main economic rationale for user charges is not to produ ce revenue, but to encourage the efficient use of resources within the public sector. When properly externalizeed, user charges provide information to public sector suppliers on how much clients are willing to pay for particular services and by ensuring that the public sector supplies are valued by citizens. Free or subsidized services may result in over-consumption of such services. Moreover, it may prove difficult to target the beneficiaries of free services (Rondinelli et al. 000) Local government authorities commonly experience difficulties in collecting taxes, fees and charges (Bird. 1989). Thus, there are many experiments being carried out to find solutions to make tax collection more revenue productive (Allingham, and Sandmo, (1972). Practices for collection of local taxes range from cases where local government authorities collect the taxes themselves to cases where tax collection is outsourced to private divisors, semi-private partners and the central government.Market co operatives and private companies collecting tax on behalf of the local government are examples. Revenue collection is outsourced to a range of different types of agents within and across councils. A major challenge facing privatized revenue collection in local government authorities is to assess the revenue potential for various tax bases (Serwanga, (1992). Commonly, revenue assessment is conducted on an ad hoc basis, often move over on the previous years reported collection.Substantial underestimation of the revenue potential may imply that actual collection by the agent is substantially higher than what is reflected in the contract. Consequently, there is a risk of ending up in a situation where the agent keeps the substantial helping of the revenues collected, which already seems to be the case in some council (Lubega, 2000). 2. 3. 5 Effect of tax default According to Bahl, & Bird, (2008) taxes are widely perceived to be unfair. The citizens see few tangible benefits in return for the taxes they pay.This situation heightens taxpayers perceptions of development from an unequal contract with government, and may promote tax resistance. Although most taxpayers are unable to assess the exact value of what they receive from the government in return for taxes paid, it can be argued that they have general impressions concerning their terms of apportion with the government. In this context, it can be assumed that taxpayers behavior is influenced by their gratification or dissatisfaction with the terms of trade with government.Thus, if the system of taxes is perceived to be unjust, tax default may be considered as an attempt by the taxpayers to come up their terms of trade with the government. Chon and Reinikka (1999) argue that people engage in tax evasion when the expected benefits(low taxes) are equal to the expected costs(bribes and punishments)This tends to agree with Alongham and Sandmo(1992) who also suggested that a rational individuals choice to evade w ill be based on the expected gains or losses associated with the decision.To further the argument, Bird (1989) asserts that defaulters in most developing countries can realistically assign expected value of zero to the likelihood of being detected and penalized that the more severe the penalty, the less likely it is to be applied which showed a flunk in administration.Contrary to that view, Wentworth et al (1985) asserted that causes of tax defaulting are the exchange, social shed light on and chances available for evasion . Evaders in that study reported that they were not getting value for their money, tax rates were too high and that government did not spend payers money wisely, that the burden of taxes fell on low income and salary earners. 2. 3. 6 Forms of tax evasionAccording to Mwenda (2009), tax evasion can take any of the following forms Failure to report incomes profits or gains otherwise legally chargeable to tax Reporting only part of the income gains or profits Mainta ining morose books of accounts with intent to reduce taxes Making false claims of expenses or allowances or deductions Under declaration of goods for duty purposes and Outright export to avoid payment of duties 2. 3. 7 LeadershipOne of the major issues in governance is show in the fact that citizens continue to demand the devolution of power and resources to local units (Chitembo, 2009). A close scrutiny of the management and mathematical process of existing local authorities shows that most local authorities in Kenya are not only poorly managed, but are also close to financial insolvency. Whilethe central government in Kenya manages plans and develops policies in regard to the whole nations affairs, local authorities tend to have jurisdiction peculiar(a) to the city, municipal, county or town councils (Economic Survey 2005).Naturally therefore, their level of action is quite limited as compared to the central government. In spite of the limits of their action, most local autho rities act as the avenues for implementing decisions formed by central government at the local level however, a review of press reports and accurate surveys undertaken within Kenya hasrevealed that there is disillusionment with the cognitive process, management and competence of local authorities in providing the services that they are mandated to provide (Odhiambo, Mitullah&Kichamu, 2005).It is clear that local authorities are not only failing to provide a satisfactory level of services but are also poorly managed and have departments that are among the most corrupt within the public sector in Kenya. A further indication of the growing dissatisfaction with the services provided by the existing local authorities is seen in the rise of residents associations which are disposed(p) to resort both to court action or to campaigns aimed at withholding of the rates due to councils as a mechanism for compelling local authorities in Kenya to provide services on a regular basis (Odhiambo, M itullah&Kichamu, 2005).Against this background, it is important to make an assessment on the reasons for this all round poor performance of local authorities before appropriate proposals for reformsreforms and improvement are make. 2. 3. 8 Political Influence Performance of the local authorities in Kenya is not only affected by the lack of autonomy from the Ministry for Local Government. The bring down manner of enlisting councilors and personnel is prone to abuse.Since the Local Government make up (Cap 265) allows for the appointment of councilors by the president, oftentimes such councilors are reluctant to pose to the authority of the managers in the local authorities. In situations where the councilors are elected, experiences of political party influence also arise. This difficulty is often reflected in councils in which the political divisions are so sharp that councilors are permanently preoccupied with gaining speedy political advantage over their opponents.In some case s, personnel are employ without the consideration of their ability to perform the tasks at hand. Councilors and executive committees of the local governments were initially engaged in power struggles, rather than focusing on their core functions in their first five years in office. This disputation has prevented a focus on institutionalization and development. However, it is worth mentioning that, for the last several years, the fever of competition subsided mainly due to the increasing understanding of the councilors.Councilors should demonstrate a great degree of responsibility and concurrently work towards a delivery of services, such as the improvement and construction of roads, often in partnership with local communities and some UN agencies (Economic Survey 2005). 2. 4 Research gap From the empirical literature review, it is clear that taxation by local governments is important for raising the required revenue for the local authorities. Management of revenue collection in m ost local authorities in Kenya has not been effective.Very little attempt has been made to improve on revenue collection. Planning the same has not been noble either. In most cases the Audit department which acts as a guard dog of all financial management, specifically revenue collection in various collection centers suffer significantly from shortfall such as proper approach to audit work, lack of experience and planning techniques, lack of professional etiquette, reliance on manual systems and lack of training leading to poor revenue collection Audit which leaves some leakage for misappropriation.Interference from political leaders seriously hampers operations in revenue collection in their wards. There is need to assess the factors that affect the collection of revenue by local authorities in Kenya. Revenue collectors need to use all the pieces of practice of law at its disposal against all tax defaulters and ensure recovery even if it means use of courts of law. This is import ant given the fact that a roach of revenue is being lost through tax evasion and avoidance. Local governments have the mandate to raise their own revenues to finance their activities.However much as the government is said to have sovereign right to collect taxes, nought likes paying taxes and yet everybody appreciates that taxes need to be paid. This drives some persons into the act of tax evasion. Tax defaulting has sound effects on the revenue collection by local authorities. At the same time, there is need to study the specific effects of tax collectors on the management of revenue collection by local governments. Very little research has been done to investigate the effects of leadership on the management collection in local authorities.There is also need to investigate the political influence effect on the management of revenue collection by local governments Revenues for the local authorities have persistently fallen short of targeted due to various challenges in revenue coll ection, tax evasion, poor leadership and political influence in the management of local authorities. no(prenominal) much literature exists in this field. It is this reason that has prompted this research to try finding out the factors that affect the collection of revenues by local authorities hence filling the literature gap in factors affecting revenue collection by local governments in Kenya. . 5 conceptual framework Figure 2. 1 Conceptual framework Independent variable star dependant variable seeded player agent 2013 2. 5. 1 Revenue Collectors The revenue collectors are the employees of the LAs responsible for collecting the different fees and charges of the authority. They should be competent professionals of integrity and sound ethical morals for good management of revenue collection. 2. 5. 2 Tax Default Tax default by the relevant institutions and business people leads to uncollected revenue and making the administration of the revenues hard. 2. 5. 3 LeadershipThe way any LA is led by its officials is an essential factor on how the revenue is managed. Corrupt leadership has led to the misdirection of authorities hence leading to the collapse of many and failure to deliver services. 2. 5. 4 Political Influence This is the influence that satisfies comes mostly from councilor and other government officials to satisfy their own selfish gains through unofficial ways. 2. 6Operationalization In this section the use of indicators that influence the successful outcome of revenue collection process will be identified and used to measure the variable against the parameters.The variables will be measured against the parameters and statistics. For local authorities to achieve its goals, collective goals move between the manager and subordinate should be done. This research will establish whether performance management goals are achieved ensuring employee flexibility and acceptance of the goal set. It will further determine the level of employee empowerment and control against and control against the performance standards and targets as a parameter. The performance evaluation would be measured victorious into consideration the time frame and feedback received.The reward system parameter would be analyzed top measure its impact on employee motivation and commitment. 2. 6. 1 Operational framework Figure 2. 2 Operational framework Dependent Independent Measurements SOURCE AUTHOR 2013 CHAPTER THREE 3. 0 RESEARCH methodology 3. 1 Introduction This chapter discusses the research design, methods and procedures used by the researcher to carry out the study. The research design, target population, render, design, data collection instruments and data abstract methods are explained in this chapter too. . 2 Research design This research will apply descriptive design. Descriptive design involves field survey where the researcher goes to the population of interest to ask certain issues about the problem under the study, Kothari (2000). The design is used to obtain information concerning the current status of the phenomena to take in what exists, with respect to variables or condition in a situation. The inference design uses the existing information available to gather data for psychoanalysis.Research design aims to gather data without any manipulation of the research context, where the researcher has got no control over the variable, Mugenda and Mugenda (1999). 3. 3 Target population The target population of the study in the county of makueni will comprise top managers, middle level managers, lower level managers, operational staffs and treasurers. The categories are represented in the table 3. 1 below. Table 3. 1 Table showing study population categoryTarget populationpercentage Top managers 105% Middle level managers2010% Lower level managers 3015% Operational staffs10050% Treasurers5025%Source Author (2013) 3. 4 Sample design, procedure and size of it The researcher will use stratified random sampling design. The targe t population will be divided into subgroups and respondents picked randomly from the target population. A sample size of 200 respondents will be selected from the five population categories using a ratio of 0. 5 where a total of 100 respondents will be selected to achieve at least 50% of the target population. The sample of respondents from the target population will be as 10 top managers, 20 middle level managers, 30 lower level managers, 100 operational staffs and 50 treasurers.This will make all the respondents in the target population to have equal chance of participating in the study. The participating respondents will then be picked randomly from each sub group and issued with questionnaires. The sample sizes are as shown in the table 3. 2 below. Table 3. 2 Table showing sample size CategoryTarget populationSample ratioSample size Top managers100. 55 Middle level managers200. 510 Lower level managers300. 515 Operational staffs1000. 550 Treasurers500. 525 Total2000. 5100 Source Author (2013) 3. 5 Data collection instrumentsThe researcher will use questionnaires with open and closed ended questions to collect the required data. This is because the questionnaires are easy to administer and gives qick, accurate statistics where a large number of respondents is used. 3. 6 Data analysis The researcher will use descriptive and quantitative data analysis to enable to describe the distribution of data. Frequency and percentage tables will be used to interpret the data and a presentation of the same will be made by use of pie charts and graphs. REFERENCES 1. Allingham, M. G. nd Sandmo, A (1972) Income Tax Evasion A Theoretical analysis, Journal of Tax and Public Economics. Vol. 1 No. 3/4pp. 41-57. 2. Bahl, R. & Bird, R. (2008) Subnational Taxes in maturation Countries The Way Forward. Public Budgeting & Finance, Vol. 28(4), pp. 1-25. 3. Baskin, M. (2010) Constituency organic evolution Funds (CDFs) as a Tool of Decentralized tuition. Overview paper presented the 56th population Parliamentary convention, 10-19 September, Nairobi. 4. Bird, R. M (1989) the Administrative Dimension Of Tax Reforms In Developing Countries. In 5.Brun, J. -F. , Chambas, G. and Fjeldstad, O. -H. (2012) Local government taxation in Africa. Paper prepared for ICTD (draft). (Brighton International Centre for Tax and Development). Chapter 2 (pp. 23-63) in Local government finance the challenges of the 21st century. Second Global Report on decentalisation and Local Democracy. Barcelona United Cities and Local Governments. 6. Chitembo, A. (2009) Fiscal Decentralisation A ComparativePerspective. well-bred Society Representatives Sitting on the Zambian National Constitutional Conference (NCC). Lusaka. . Dillinger, W. (1991) Urban Property Tax Reform Guidelines and Recommendations. Urban Management curriculum Tool (Washington D. C. The World Bank). 8. Etzioni, (1986) Tax Evasion and Perceptions of Tax Fairness A Research Note Journal of Applied Behavior Scient Vol. 2 No. 2 pp. 177-185. 9. Lubega, (2000),Income Tax Evasion In Ugandas Informal Sectors , A Dissertation Submitted by M. A. At Makerere University, Kampala 10. Of Ugandas Experience, 1970-1992 Thesis for M. A EPP Faculty of Economics and Management, Makerere University, Kampala. 1. Serwanga, J. (1992). Government Tax Revenue Decline and retrieval An empirical Analysis 12. Tax Reform In Developing Countries. Duke University Press, shorthorn and London pp. 315-330. 13. World Bank (2000) Entering the 21st Century. World Development Report 1999/2000 (New York Oxford University Press for the World Bank). Yatta, F. and Vaillancourt, F. 2010. Africa. 14. Modern Local Government in Kenya,Nick G. Wanjohi, Konrad Adenauer Stiftung (KAS) and Agency for Development Education &Communication, Nairobi, 2003