Abstract:
The Client Relationship Management programme (CRM) is an initiative that aims at providing quality services to clients. The programme was adopted by the Malawi Revenue Authority (MRA) to enhance tax compliance. MRA experienced low tax compliance over the years from 2011. Therefore, MRA introduced CRM to enhance tax compliance. The CRM was introduced in large taxpayer section in 2015 with intention to achieve satisfied taxpayers. In this regard, this study was informed by the Theory of planned behaviour, Fischer`s tax compliance model and the Service quality model. The study aimed at assessing the effectiveness of the CRM programme at the Malawi Revenue Authority. The study employed a quantitative method where data was collected from a sample of large taxpayers in Malawi by using a questionnaire. The sample population was identified by using the Cochran`s formula whereas systematic random sampling method was used to identify the subjects. The collected data were analysed by using STATA 14. Chow test and regression analysis were employed to test the data`s pool ability and statistical relationship, respectively. The findings reveal that effectiveness of CRM programme depends on quality service. The perception of taxpayers on the quality of services provided under the CRM programme attest to the level of tax compliance. Therefore, CRM is an effective programme to drive tax compliance through service satisfaction. In that regard, the study has developed a model that incorporates the four key determinants of taxpayer satisfaction as data management, service indicator actions, and communication mode and service quality. The study recommends the effective application of the determinants to enhance taxpayer satisfaction and subsequently, improve tax compliance and increase tax revenue. Further research may be done on effectiveness of CRM is small taxpayers or particular sector
Description:
The study evaluates the effectiveness of the Client Relationship Management (CRM) program introduced by the Malawi Revenue Authority (MRA) to improve tax compliance among large taxpayers. Using quantitative methods, it found that service quality plays a key role in taxpayer satisfaction and compliance. The study identifies four determinants of satisfaction: data management, service actions, communication, and service quality, and recommends applying these to enhance tax compliance and revenue collection.
