QUESTION ONE

Kenya Revenue Authority (KRA) is the strategic institution set up by an Act of parliament in 1995 to collect revenues on behalf of the central government. Its therefore a critical institution on the growth and development of our country Kenya. From time to time, weve heard the institution has failed to meet its revenue target as set by the treasury. Discuss Factors leading to the failure to achieve tax revenue targets and possible solutions to these challenges.

(10 marks)

QUESTION TWO

Fill the following table

Type of Tax

Incidence is on whom?

Impact is on whom?

Is it shiftable (YES/NO)

1.Employment income

2.Value added tax(VAT)

3.Custom duty

4. Corporate income

5. Excise duty

(5 marks)