Arts and Social Sciences Journal

Social Internal Control Mechanisms and Revenue Generation in Rivers State Internal Revenue Service (RIRS)

Abstract

Akuro PP

This study was meant to examine the effects of internal control mechanisms on revenue generation in Rivers State Internal Revenue Service (RIRS) and was limited to within the time frame of 2007 to 2015. Primary sources of data were gotten and utilized in this study. Results of the analysis of the data revealed that significant relationship exists between internal control and revenue generation in RIRS. The study showed that effective application of Information and Communication Technology is vital in revenue collection in RIRS. Also, the issuance of Tax Identification Number (TIN), Internal Audit and Segregation of Duties as part of the internal control mechanisms were also examined in this study and found them to contribute to improved revenue generation in RIRS as well as blockage of leakages. The study revealed that these mechanisms are periodically reviewed in order to ensure their continuous relevance according to the dynamic nature of the agency and that internal control mechanisms are not a replacement for good management but vitals tools for managerial efficiency. The findings of this study provided the basis for recommendations such as steady update, upgrade and expansion of ICT facilities in the agency, prosecution of tax evaders, extensive monitoring, enlightenment campaigns and customers’ education, and adequate customers’ complaints and feedback mechanisms.