1.2022

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Browsing 1.2022 by Author "OKUKU, DANIEL"

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    Determinants of Turnover Tax Compliance Among Small and Medium Enterprises Sector in Kenya
    (KESRA/JKUAT - Unpublished research project, 2022-09-01) OKUKU, DANIEL
    Tax being the key source of revenue that enable government accomplish its mandate to the citizen, low tax compliance among the ever-expanding potential small businesses sector is perceived to be contributing to the perpetual tax revenue performance short of target. The objective of the was evaluate the determinants of tax compliance in the case of small and medium enterprises taxpayers’ sector. Thereby, identify areas of strength and weakness and making recommendation for improving areas of weakness. The main determinants that were studied include; Tax penalties and Fines, automation tax processes and taxpayer education. The Economic Deterrence theory, Fiscal exchange Theory and Prospect theory are the theoretical framework that guided the study. The study adopted explanatory research design. The sample size from the target population computed through stratified random sampling was 234 owners of SMEs in Embu Town from which 192 participants responded. Data collected was subjected to descriptive, correlation and multiple regression analyses. The results of multiple regression analysis indicated that Penalties and Fines positively and significantly influenced Tax Compliance (β1=0.263, p=0.000<0.05); Automation of Tax Processes positively and significantly influenced Tax Compliance (β2=0.293, p=0.000<0.05); Taxpayer Education positively and significantly influenced Tax Compliance of SME’S in Embu County (β3=0.260, p=0.000<0.05). From the findings, the study recommends that KRA should enhance penalties and fines, automation of tax processes and taxpayer education so as realize tax compliance of Small and medium enterprises in Embu County. The study suggest that future studies can evaluate other factors that affect tax compliance among Small informal enterprises in Embu County