3.2020

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2620

Browse

Browsing 3.2020 by Author "Gichimu, Wangechi Alice"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Factors affecting commercial rental income tax compliance in Nyeri town, Kenya
    (KESRA/JKUAT - Unpublished research project, 2020) Gichimu, Wangechi Alice
    In light of the shortfall in revenue collection target in the financial years 2018/2019, this project sought to study the influence of tax knowledge, Perception, Attitude and Deterrence measures on commercial rental income tax. The study concentrated on Commercial rental business and ignore the rest of rental services such as residential, industrial and land services. The problem that besets the rental income tax compliance is long-term showing longstanding negligence among the taxpayers and the tax authorities. A theoretical underpinning of the relevant tax compliance and a sample of empirical literature is also explained therein. The theories used are tax morale theory, the economic deterrence theory and the fiscal exchange theory. The researcher employed a descriptive research design to describe the variables as measured through indicators in a sample of 100 commercial rental owners in Nyeri Town. The research instrument used was closed questionnaire whereby the Likert scale was used to rank the responses both in the pilot and the actual survey. Furthermore, analyses were undertaken using multiple regression method. The study established that there was appositive correlation between taxpayers’ knowledge and deterrence measures with commercial rental income tax compliance. However, a negative correlation was established between the taxpayers’ perception and commercial rental income tax compliance. The study concluded that, tax authorities can help improve compliance on tax payment by educating and creating more awareness to tax payers. The study suggests that the tax authority do proper tax awareness campaigns so as to equip taxpayers with the necessary tax knowledge and reduce the poor taxpayers’ perception about tax compliance. Also further studies need to be done using more variables like technology to establish their effect on level of compliance in commercial rental income tax payment.