3.2020

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Browsing 3.2020 by Author "Juma, Andrew Muriayi"

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    Effect of Tax Enforcement strategies on Domestic Taxes in Kenya
    (KESRA/JKUAT - Unpublished research project, 2020) Juma, Andrew Muriayi
    The study sought to find out the effect of tax enforcement strategies on domestic taxes in Kenya. Specific objectives were the effect of charge/security on domestic taxes, effect of court suits on domestic taxes in Kenya and effect of agency notice on domestic taxes. The study was justified by the increasing external debt over the years so as to raise sufficient funds for development, despite the revenue collected by Kenya revenue authority. The rise of debt over tax revenue collected in Kenya is an indicator of the ailing economy that needed to be corrected urgently. Kenya revenue authority needs to make domestic tax enforcement strategies and implement them efficiently to eradicate this menace. The study was anchored on lending credibility, fiscal exchange and agency theories. The researcher used secondary data that was collected for fifteen years between the years 2005 to 2019. The researcher conducted the diagnostic tests that included normality test, multicollinearity test, autocorrelation test, stationarity test and heteroscedasticity test. The data was analysed using descriptive and inferential statistics. The study found that charge placement, court suits and tax agency notices explained 88.2% of the variations in the income tax revenue and also, they were statistically significant to explain income tax revenue. The use of agency notices and income tax revenue was positively and significantly related (β=.047662, p=.018). In addition, a positive and significant relationship was found to exist between the court suits and income tax revenue (β=.073142 p=0.008). Besides, charge placement was positively and significantly related to income tax revenue (β=.467721, p=.0.027). The study recommended government (KRA) should emphasize much on the usage of agency notices, court suits and charge placement since they were all positively related to income tax revenue. The study further recommended that the public should submit their full taxes on income earned and request any clarification wherever they are not sure of what to do and this would increase the revenue collection significantly.