4.2019
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Item Factors affecting tax compliance in Small and Medium Enterprises in Mombasa Central Business District(KESRA/JKUAT - Unpublished research project, 2018) Ngeno, SharonTax compliance is making payment and producing, declaration and submitting tax information to tax authority (KRA), in required format used to assess the level at which a tax payer follows, or adheres to the tax liability that he or she voluntarily or is expected by the tax laws to follow by filling return required by law and paying the taxes arising therein. The Small and medium enterprises In Kenya, forms a larger percentage of taxpayers, an approximation of 34.4% while also providing employment opportunities in the Kenyan market. This study intended on analyzing the factors affecting tax compliance by SME’s in the Mombasa County. Having three objectives: to assess the effect of the taxpayers’ attitude in Kenya on the tax compliance of SME’s in Mombasa; the effects of financial records on tax compliance, the effects of compliance cost and Taxpayers’ Psychological factors- moral values, taxpayers perception to fairness and equity in taxation- moral values, taxpayers perception to fairness and equity in taxation on tax compliance of SME’s. The research study employed three theories economic based theory, psychology theory and economic deterrence theory. A descriptive research design was adopted having a population of 200 SMEs and the sample size was 133 who are divided into three stratum. Data were collected by the use of a structured questionnaire and analyzed using inferential statistics. A regression model using statistical package for social science, the study found out that Financial Records have a strong influence on the compliance of the SMEs, the regression model obtained showed financial records affects tax compliance by 45.2%, and a strong correlation of coefficient r 0.812. The cost of compliance is strongly correlated to the Compliance given by the coefficient r 0.582, supported by the linear regression model obtained whereby; Compliance cost affects tax compliance by 34%. Taxpayers’ Psychological factors- moral values, taxpayers’ perception to fairness and equity in taxation affects tax compliance by 34.1%, a coefficient correlation of 0.808 showing a very strong correlation. The study recommends intensive tax education by KRA where real practical issues are used as illustrations on Financial Records importance, Simplification of tax compliance procedures by the authority to reduce the cost of compliance by the SMEs and Improvement in the equity and fairness in the payment of taxes through a unified and open tax system for the SMEs.Item Effect of macroeconomic factors on tax revenue performance in Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Gisaina, Wilfred MagaraThe “Big Four” development agenda: housing, security, affordable healthcare and manufacturing largely depends on government funding in order for this objectives to be met. Tax collection has to be taken into consideration since in Kenya like other economies it forms the largest source of revenue for the government. Despite Kenya Revenue Authority taking various measures in bid to improving tax collected, such efforts have been fruitless as far as meeting its revenue targets is concerned for the last decade. This poses a major concern on meeting future obligations caused by ever increasing deficits. Targets are set based on the projections of growth in economic activities as measured by macroeconomic indicators performance. The study sought to establish the effect of macroeconomic factors on the tax revenue in Kenya. The study was guided by an objective; to examine the effect of the selected macroeconomic factors on tax revenue performance in Kenya. The selected macro-economic factors included inflation rate, Government spending, and Gross Domestic Product. Causal research design was employed in determining the relationship between the dependent and independent variables. The main source of data was secondary data covering the period of 1991 to 2019. Tax revenue data was obtained from the Kenya Revenue Authority, the inflation rates were obtained from the records of the Central Bank of Kenya, annual GDP growth rates were retrieved from the annual publications of the Kenya National Bureau of Statistics while details of government spending were retrieved from the World Bank’s website. Data analysis was based on linear regression OLS estimation technique. The results indicated that GDP and government spending positively impacted tax revenue whereas, inflation was found to lower tax revenue as revealed by a negative correlation. All the variables were significant at 95% confidence level. Further research should be done on other macro-economic factors individually since the ones mentioned in the study are not the only factors affecting tax collection. The study focused on overall tax collection and not on specific type of taxes.Item The influence of indirect taxes on the economic growth of Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Maranga, Douglas OndiekiThe current study has been triggered by the underperformance by the various tax heads. VAT collections stood at Sh92.64 billion, underperforming the target by Sh18.30 billion, the data shows. KRA collected Sh40.59 billion from VAT on imports, Sh10.29 billion short of the target, while VAT levies on local products were Sh8.01 billion less than the Sh60.06 billion target. Collections from excise duty underperformed the target by Sh8.9 billion to Sh42.8 billion, while duty on imports missed the Sh27 billion targets by Sh1.24 billion. The study was guided by the main objective which was the influence of indirect taxes on Kenya’s economic growth with the specific objectives being to determine the effect of value added tax on Kenya’s economic growth, to assess the influence of excise duty on Kenya’s economic growth and to establish the influence of import duty on Kenya’s economic growth of Kenya. The study was be pegged on the Traditional Tax Handle theory, Keynesian theory and Neo-classical theory. Secondary data will be obtained from the website of the Kenya National Bureau of Statistics, Kenya Revenue Authority and the Central Bank of Kenya. Economic growth proxy was real gross domestic product. Data on the various study variables will be obtained for the financial year 2002 to 2018. The obtained data was analyzed using Microsoft Excel and the Statistical Package for Social Sciences (SPSS) and was presented in graphs, tables and pie charts to enable effective and efficient interpretation. The study showed that there was a positive significant relationship between VAT and economic growth (β=3.176, t= 6.922, p value > 0.00). This implies that a unit increase in VAT is associated with 3.176 unit increase in economic growth. Secondly, there was a negative significant relationship between excise duty and economic growth, (β=-2.346, t= -3.902, p value >0.02). Thirdly, there was a negative significant relationship between import duty and economic growth (β=-5.799, t= -3.599, p value > 0.03), this implies that a unit change in import duty is associated with 5.799 unit decline in economic growth.Item Effect of taxpayer facilitation on value added tax compliance: a case of small and medium scale traders in Nairobi’s central business district(KESRA/JKUAT - Unpublished research project, 2019) Genevieve, Akinyi OcharAs the main source of revenue for governments worldwide, the effectiveness and efficiency of tax collection cannot be gainsaid. However, studies indicate that tax non-compliance is a perennial problem in majority of the countries in the world. The private sector significantly contributes to the Kenyan economy by offering employment to very many people and through tax remittances to the government. Yet, the SMEs which dominate the private sector face numerous tax non-compliance issues. The main objective of this study was to examine effect of taxpayer facilitation on value added tax compliance by small and medium scale traders in Nairobi’s Central Business District. The study was guided by Deterrence theory of taxation and the fiscal exchange theory. The study adopted a descriptive survey design. The sample size was 40 small medium scale traders in Nairobi central business district along Luthuli Avenue. The response rate was 78%. Both primary and secondary data was used where questionnaires were employed to collect primary data while secondary data was obtained from KRA website and other academic materials. Both descriptive statistics and inferential statistics were carried out with the help of the SPSS software. The study established that taxpayer facilitation was very instrumental in value added tax compliance by small and medium enterprises. Based on research finding it can be concluded that customer care, taxpayer education and online filing influences value added tax compliance. The study recommends that KRA should do more taxpayer sensitization to all the taxpayers to ensure that information reach the right people. The study therefore suggested that future studies focus on other large entrepreneur and government agencies for purposes of comparison.Item Factors affecting withholding value added tax compliance among medium taxpayers in Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Gathua, Faith WanjiruRevenue collection bodies across the world have advocated for withholding of taxes due to the benefits that come with it. Withholding has also been found to increase compliance and decreases evasion and underpayment because people don’t notice how much tax they are paying in a withholding system hence there is less sense of anger. However, while this is the case, the Kenya Revenue Authority has been missing the annual VAT targets calling for more efficiency in collection. In 2015, Withholding VAT was re-introduced as a collection measure to bring more people into the tax bracket. This study sought to establish the factors affecting Withholding Value Added Tax compliance among medium taxpayers in Kenya. The study was guided by the following specific objectives: To examine the effect of taxpayer’s knowledge on compliance with VAT withholding among medium taxpayers in Kenya.To analyze the effect of rate of VAT withheld on compliance among medium taxpayers in Kenya. and To investigate the effect of costs of compliance on VAT withholding among medium taxpayers in Kenya. The study adopted descriptive research design. The study targeted all the 1835 firms in the medium taxpayers’ category under MTO mandate as at June 2017. The study sample size of 184 was considered in this study. This study used primary data that was collected through questionnaires. Data analysis was done by use of descriptive statistics and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis. All the analysis was done using the statistical package for social sciences (SPSS Version.24). The study found that Withholding VAT Knowledge and awareness, Rate of VAT withholding and cost compliance significantly influences compliance with Withholding VAT by medium taxpayers in Kenya. Based on study finding, this study recommends that KRA should strengthen its training programs for VAT registered persons and also improve relationship management for its withholding agents’ Further studies can be done to find out the impact of withholding VAT tax on the country’s economic growth. This will give an indication on the effects of withholding VAT tax on the country’s economic growthItem Factors affecting collection of capital gains taxes in Kenya: a case study of property sellers in Embu County.(KESRA/JKUAT - Unpublished research project, 2019) Tado, Cedric OdhiamboThe main objective of the study was to establish the factors affecting the collection of Capital Gains Tax in Embu County, Kenya. The study was guided by the following specific objectives: To investigate the effect of customer service on collection of Capital Gains Tax in Embu County, to assess the effect of automation on collection of Capital Gains Tax in Embu County and to determine the effect of taxpayer education on collection of Capital Gains Tax in Embu County. The study sample size was 50. This study used primary data collected through questionnaires. A pre-test on a different sample was carried out to give a Cronbach’s Alpha correlation coefficient greater than 0.7 for all the variables as a rule of thumb. Data analysis was done by use of descriptive statistics and inferential statistics using standard statistical techniques including Pearson correlation coefficient and regression analysis. All the analysis was carried out using the statistical package for social sciences (SPSS Version.24). Analysis of variance (ANOVA) was used to establish if there was a statistical significance between the observed and expected values with the Pearson Chi square giving the degree significance of the relations, hence establishing the hypotheses. The response rate of the data collection instruments was 96% and the reliability test produced an overall Cronbach Alpha correlation coefficient of 0.801. The study also tested for multicollinearity, autocorrelation and normality. The findings showed that customer service, automation and taxpayer education all had a positive significance on the Capital Gains Tax collection. The study recommended Kenya Revenue Authority to continue to put more efforts into its customer service model and its automation processes as well as increasing knowledge on Capital Gains Tax through sensitizations and stakeholder engagements.Item Factors affecting itax system on revenue collection among small and medium enterprises in Bungoma town.(KESRA/JKUAT - Unpublished research project, 2019) Kamau, Patrick KahuraThe study aims to establish factors affecting iTax system on revenue collection among Small and Medium Enterprises in Bungoma town. The study was guided by the following specific objectives: -.To establish the effect of technical skills and knowledge on revenue collection among small and medium enterprises in Bungoma town, to assess the effect of perceived ease of use on revenue collection among small and medium enterprises in Bungoma town and to analyse the effect of perceived usefulness on revenue collection among small and medium enterprises in Bungoma County, Kenya. The study adopted descriptive research design. The study target population was 1400 Small and Medium taxpayers in Bungoma town. The study sample size was 147. This study used primary data collected through questionnaires. A pre-test on a different sample was carried out to give a Cronbach’s alpha greater than 0.7 for all the variables as a rule of thumb. Data analysis was done by use of descriptive statistics and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis employed in the analysis. All the analysis will be done using the statistical package for social sciences (SPSS Version.24). Analysis of variance (ANOVA) used to establish if there is a statistical significance between the observed and expected values with the Pearson Chi square giving the degree significance of the relations. Findings revealed that the regression coefficient results indicate a positive significant effect between training, perceived ease of use and perceived usefulness and implementation of iTax system. The study recommends that the government should strive to build public confidence in the taxation systems. Trainings on iTax system should be enhanced to benefit more SMEs in submitting tax returns through provision of training on servicing of iTax system and utilization of by KRA to foster compliance levels.Item Factors influencing tax compliance among small and medium enterprises in kisumu city(KESRA/JKUAT - Unpublished research project, 2019) Ochiel, CleopaThis research aimed to define the factors influencing Kenya's tax compliance, particularly focusing on small and medium-sized enterprises in Kisumu City. The factors of this study were the tax rate, the accessibility of tax data and the SME sector's cost of compliance with taxes. The concepts that guided the research were: Ability to Pay Theorem, Gunter Schmolders' sophisticated tax morale theory, and Marc Fleurbaey and Martin Feldstein's The Optimal Taxation Theory. A descriptive technique of study was adopted. The study targeted 451 SMEs out of which 211 of them were sampled. Using a self-administered questionnaire, data was gathered. Consequently, the information gathered was evaluated using statistical method and the study results displayed using graphs and tables. It was anticipated that the research finding would show the factors that affect tax compliance in the informal sector and provide suggestions on how to enhance tax compliance in the industry. The study found out that tax rates, availability of tax information and the costs incurred by the informal sector to be compliant have a postive and significant effect on tax compliance. The study concludes that ax rates, availability of tax information and the costs incurred by the informal sector to be compliant have an effect on tax compliance. The study recommends that KRA should consider reducing the tax rates while widening the tax base so as to increase compliance among the tax payers. KRA should create more awareness among the tax payers as it regards the need to file tax returns and pay taxes. KRA should put in place efforts to simplify the whole process of tax administration.Item Determinants of Residential Rental Income Tax Compliance by Individual Landlords in Nairobi: Case of Dagoretti Division(KESRA/JKUAT - Unpublished research project, 2019) Ndichu, Juliah WacheraPast researchers have identified rental income tax compliance in Kenya to be below 50%. With the ever-growing national budget, rental income tax is seen as an area in which KRA can realize additional revenue to fill the revenue deficits. This study sought to establish the determinants of residential rental income tax compliance by individuals in Dagoretti division. The study employed descriptive research design where data was collected from a sample of 50 landlords using questionnaires. The data collected was analyzed using descriptive and inferential statistics with the help of Statistical Package for Social Sciences version 21 for evaluation of relation between dependent and independent variables. Multiple regression model was adopted. The findings of the study found a significant positive relationship between tax rate, tax knowledge, fines and penalties and cost of compliance. From the study findings it was recommended that through taxpayer’s education the taxpayers should be made to understand that filing the tax returns on a monthly does not amount to them paying higher taxes at the end of the year. Also KRA should cooperate with the ministry of education to introduce tax education in the curriculum, also there should be frequent tax education, and come up with taxpayer education programs with a wide coverage such as the media. In addition, there should be effective and timely communication of changes to the tax laws. Finally, the compliant taxpayers should see their non-compliant counterparts getting punished so that they would see that compliance is a good thing.Item Factors affecting value added tax compliance among commercial building owners in Athi-river town, Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Jimmy, Rose KaniniIn Kenya tax compliance receives a lot of attention from the government and more so when it comes to Value Added Tax which is a consumption tax as high rates of noncompliance have been noted. Records at the Kenya Revenue Authority indicate that, Value Added Tax compliance from commercial buildings in Athi river feel short by about thirty percent in the financial year 2017/2018. At the national level Value Added Tax targets are rarely achieved. In realization of this situation, this study aimed at assessing the Factors Affecting Value Added Tax Compliance From Commercial Building Owners in Athi-River Town. The study had three specific objectives which were to: establish the effect of tax incentives, electronic tax systems and taxpayer education on Value Added Tax compliance from commercial building owners in Athi River Town. This study was grounded by three theories: Optimal Taxation theory, The Economic Deterrence theory and the Diffusion of Innovation theory. The study used descriptive research design and the population of this study was all the 63 commercial buildings in Athi River Town that are registered for VAT purpose. A sample of 54 respondents was picked. The study used both primary data by use of questionnaire and secondary data obtained from relevant materials which represent academic research. Data was analyzed into descriptive statistics and inferential statistics by use us SPSS (20) Data was presented on tables and charts. The finding if the study revealed that tax incentives, electronic tax systems and taxpayer education affects Value Added Tax compliance from commercial building owners in Athi River Town and the study was statistically significant. This study recommends that KRA may Zero rating some goods and supplies is a motivation taxpayer to comply with VAT regulations to promote taxpayers compliance with VAT regulations. In conclusion Tax incentives, electronic tax system and taxpayer education had positive significant effect on Value Added Tax Compliance from Commercial Building Owners in Athi-River Town. Therefore more study may be carried out by using different practices to influence Value Added Tax Compliance.Item The impact of system automation on revenue collection in Kenya revenue authority, Nairobi region : a case study of Kenya Revenue Authority(KESRA/JKUAT - Unpublished research project, 2019) Chebon, Phoebe ChemosopActual revenues and expected revenue always differ with large gap margin resulting in lower than expected revenue collection. While the total tax receipts may be lower compared to full compliance, it may not be lower than under other feasible taxation system. iTax is a modern computer-based assessment and collection software used by the government. It is a computing and accounting system for state revenues which stores all relevant (credit and debit) data in individual accounts in a data base, and thus helps monitor and control all tax transactions. iTax provides a convenient and efficient way to improve revenue collection, transparency in fiscal administration and management of local and national tax authorities. It is important to understand iTax system and its influence on revenue collection. The study therefore aims to establish the effect of system automation on revenue collection in Kenya Revenue Authority, Nairobi Region. The study was guided by the following specific objectives: - to investigate the effect of e-payment on revenue collection in Kenya Revenue Authority, to find out the effect of e-registration on revenue collection in Kenya Revenue Authority and to determine the effect of e-filing on revenue collection in Kenya Revenue Authority. The study adopted descriptive research design. The study target population was 320 Kenya Revenue Authority employees in Nairobi Region. The study sample size was 100. This study used primary data collected through questionnaires. A pre-test on a different sample will be carried out to give a Cronbach ‘s alpha greater than 0.7 for all the variables as a rule of thumb. Data analysis was used by use of descriptive statistics and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis was employed in the analysis. All the analysis was done using the statistical package for social sciences (SPSS Version.24). The study found that there are challenges when trying to use iTax system. The study recommends that KRA should find a way of training users on how to use the system and overcome the challenges of iTax system.Item Impact of excisable goods management system on excise duty performance in Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Malusha, AmosExcisable goods management system regulation was formulated in Kenya to deter counterfeiting, facilitate tracking of goods, enable accounting and facilitate authentication of stamps affixed on excisable goods. However, despite the introduction and use of excisable goods management system, excise duty non-compliance in Kenya still remains high. Therefore, this study sought to investigate the impact of excisable goods management system on excise duty performance at Kenya Revenue Authority. The specific objectives of the study were to find out the effect of excise stamp features, excise stamps application procedure, system installation requirements and verification of stamps on excise duty performance at Kenya Revenue Authority. This study utilized a descriptive research design. The target population of the study was 678 heads of finance departments in registered importers and manufacturers of excisable goods in Kenya as well as staff working in the customs department and domestic taxes departments. This study used stratified random sampling in the selection of the 251 respondents from the target population. This study madeIuse ofIbothIprimary and secondaryIdata.ISecondary data wasIobtained from theIannual reports ofIKenya Revenue Authority.ISemi-structured questionnaires wereIused in thisIstudyIto collect theIprimary data. The researchIinstrumentIgenerated both quantitativeIand qualitativeIdata. Qualitative dataIfromIthe open endedIquestions were codedIthematically and wasIanalyzed by useIof content analysis.IQuantitative data fromIthe closed endedIquestionsIwas analyzed byIuse of bothIdescriptiveIand inferential statisticsIwith the helpIof statistical softwareIknown as theIstatisticalIpackage for socialIsciences (SPSS version 22).IDescriptive statisticsIincluded frequency distribution,Ipercentages,Imeasures of centralItendenciesI(mean) and measuresIof dispersion (standardIdeviation). The dataIwas then presentedIin tables andIgraphs. Further, aIcorrelation analysis wasIused to establishIthe relationship betweenIthe dependent andItheIindependent variables. The study found that excise stamps security features have a positive and significant effect on excise duty performance at Kenya Revenue Authority. The study also found that excise stamps application procedure has a positive and significant effect on excise duty performance at Kenya Revenue Authority. The study established that system installation requirements have a positive and significant effect on excise duty performance at Kenya Revenue Authority. In addition, the study found that verification of stamps has a positive and significant effect on excise duty performance at Kenya Revenue Authority. The study recommends that the management of Kenya Revenue Authority should enhance the features of excise stamps to prevent counterfeiting. In addition, they should establish a competent counterfeiting task force to frequently review the features of the stamps so as to prevent counterfeiting. The study also recommends that the management of Kenya Revenue Authority should reduce the bureaucracies involved in the issuance and application of stamps so as to enhance compliance. Also, the management of KRA should allow taxpayers to offset the systems installation cost from the taxes to be paid. Further, there should be enforcement of the requirements of verification of stamps including adequate light for verification of stamps so as to ensure impartial verification of stamps and identification of counterfeit stamps. The study further recommends that the management of Kenya Revenue Authority should develop training programs on the use of excisable goods management system for both their staff and tax payers.Item Effects of adoption of electronic tax registers on value added tax collection among the manufacturing firms, Nairobi region.(KESRA/JKUAT - Unpublished research project, 2019) Mwangi, Jackline WanjiruValue Added Tax is a tax on spending that was introduced in Kenya in January 1990 to replace the previous tax known as sales Tax. The study looked at the effects of electronic tax registers on value added tax collection among companies under the manufacturing firms at Large Taxpayer’s Office, Nairobi region. The general objective of the study was to find out the effects of Electronic Tax Registers on Value Added Tax collection among manufacturing firms, Large Taxpayers office, Nairobi region. Whereas specific objectives were to find out the effects of efiling on VAT collection, to find out the effects of training of users and the effects of compliance cost on VAT collection among manufacturing firms at Large Taxpayers Office, Nairobi region. The research focused on VAT registered companies under the manufacturing sector at the Large Taxpayers Office. The study was supported by three theories of taxation namely; the prospect theory, ability to pay theory and cost of service theory. The study adopted both primary and secondary data collection method. The sample population was 59 manufacturing firms under the Nairobi region out of the 69 registered companies under the Large Taxpayers Office. The study used a descriptive design to collect secondary data from the data analysis unit, LTO. Data collected was analyzed using Statistical Package for Social Sciences and the study findings presented in the form of tables. SPSS results showed the correlation analysis between the variables while a linear regression analysis explained how each variable affected the other. The finding of the study showed that the predictor variables have a significant influence on the Value Added Tax collection. The finding revealed that the number of monthly returns submitted, number of training of user and compliance cost have a significant effect on the VAT collection.The number of monthly returns submitted have a positive effect towards the VAT collection.The number of training offered to users of the ETR have a positive effect towards the VAT collection. The compliance cost incured while the taxpayer is complying with the guidelines of the ETR law have a negative effect on the VAT collection.It is therefore prudent for KRA to enhance taxpayers training on the use of the ETR which will encourange more filing of the monthly returns which trikles down to more revenue collection.The policy unit should come up with measures of ensuring that the compliance cost is not entirely borne by the taxpayer so as to reduce the effects it has on the VAT collection.Item Factors affecting rental income tax compliance in Kenya: a case of Ongata Rongai town of Kajiado County(KESRA/JKUAT - Unpublished research project, 2019) Munyalo, Wycliffe KyenzeThe purpose of this study was to determine the factors affecting rental income tax compliance among landlords and which if addressed would enhance compliance. The theories of optimal taxation, the classical taxation theory and Keynesian Taxation Theory premised the study. Descriptive research design was adopted with a focus on both qualitative characteristics and rental income tax compliance status. The target population was 635 landlords in Ongata Rongai Town of Kajiado County. A sample of 100 respondents (16%) was selected using convenience sampling technique and interviewed based on a semi- structured questionnaire. The data collected was analyzed using both quantitative techniques with the aid of the SPSS package. The report is presented in terms of pie charts, bar charts and tables. The analysis found that the perception of fairness is likely to influence personal income administration. The study found that the KRA has done great strides in enhancing the awareness of the tax compliance in the Kajiado County. The study concluded that tax knowledge & awareness is a key predictor of tax compliance among Landowners. The study suggests the need for KRA to simplify tax compliance procedures. The study further recommended the need for re-introduction of progressive taxation that includes tax exemption.Item Factors affecting uptake of tax consulting services among real estate taxpayers in Mombasa Central Business District(KESRA/JKUAT - Unpublished research project, 2019) Laboso, Erastus KipkiruiThis study sought to establish the factors affecting uptake of tax consulting among real estate taxpayers in Mombasa Central Business District. Although there has been significant growth in tax collection by over 48% from year 2011 to 2015, the contribution by landlords represented by real estate agents has been very low despite all the efforts by government taxing all Kenyans to support the development of the economy by paying their fair share of taxes. Different aspects of tax advisors as a variable in compliance between revenue authorities and taxpayers were examined. The study aimed to investigate on the overall factors affecting tax consulting among real estate taxpayers. This comprised of cost of tax consulting services, taxpayer education and fines and penalties with a view to check on how it affects the overall compliance of real estate taxpayers. The study adopted three theories: economic theory, psychological theory and fiscal theory. The study adopted cross-sectional research design. Data was collected through administration of questionnaires to 300 respondents after which quantitative analysis was used to analyse the data collected. The study findings indicated that taxpayer’s education has a significant effect on the uptake of tax consulting among the real estate firms in Mombasa Taxpayers Education was found to have 0.430, this implies that a unit increase in taxpayers’ education on compliance and taxation matters affects the uptake of consulting by 0.430. The study concluded that sanctions have improved the uptake of tax consulting among the real estate firms in Mombasa and this is shown by coefficient r explaining the relationship between Sanctions with the uptake of the tax consulting which was 0.648, this indicated a strong positive correlation between the variables. Cost of consulting negatively affects the uptake of tax consulting correlation analysis obtained a moderate Negative correlation between the cost of Tax consulting with the uptake of tax consulting, the coefficient of correlation r for cost of Tax Consulting was r=-0.393. The study recommends on the following; extensive taxpayer education to be carried out to equip the businesses with the basic and necessary knowledge on the requirements of tax compliance. Enforcement of the sanctions on the firms which are non-compliant will improve on compliance. There should be regulation on the fees charged by the tax consultancies so as to improve on the levels of tax compliance through uptake of tax consulting.Item Factors affecting tax compliance by small and medium enterprises in Meru town, Meru county(KESRA/JKUAT - Unpublished research project, 2019) Gatobu, Lesley KathureTaxation is the main source of revenue for government funding and therefore all efforts must be made by governments to ensure accurate and efficient collection. The aim of the study was to determine whether tax fines and penalties, tax knowledge and education and perceived opportunity for tax evasion variables have an impact on tax compliance among SMEs in Meru Town area. A sample size of 97 was picked and data collected using a self-administered questionnaire. The study found 96.6% of Kenyans feel the tax rates are high and in many forms which hinder compliance. Inadequacy or lack of tax information tailored to be understood by the tax payers contributed to the inability and/or inaccurate calculation on tax payable by the SMEs affecting 82% of the respondents. The SMEs view that there are few tax evasion opportunities they are aware of but 44.8% agree most business don‟t report taxes fairly and under declaring increases profits. The findings of the study further revealed that the three variables under study do influence the tax compliance at P<0.05. The dependent variables account for 47.7% of the variability in the independent variable, tax compliance, indicating tax knowledge and education, perceived opportunities for tax evasion and tax fines and penalties can explain 49.6% of factors influencing tax compliance. Understanding the underlying factors and tailoring tax information dissemination and collection approaches would greatly improve taxpayers‟ tax compliance level, which would improve revenues collection providing resources for improved government services. The study recommends increased taxpayer education; enhance surveillance and monitoring to increase compliance.Item Firm characteristics and value added tax compliance on construction firms in Kenya: a survey of Starehe sub-county, Nairobi Kenya.(KESRA/JKUAT - Unpublished research project, 2019) Mumo, Susan MwikaliIn countries all over the world, tax is considered an important source of revenue for financing development projects and hence governments must make sure that tax revenue is efficiently and accurately collected. One of the main challenges that face tax authorities is the inability to make sure that taxpayers comply fully with tax system regulations. Therefore, to develop strategies to improve tax compliance, governments needs to understand the main factors contributing to noncompliance. As such, the main objective of the research is to establish the effect of firms’ characteristics on VAT compliance among the construction firms in Nairobi County. The research sought to examine the effect of firm ownership, firm age and firm size on VAT compliance in construction firms in Kenya. This research employed a descriptive research design. The target population for the research was therefore 480 construction firms within Nairobi County. Sample size was determined through the Slovin's Formula. The sample size was selected from the target population through use of stratified random sampling. Secondary time-series data was used in the present study and covered a period from 2014 to 2018. Data on firm age, firm size and firm ownership was obtained from the individual construction firms, which data on VAT tax payment was gathered from KRA. A data extraction checklist was adopted in gathering the second hand data. The research then used both descriptive and inferential statistics with the help of Statistical Package for Social Sciences version 24 for data analysis. Descriptive statistics included computation of frequencies, mean, standard deviation and percentage. The association between the study variables was determined using correlation and regression analysis (inferential statistics). Correlation analysis was employed to establish the strength of the association between dependent and independent variables while multivariate regression analysis determined the relationship between the elements or variables under investigation. The results were shown in form of graphs, charts and tables. The study found that firm size (total assets) has a positive and significant effect on VAT compliance in construction firms in Kenya. The study found that firm age (number of years in existence) has a positive and significant effect on VAT compliance in construction firms in Kenya. The study revealed that firm ownership (composition of share ownership of directors) has a positive and significant effect on VAT compliance in construction firms in Kenya. The study recommends that the management of Kenya Revenue Authority should develop training programs on appropriate and extensive record keeping, financial management as well as an optimal coordination of their resources so as to improve their compliance. In addition, Kenya revenue Authority should create awareness on the VAT compliance among startups and young businesses in the construction industry. The owners and managers in should understand that their ownership structure is relevant and therefore concentrate on legal avenues to manage their VAT tax burdensItem Factors affecting value added tax among small and medium enterprises in central business development, Nairobi.(KESRA/JKUAT - Unpublished research project, 2019) Ngachah, JaneThe study aim to investigate factors affecting value added tax among small and medium enterprises in Central Business Development, Nairobi, Kenya. The study was guided by the following specific objectives to establish the effect of tax compliance costs on revenue performance at KRA, Kenya, to determine the effect of level of tax knowledge on revenue performance at KRA, Kenya, to assess the effect of tax rates on revenue performance at KRA, Kenya. The study adopted descriptive research design. The study target population was 1200 Small and Medium taxpayers in CBD Nairobi. The study sample size was 120. This study used primary data collected through questionnaires. A pre-test on a different sample was carried out to give a Cronbach‟s alpha greater than 0.7 for all the variables as a rule of thumb. Data analysis used descriptive statistics and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis employed in the analysis. All the analysis used statistical package for social sciences (SPSS Version.24). Analysis of variance (ANOVA) was used to establish if there is a statistical significance between the observed and expected values with the Pearson Chi square giving the degree significance of the relations, hence establishing the hypotheses. Kenya revenue Authority should offer on a regular basis technical support to traders which will help them familiarise with tax systems in order to facilitate collection of VAT. Technical support will help traders reduce the transaction time in serving their clientele and transparency in service delivery. There is also need for training of traders from system developers on a regular basis in order to help the taxpayer in filing and paying of VAT. The management of Kenya Revenue Authority should be frequently organising workshops and seminars whereby they will be training the traders on proper use of tax systems in order to facilitate collection of VAT. The traders must have sufficient training in order to fully deploy use of tax systems to facilitate VAT collectionItem Effect of electronic tax system on rental income tax compliance by landlords in Eldoret Central Business District, Kenya(KESRA/JKUAT - Unpublished research project, 2019) Terer, Brenda ChelangatTaxation is a major source of revenue for most countries in the world. Therefore, governments and the revenue bodies continually put in place reforms and policies that seek to enhance revenue collection. In spite of many reforms by Kenya Revenue Authority, a lot of revenue still remains uncollected. This leads to failure by the authority to meet its annual revenue collection targets. The prime goal of this research was to determine the effect of electronic tax system on rental income tax compliance by landlords in Eldoret Central Business District. The specific objectives were to investigate the effect of electronic registration, to determine the effect of electronic filing and to find out the effect of electronic payment on rental income tax compliance by landlords in Eldoret central Business district. The study was guided by economic deterrence theory and Behavioral theory. An explanatory research design was adopted. The target population was 332 of which a sample of 181 was chosen using simple random sampling method. Primary data was collected using a questionnaire while secondary data was obtained from existing relevant sources of taxation. Regression analysis was conducted to analyze the collected data. The findings indicated a positive and significant relationship between electronic tax systems and rental income tax compliance by landlords in Eldoret Central Business District. It was established that the effect of electronic tax registration on rental income tax compliance by landlords in Eldoret Central Business District is positive and statistically significant. It was also established that the effect of electronic tax filing on rental income tax compliance by landlords in Eldoret Central Business District is positive and statistically significant. The findings also revealed that electronic payment systems have a positive and statistically significant effect on rental income tax compliance by landlords in Eldoret Central Business District. Based on the findings, the study recommends that Kenya Revenue Authority should create more awareness among the landlords in Eldoret Central Business District in order to enhance the understanding of using electronic tax systems which can in the long run improve rental income tax compliance thereby improving tax revenue. The study also recommends that Kenya Revenue Authority should hold workshops in Eldoret and train the landlords on the usage of electronic tax systems which can still improve rental income tax compliance thereby improving tax revenue in future.Item Effect of debt management strategies on revenue collection in Kenya Revenue Authority(KESRA/JKUAT - Unpublished research project, 2019) Sheikh, Ibrahim UmukaltumaIn Kenya, high tax debt limits the government’s capacity to raise revenue required for recurrent expenditure purposes and development. Besides the increasing needs for financial resources, tax compliance remains low. The KRA is currently faced with the challenge of enhancing its tax collection efforts, henceforth; the authority has adopted different debt management strategies such as tax penalties, tax collection by suit and tax waivers. Despite the authority’s efforts, the country’s tax debt has been increasing over the years. Thus, the current research sought to investigate the impact of debt management strategies on revenue collection in KRA. The specific objectives of the study were to determine the effect of tax penalties, tax collection by suit and tax waivers on revenue collection in KRA. The research used an explanatory research design. The target area of interest was all the 58 staff working in KRA, West of Nairobi station as well as 27 clients served in a day.Stratified random sampling technique was employed for a representative sample selection. The size of the sample was 42 respondents while the needed data for this research was retrieved from primary and secondary sources. The researcher obtained the data from KRA annual reports while the questionnaires were used to collect primary data. The research instrument generated quantitative and qualitative data. Qualitative data analysis was coded thematically for ease of understanding and presented in prose form. Descriptive and inferential statistics were adoptedfor analysis of quantitative data through the aid of statistical package for social sciences (SPSS version 22). Descriptive statistics comprised of mean, frequency distributions, standard deviation and percentages. Graphs and tables were used to present the findings for easy understanding and comparison purposes. The researcher made use of a correlation and regression models to deduce the existing association between the dependent and independent variables of study. The research showed that tax penalties significantly affected revenue collection in KRA. The also established that tax collection by suit significantly affected revenue collection in KRA. The results also revealed that tax waiver significantly affected revenue collection in KRA. The research recommends that KRA should develop user friendly revenue collection system, appropriate regulations and rules and increase human capital to enhance tax compliance which ultimately results to improvement in revenue collection. Moreover, the study found that the KRA should offer continuous onjob training, coaching and mentoring as well as outdoor training to enhance its staff competency skills consequently leading to improvement in revenue collection. Further, the research showed that the study recommends that the KRA should streamline waiver process, encourage the use of iTax platforms and adopt favorable tax waiving policies so as to encourage debt payment thus improving on revenue collection.