2. 2022

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Browsing 2. 2022 by Subject "Automation"

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    Determinants of Tax Compliance among Residential Income Earners in Embakasi South Sub-County, Nairobi, Kenya
    (KeSRA/Moi Unpublished Research Project, 2022-06) Kihuha, Luciah Wanjuhi
    In as much as there is exponential growth in the real estate sector, this growth hower does not match with the tax revenue generated from the collection of monthly residential rental income tax. There are several attributable factors to the noncompliance in this sector, and these factors affect revenue collection in different ways. The study, therefore, investigated factors affecting tax compliance among residential income earners in Embakasi sub-county Nairobi. Three specific objectives guided the study to establish the effect of automation of services, taxpayer perception, and level of awareness on tax compliance among residential income earners in Embakasi south sub-county Nairobi. Residential income reports indicate that less than half of property owners and developers comply with residential income tax requirements in Nairobi City County. Despite the tremendous growth from real estate in Embakasi south subcounty, the corresponding tax collection from the sector has remained very low. The contribution by residential income earners has been very low despite all the efforts to enforce residential income tax policies. In Embakasi, several residential owners are under review, which has formed the need for undertaking this study. The study was guided by economic deterrence theory and the ability to pay theory. The study adopted an explanatory research design. The target population was 11,501 residential income earners in Embakasi, South Nairobi. A sample size of 386 respondents was selected using Yamane's formula. Primary data was collected using structured five-point Likert scale questionnaires. Statistical tools for both descriptive and inferential statistical data were applied to evaluate variations as manifested in the variables and test for hypotheses. The findings of the study indicated that the independent variables had a statistically positive significant effect on residential income tax compliance; thus, automation of services (β1=0.362, p=0.000<0.05), taxpayer perception (β2=0.243, p=0.000<0.05) and level of awareness (β3=0.382, p=0.001 <0.05). The results concluded that service automation, taxpayer perception, and level of awareness positively and significantly affected residential income tax compliance. Based on the study findings, the Kenya Revenue Authority should enhance the automation of services for online registration, online filing, and online payment of tax liabilities to improve income tax compliance among earners of residential rental income. Future research was suggested on other factors not covered by this study but could potentially impact tax compliance across other economic sectors.
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    Factors affecting Residential Rental Income Tax Compliance among Property Owners in Kenya : A Case of Gatundu South, Kiambu County
    (KeSRA/Moi Unpublished Research Project, 2022) Mwema, MaryAnne Wanjuhi
    Taxation is a major source of revenue for the Government. Therefore, taxpayers in Kenya are required to comply with various laws set aside by the Kenyan Government when it comes to payment of taxes. This study sought to determine the factors affecting Residential Rental Income Tax compliance among property owners in Gatundu South, Kiambu County, Kenya. The specific objectives of this study were to determine the effect of automation of service on Residential Rental Income Tax compliance among property owners in Gatundu south, to establish the effect of taxpayer perception on Residential Rental Income Tax compliance among property owners in Gatundu south, to determine the effect of tax audits on Residential Rental Income Tax compliance among property owners in Gatundu south, To establish the effect of stakeholder sensitization on Residential Rental Income Tax compliance among property owners in Gatundu south. The theories that supported this study were Economic deterrence theory, Theory of Technology Acceptance, Ability to Pay Theory and Fiscal Exchange Theory. A descriptive research design was adopted. The target population comprised 1298 residential property owners in Gatundu South. A sample size of 297 respondents was selected using a random sampling technique. The primary data was collected by the use of questionnaires. The results revealed that Automation of services, taxpayer perception, tax audit and stakeholder sensitization caused a variation of 61.9% (𝑅 2 =0.619) Regression analysis was conducted and the findings revealed that automation of services on Residential Rental Income Tax compliance was statistically significant with (β1) of 0.229 and p value of 0.002 which is less than 0.05. Taxpayer percetion on Residential Rental Income Tax compliance was statistically significant with (β2) of 0.390 and p value of 0.001 which is less than 0.05 . Tax audit on Residential Rental Income Tax compliance was statistically significant with (β3) of 0.287 and p value of 0.000 which is less than 0.05. While stakeholder sensitization on Residential Rental Income Tax compliance was statistically significant with (β4) of 0.204 and p value of 0.000 which is less than 0.05. The study then concluded that on automation of services, taxpayer perception, tax audit and stakeholder sensitization that all independent variables had a significant relationship with rental income tax compliance. The study recommends that policy maker should formulate policies that can improve compliance levels of tax payments by Kenyan property owners. This will help the government raise more domestic revenue from tax collection which will be used in realizing the government’s goals. Further studies may be conducted to determine the effect of compliance cost on residential rental income tax compliance.