2. 2022

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Browsing 2. 2022 by Subject "Digitilization"

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    Effect of Digitalization Effectiveness on Turnover Tax Compliance among Textile Small and Medium Size Enterprises in Eastleigh, Nairobi County
    (KeSRA/Moi Unpublished Research Project, 2022-11) Abdi, Ahmed Mohamed
    Taxes are an important way for both developed and developing economies to raise money for government projects that help them grow. The main purpose of this study was to determine the effect of digitalization effectiveness on turnover tax compliance among small and medium size enterprises in Eastleigh, Nairobi County. The specific objectives that guided the research were: to study the relationship between technological ease of use and turnover tax compliance; to establish the relationship between technology usefulness and turnover tax compliance and to examine the relationship between system security mechanism and turnover tax compliance among small and medium size textile enterprises. This study was grounded on Technology Acceptance Model and Unified theory of Acceptance and use of Technology. Explanatory research design was applied in this study. The target population was textile enterprises operating in Eastleigh. Stratified sampling technique was utilized since the population itself was stratified in nature. Yamane's (1973) formula was used to determine the sample size of 243 textile SMEs. Data was collected using questionnaires and analyzed descriptively. To establish the relationship between study variables correlations and regression analyses were carried out. The study showed that regression coefficient (β = .098, t (171) = 1.343, p>.05) for technological ease of use, implying that a single unit improvement in technological ease of use improves turnover tax compliance by 9.8%. However, this was found to be insignificant (P=0.181>0.05). On the other hand, regression coefficient for technology usefulness was (β = .311, t (171) = 0.002, p<.05); implying that technology usefulness accounts for 31.1% of the variance in turnover tax compliance. This was found to be significant and thus, affirms that technology usefulness have a significant relationship with turnover tax compliance among small and medium size textile enterprises in Eastleigh, (P=0.002<0.05). On system security mechanism, the regression coefficient showed (β = .129, t (171) = 0.151, p>.05), implying that a single unit system security mechanism improves turnover tax compliance by 12.9%. However, this was found to be insignificant (P=0.151>0.05).The study concludes that technology had removed the effort for users to become compliant and they were open to accept new technology that would enable them become compliant. This study recommends that KRA need to ensure that their digital systems are easy to use and useful to taxpayers. KRA also need to ensure that their online system is reliable, functional and effective. This may increase the efficiency and convenience of filing taxes which may lead to positive experience and attitude that would facilitate compliance.
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    Effect of Digitilization on Value Added Tax Compliance among Small and Medium Enterprises in Embakasi Central Subcounty, Nairobi County, Kenya
    (KeSRA/Moi Unpublished Research Project, 2022) Apollo, Cleveland Ochieng
    Technological advancement is a key driver that builds efficiency in organizational processes as it offers cost cutting opportunities. The spread of digital services through capabilities of the internet and Information and Communication Technology has created an opportunity to save on costs of transactions. The motivation of this research lied in the contrasting result and the need to document the Kenyan case in respect to digitalization of a tax system and its effect on tax compliance. Hence, the general objective was to investigate the effect of digitalization on value added tax compliance among Small and Medium Enterprises in Embakasi Central Sub-County, Kenya. The specific objectives were: To establish the effect of online filing procedure on Value Added Tax compliance in Kenya, to determine the effect of use of electronic tax registers on Value Added Tax compliance in Kenya, investigate the effect of digital payment systems on Value Added Tax compliance in Kenya and to determine the effect of Value Added Tax automated assessment system on Value Added Tax compliance among small and medium enterprises in Embakasi Central Sub-County. The study was anchored on these theories: Innovation Diffusion Theory, Technology Acceptance Theory and the Economic Deterrence Theory. This study used explanatory research design. The population of this study was 190 VAT registered taxpayers at Embakasi Central Sub County and sample size of 129 VAT taxpayers. In this study, primary data was obtained through issuance of a questionnaire. To elucidate on interdependence of variables, descriptive and inferential statistics were undertaken. The study findings indicated that online filing, electronic tax registers, digital payment systems, VAT automated assessment systems signficantly affects value added tax compliance with evidence of beta and ρ values of (β1) of 0.286, ρ<0.001 for online filing, while electronic tax register had a beta coefficient (β2) of 0.329, ρ<0.000, digital payment systems had a beta coefficient (β3) of 0.311, ρ<0.000. Lastly, VAT automated assessment had a beta coefficient (β4) of 0.296, ρ<0.000. The study results concludes that online filing, electronic tax registers, digital payment systems, VAT automated assessment systems had influence on VAT compliance. In light of the statistical results and conclusions, it is recommended that digitalization components can be further enhanced to achieve higher levels of VAT compliance. KRA should revamp digitalization to improve capabilities such as widening digital payment systems to include online cheques remittance, real time ETRs and improve the VAT automated assessment systems. More studies may be done in this area to offer more insights on other factors such as Taxpayer behavioral tendencies on tax revenue performance.