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Browsing Research Projects by Subject "ADR"

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    Factors influencing adoption of Alternative Dispute Resolution Mechanism in tax management amongst medium taxpayers in Nairobi County, Kenya
    (KESRA/Moi University, 2020) Ngoiri, Mary Wanjiru; Dr. Nekesa, Marion; Dr. Sang, Jane
    In Kenya, ADR was formally recognized with the promulgation of the Constitution in 2010 under Article 159(2). However, despite the benefits associated with ADR, its use in resolution of tax disputes is low, especially in areas outside Nairobi and Mombasa as indicated by the ICPAK (2017) report. Therefore, this study aims to determine the factors that influence the adoption of ADR mechanism in tax management in Kenya. The specific objectives of the study included: to assess the influence of perceived benefits on the adoption of ADR mechanisms in tax administration in Kenya; to examine the influence of perceived ease of use on the adoption of ADR mechanism in tax management in Kenya and; to examine the influence of ADR knowledge and awareness on the adoption of ADR mechanism in tax management in Kenya. The study was anchored on the conflict resolution theory, social influence theory, theory of reasoned action and unified theory of acceptance and use of technology. It employed explanatory research design and the target group was 2526 medium taxpayers registered by KRA, in Nairobi County. Simple random sampling technique was used to sample the population and the sample size constituted 385 medium taxpayers’ companies that were represented by their managers. Primary data was collected using questionnaires. Data analysis was conducted using regression analysis. Regression results Regression results (β=0.877, p=0.000) showed that perceived benefits of ADR had a positive and significant influence on adoption of ADR. Additionally, perceived ease of use of ADR had a positive and significant influence on adoption of ADR (β=0.277, p=0.000). The results also showed that perceived ease of use of ADR had a positive and significant (β=0.279, p=0.000) influence on adoption of ADR. The overall model was significant as supported by an F statistic of 167.568 and the reported p value (0.000<0.05). Based on the findings the study concluded that perceived benefit of ADR affects ADR adoption. A positive attitude towards ADR use can increase the rate of ADR adoption. Further, the study concluded that perceived ease of use of ADR. Further the study concluded that perceived ease of use of ADR affects the use of ADR. ADR is time effective, which increases the number of people adopting this method. The study also concluded that creating ADR knowledge increases ADR adoption. Therefore, investing in ADR awareness programs may positively influence ADR adoption. The study recommended that the government of Kenya should develop and implement a policy that makes it mandatory for all the companies to solve tax cases using the ADR mechanism in the first instance before proceeding to the court. Taxpayers should embrace ADR in resolution of tax disputes by allocating more resources and building capacity of their employees. Tax companies should invest more funds in research and educate their clients on the importance of adopting the ADR methods in tax dispute resolution.