2. Post Graduate Diploma

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Browsing 2. Post Graduate Diploma by Subject "Capital allowances"

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    Effect of Capital Allowances on Financial Performance of Manufacturing Firms listed in Stock Exchnage in Kenya
    (KESRA/JKUAT - Unpublished research project, 2020) Nduati, John
    The objective of this research study was to establish the effect of capital allowances on financial performance of manufacturing firms in Kenya. The objective of the study was answered using three research questions which revolved around Industrial Building Allowances (IBA), Investment Deduction Allowance (IDA) and Wear and Tear Allocations (WTA), and how each affected financial performance of manufacturing firms in Kenya. The study was based on three theories that provided the theoretical background of this research study. This was followed by the review of existing empirical literature for each variable and a conceptual framework of the same. In order to come up with the research gaps, critique of existing literature as advanced by different scholars was carried out and discussed at length. A summary was then drawn from the literature review. The study adopted a quantitative descriptive design, and all nine manufacturing firms listed in the NSE formed part of the population. A survey for all nine manufacturing firms listed on the NSE was performed between 2010 to 2019 and information gathered by uniform information collection type. Data was also drawn from prior economic reports and tax returns filed with the Kenya Revenue Authority for 2010-2019. The information gathered was evaluated using various regression models to identify the connection between capital allowances and financial performance.
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    Effect of Tax Incentives on Rental Income Tax Performance by Kenya Revenue Authority in Mombasa
    (KESRA/JKUAT - Unpublished research project, 2020-11) Githae, Catherine Njeri
    The general objective of the study was to investigate the effect of tax incentives on rental income tax performance by Kenya Revenue Authority in Mombasa. The study focused on the following variables; capital allowance incentives, tax rate and tax holiday incentives as the independent variables and rental income tax performance by Kenya Revenue Authority as the dependent variable. The study was guided by the following theories; Adams Smith canons of taxation theory, tax discrimination theory and Neo-classical economic theory. This study adopted a cross section survey research design as it was suitable to describe the data at a specific point of time on the effect of tax incentives on rental income tax performance by Kenya revenue authority in Mombasa. The target population under this study were 137 employees of Kenya Revenue Authority in Mombasa regional Office. simple random sampling technique was used to select the sample size of 102. A pilot study was undertaken on 10 of the respondents to test the reliability and validity of the questionnaire. Primary data was collected using questionnaires. Quantitative data was analyzed using SPSS version 25. Descriptive analysis measures such as frequency, percentage, mean and standard deviation was used in data interpretation. Regression analysis was used to examine the effects of the independent variables; capital allowance incentives, tax rate, tax holiday incentives and rental income tax performance (the dependent variable). The R2 analysis was used to measure the goodness of fit of the model being assessed. Correlation analysis was used to determine the strength of relationship between the variables. The study found out that there was a positive and significant relationship between capital allowance incentives and rental income tax performance. Further, the results revealed that there was a positive and significant relationship between tax rate and rental income tax performance. Lastly, there was a positive and significant relationship between tax holiday incentives and rental income tax performance. Based on the findings, the study concluded that capital allowance incentives, tax rate and tax holiday incentives have a positive and significant effect on rental income tax performance. The study recommends that the tax authority should introduce a policy of carrying over investment allowance that is not utilized in the current year to the subsequent year as an advantage to the residential property owners to reduce their tax liability. Further, the government should consider lowering the tax rates to enhance collections. Lower tax rates make it less attractive to evade taxes as opposed to high rates. Lastly, a tax holiday amnesty must be compatible with the purposes of an income tax system.