4. 2020

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2617

Browse

Browsing 4. 2020 by Subject "Corporate Tax"

Now showing 1 - 2 of 2
  • Thumbnail Image
    Item
    Effect of Tax Mobilization on External Public Debts in Kenya
    (KESRA/Moi University, 2020) Gacheru, Esther Wambui
    The rate at which Kenya is borrowing has been on the rise in the past five years to harmonize the budget deficit resulting from low revenue collection which cannot cater for the desired expansion of the economy and development of infrastructure. Kenya’s external public debt is on the rise and portrays a state of distress. There is therefore need to examine whether there are threats of debt overhang in Kenya and how tax mobilization can enhance external public debts servicing. Thus the current study sought to investigate the relationship between of tax mobilization and external public debts in Kenya. The study was guided by tax reforms, tax mobilization strategies and how tax mobilization resources as independent variables and external public debts in Kenya as dependent variable. Four major theories guided the study namely theory of tax smoothing, classical theory of public debt, Keynesian debt theory, and Lerner’s theory of functional finance. The study used primary and secondary data. The target population of the study comprised of 1332 domestic taxes department staff in KRA. The study employed stratified random sampling technique in coming up with a sample size of 308 respondents. Descriptive statistics was used in organizing and summarizing the data while regression and correlation analysis were used to test the study hypotheses by establishing the relationships between independent and dependent variable. In regard to primary data the study found that tax mobilization reforms (β1=0.558, p=0.0276<0.05), tax mobilization strategies (β2=0.731, p=0.285<0.05) and tax mobilization resources (β3=-0.620, p= 0.0249<0.05) have a significant effect on the level of external public debt in Kenya. The study concluded that the level of external public debt relies on tax mobilization reforms, tax mobilization strategies and tax mobilization resources. However, in regard to secondary data the results of the regression analysis revealed that the tax mobilization resources were statistically significant (β0=1.308, p= 0.357>0.05). The results imply that for any unit change in tax mobilization resources would lead to a decrease in external public debt by 1.308 units holding all other factors constant. From the findings, the study recommends a multipronged and multiagency approach towards reducing public debt. The Kenyan government should also aim to reduce its recurrent expenditure characterized by huge wage bill that stifles the mobilized revenue.
  • Thumbnail Image
    Item
    Factors affecting Turnover Tax Compliance in micro, small and medium enterprises (MSMEs) sector in Roysambu area in Nairobi.
    (KESRA/Moi University, 2020) Muthinji, Jesse; Dr. Nekesa, Marion; Dr. Kirui, Daniel
    The purpose of the study was to analyze factors affecting Turnover Tax Compliance in micro, small and medium enterprises (MSMEs) sector in Roysambu area in Nairobi. The study was guided by three objectives namely; to determine the effects of economic factors on Turnover Tax Compliance in Roysambu area, to determine the effects of political factors on Turnover Tax Compliance in Roysambu area and to determine the effects of psychological factors on Turnover Tax Compliance on MSMEs in Roysambu area. The problem statement was to assess whether the government efforts to reach small traders by introducing turnover tax was enhancing tax compliance among MSMEs. The study was guided by economic theory, social influence theory and theory of reasoned behavior. The study will greatly benefit the government of Kenya since it will contribute to lasting solutions of non-compliance with tax laws in Kenya, this will help Kenya Revenue Authority to meet or reduce the tax revenue collection target gap. The study will also provide insights to the policy makers on the factors to consider while making laws to ensure tax noncompliance level is reduced to minimum levels, this will also go hand in hand in coming up with efficient and effective tax collection policies and systems. The study will help the taxpayers to know what they are supposed to do for them to comply, also help them to know what await them if they do not comply. The study adopted the descriptive and explanatory survey design. The target population was 11,501 respondents. The study collected primary data from a sample of 386 taxpayers which were selected through random sampling. The data collected was tested for validity and reliability and analyzed and economic factors, political factors and psychological factors were found to have significant effect on Turnover Tax Compliance. Multiple regression analysis were performed with; economic factors on Turnover Tax Compliance on Roysambu evidence of p=0.006, ρ<0.05, on political factors on Turnover Tax Compliance Roysambu evidence of p=0.003, ρ<0.05 and psychological factors on Turnover Tax Compliance Roysambu evidence of p=0.000, ρ<0.05. The study then made conclusions on economic factors, political factors and psychological factors that all the independent variables were found to play a significant role in the Turnover Tax Compliance on MSMEs in Roysambu area. The study recommended that KRA should pay attention on Tax rates which affect compliance and amount of tax payable, KRA should also satisfy taxpayer by services offered which will make taxpayer trust the Government. Finally, KRA should look into Perceived pressure that influences Turnover Tax Compliance. Therefore, the study suggests the need for more studies to explore the contribution of determinants of Turnover Tax Compliance in Kenya in more detail.