1. Masters in Tax & Customs Administration

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Browsing 1. Masters in Tax & Customs Administration by Subject "Betting tax"

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    Perceived Effect of Tax Policy on Income Tax Compliance Among Selected Gambling Firms in Nairobi County, Kenya
    (KeSRA_Moi University, 2023) Mutua Mutava
    Income tax compliance is an important issue in any economy worldwide. The gambling and lottery industry has recently risen to become a very lucrative industry in Kenya that can no longer be ignored and warrants more research. Companies are required to adhere to taxation regulations set out by the Kenyan government and file accurate tax returns. However, few gambling companies comply with tax policies, implying that majority are operate in the black market evading taxation. This study, therefore, sought to determine the effect of tax policy on income tax compliance among gambling firms in Nairobi County, Kenya. The specific objectives were to establish the influence of tax regimes on income tax compliance, to determine the effect of tax rates increase on income tax compliance among gambling firms in Nairobi County, Kenya, and to effect of tax base on income tax compliance among gambling industry in Kenya. This study was based on three theories: The Ability to Pay, The Tax Morale Theory and Economic Theory of Income tax compliance. The research adopted explanatory research design. The target population for the study was gambling companies operating in Nairobi City. According to Betting and Licensing Control Board, there are 30 major sports gambling and lottery companies in Nairobi County. Therefore, the target population for this research was 250 senior and middle level managers in the 30 gambling and lottery companies in Nairobi County, Kenya. Simple random sampling technique was adopted to pick out the respondents obtained from managers of gambling companies. Furthermore, the sample size was determined by use of Yamane (1967) formula which will yield a sample size of 154. Primary data was collected through use of semi- structured questionnaires. Data was analyzed using descriptive and inferential statistics. From regression results, the adjusted R Square value was 0.191 indicating that the model explains only about 19.1% of the variability in the income tax compliance by gambling firms. Furthermore, the findings revealed that a unit increase in tax regime is associated with an estimated increase of 36.9% units in income tax compliance; a unit increase in tax rate is associated with an estimated increase of 34.9% units in income tax compliance and a unit increase in tax base is associated with an estimated increase of 19.9% units in income tax compliance. Furthermore, hypotheses testing revealed that tax regimes, tax rates and tax base have a significant effect on income tax compliance among gambling firms with (p=0.000<0.05); (p=0.000<0.05) and (p=0.011<0.05) respectively. These comprehensive findings collectively underscore the importance of thoughtful tax policy design in fostering taxpayer cooperation and compliance within the gambling sector in Nairobi. The study recommended for the Review tax regime structure, Tax rate optimization and Income tax compliance education in the gambling sector
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    Perceived effects of tax policy on organizational performance of gambling and lottery companies in Nairobi County, Kenya
    (KESRA/Moi University, 2021) Liban, Shedho Mohamed; Dr. Macharia, Irungu; Dr. Koske, Naomi
    Organizational performance in the betting industry can be measured by the revenue they generate. The betting companies in Kenya have been recording good performance since 2015. For instance, in 2015, betting industry made Ksh. 2.1 billion, this rose to Sh204 billion in 2018. However, the Kenyan government concern with betting companies is on tax. In 2018, the betting industry made around Sh204 billion but only remitted Sh4 billion in taxes. Moreover, most of the companies did not submit the 20% withholding tax on payouts. Sportpesa, Betin and Betway who together accounted for 85 percent of the market were accused of undercutting the tax man and ordered to close operations immediately. Due to the issues between the Government and betting companies over tax compliance issues, large betting firms in Kenya halted their operations in Kenya owing to what it termed as a hostile operating environment, with the taxation regime on the betting industry making the company‟s operations in the country unviable. Given the aforementioned, the general objective of the study was to establish the perceived effect of tax policy on organizational performance of gambling and lottery companies in Nairobi County, Kenya. Specific objectives were; to establish the perceived effects of corporate tax, withholding tax and betting tax on organizational performance of gambling and lottery companies in Nairobi County. The study adopted an explanatory research design. The target population was 250 senior managers and middle level managers from gambling and lottery companies. Simple random sampling technique was utilized to choose the respondents in sports betting companies. The study sample size was 154 managers. Primary data was gathered by the use of structured questionnaires. Quantitative data gathered was examined by use of descriptive statistics and inferential statistics and presented as percentages, means, standard deviations and frequencies. A multiple regression analysis was conducted to determine the effect of tax policy on organizational performance of gambling and lottery companies in Nairobi County, Kenya. The study found that perceived corporate tax had a negative significant relationship with organizational performance (β = -0.467, P=0.003), perceived withholding tax had a negative significant relationship with organizational performance (β = -0.455, P = 0.003) and perceived betting tax had a negative significant influence on organizational performance (β = -0.472, P = 0.002). The study was important to betting and lottery companies. The companies would comprehend the tax policy. They would be skilled to comply with the tax requirements. The government assured the companies comply with the tax policy through regular analysis. The study recommends that the government should consider striking a balance between revenue generation goals of the government and organizational goals of the gambling and lottery companies. The study recommends that another study should be conducted on challenges facing gambling and lottery companies in Kenya like regulations imposed on the firms, legislation and competition.