3.2020
Permanent URI for this collection
Browse
Browsing 3.2020 by Subject "Compliance"
Now showing 1 - 3 of 3
Results Per Page
Sort Options
Item Effect of tax administration on compliance among small and medium sized enterprises in Kiambu County(KESRA/JKUAT - Unpublished research project, 01-11-20) Wachira, Stephen KamauLow levels of tax compliance are observed among SMEs thus reducing potential tax collections and increasing the tax administration effort. Many countries address these issues by adopting simplified tax regimes for SMEs and implementing dedicated compliance strategies. The general objective of the study was to determine the effect of tax administration on tax compliance among small and medium sized enterprises in Kiambu County. The study was guided by the following variables; deterrence tax measure, electronic taxation system and tax education. The study was anchored on three theories; The Deterrence Theory of Tax Compliance, Theory of Planned Behavior and Adams Smith Canons of Taxation Theory. The target population comprised of 247 registered businesses in Kiambu County as at 31st December, 2019. This study adopted cross sectional survey design. Stratified random sampling method was used to select relevant respondents. Questionnaires were used to collect primary data from respondents. Secondary data was obtained from related materials in tax management journals. Quantitative data was analyzed using SPSS version 25. Descriptive statistics and multiple regression analysis was used to predict the effect of deterrence tax measures, electronic taxation system and tax education on tax compliance. A pilot study was undertaken on 15 of the respondents to test the reliability and validity of the questionnaire. The study found out that there was a positive and significant relationship between deterrence tax measures and tax compliance. Further, the results revealed that there was a positive and significant relationship between electronic taxation system and tax compliance. Lastly, there was a positive and significant relationship between tax education and tax compliance. Based on the findings, the study concluded that deterrence tax measures, electronic taxation system and electronic taxation system have a positive and significant effect on tax compliance. Based on the findings, the study concluded that deterrence tax measures, electronic taxation system, electronic taxation system have a positive and significant effect on tax compliance. The study recommends that the sanctions and penalties should be levied promptly once a liability has been established; should not be excessive; should, however, be higher than the prevailing market interest rates. KRA should offer continuous training to taxpayers on how to use the various IT platforms like iTax, EGMS, Mobile Apps and Electronic Stamps in their organizations to improve excise duty compliance. Lastly, there should be training of special units within the revenue departments; for providing education, counseling and support to the taxpayers, through different media which include newspapers, television, radio programs, websites, seminars and front desk help, these create more room to disseminate key information to the taxpayer.Item Factors influencing tax compliance among small and medium enterprises in Wajia area, Kenya(KESRA/JKUAT - Unpublished research project, 2020) Yarow, Muktar AbdullahiTax is an important stream of revenue for government‘s development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected so as to facilitate the government‘s operations. In an effort to maximize collection of revenue and efficiency in tax administration, key changes to tax policy evolving around ensuring equity, further widening the tax base, promoting increased investment and in so doing, reducing the tax compliance burden, have in the recent past been made by the Kenyan government. This study sought to identify the factors that influence tax compliance in Kenya, specifically focusing on SME‘s operating within Wajir Area. The researcher outlined a detailed literature review and identified the variables for this research to be tax rate, availability of tax information, tax compliance cost and attitude of SME‘s. The research was a descriptive survey. Given the large population of registered taxpayers in Nairobi, a sample size of 150 was picked as representative, to be the focus of this study. To ensure that various diverse categories of taxpayers and business entities were included in the survey, stratified sampling technique was adopted. Data was collected using self-administered questionnaires and an interview guide. The collected data was consequently analyzed using Statistical Package for Social Scientist software and the findings of the research presented using tables. The findings of the study revealed that with regard to tax rate as a factor influencing SMEs compliance, the majority view that Kenya has high tax rates with several different tax heads and this consequently hinders their level of compliance. The lack of readily available information relating to tax matters accounted to a great percent as a reason for non-compliance. The lack of information contributed to the inability of the taxpayers to correctly calculate the taxes payable; another form of non-compliance. The SMEs view that if more information would be availed to them in form of tax seminars and literature, this would demystify the complex concept of tax and greatly motivate them to be compliant. The findings of this study further revealed that 47% of the SMEs interviewed incur more than Ksh.50, 000 monthly, as costs of tax compliance. Some of these costs include bookkeeping, installation of software and internet costs, additional cost of hiring professional staff such as auditors and tax experts, accounting for the largest proportion of these costs. With regard to SMEs attitude as a factor affecting tax compliance, the respondents do agree and feel that they do have access to public utilities which are made available by the taxes paid to the government; hence they enjoy benefits of the taxes they pay. These organizations do value the payment of taxes to the government to a great extent, which affects their level of tax compliance. The findings of the study further revealed that the respondents do feel that their counterparts, fellow SMEs, also value the payment of taxes to the government to some extent. However, the taxpayers do feel and strongly agree that the taxation system in Kenya is in great need of improvement. By gaining an understanding of these underlying factors, KRA and the government will be able to make changes that will greatly improve taxpayers‘ tax compliance level, with the end result being increased government revenues, allowing the tax authority to give quality service to taxpayers and the government as a whole providing more and improved utilities to the public.Item Factors influencing Value Added Tax compliance among construction firms in industrial area, Nairobi County(KESRA/JKUAT - Unpublished research project, 2021) Mecheo, VerahTax compliance is the degree to which the taxpaying community meets the tax obligations set out in the appropriate legal and regulatory provisions. The VAT in general continues to perform below expectations despite the increased taxable business transactions especially among firms in the construction industry. In Kenya, taxpayers in the construction industries, exhibit varying levels of tax compliance. Hence the study aimed at investigating factors influencing Value Added Tax compliance among the construction firms in Industrial Area. The study was guided by the following objectives: - to find out how tax knowledge and skill, compliance cost and attitudes and perception of construction firms on VAT compliance. The study was anchored on three main theories: the theory of Attribution theory, Compliance theory and Fiscal Phycology theory. The target population was 920 active registered VAT construction firms in Industrial area, Nairobi County. Random sampling was employed to arrive at a sample size of 92 respondents. The study used descriptive study design. Primary data was collected through interviews by use of questionnaires with closed ended questions geared at Likert Scale. Data was coded for processing and SPSS used for data analysis to produce both descriptive and inferential statistics. Regression model was used for establishing the relationship between the study variables. The analysis of variance (Anova) was be used on the average figures for all the measures of performance. The key findings of the study were that: knowledge and skill on taxpayers is essential for VAT compliance, compliance costs deterred taxpayers from being VAT compliant and perception compelled taxpayers to be VAT compliant. The study recommends that regular tax trainings and adequate and simplified information should be provided on KRA website and other social platforms. KRA should respond promptly on issues of concern raised by taxpayers. And that KRA to offer comprehensive trainings in institutions to make taxpayers competent enough to cut down on costs of employing the services of tax experts and also training of staff .Regulatory bodies should consider controlling the amount of fee charged by tax experts. The government that is taxed with taxpayers’ finances should be overly accounted for every coin and utilize it effectively for the benefit of all citizens