3.2020

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http://10.150.1.119/handle/123456789/2620

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Browsing 3.2020 by Subject "Compliance Costs"

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    Determinants of Tax Compliance in the informal sector in Kenya : A case study of Small and Meduim Enterprises in Machakos County
    (KESRA/JKUAT - Unpublished research project, 2020) Cherop, Janet
    The aim of this study was to assess determinants of tax compliance in the informal sector in Kenya. This research will investigate the level of tax compliance in the informal sector with a focus on SMEs in Machakos County. The study was guided by the following objectives: to determine how tax Awareness on the tax compliance in the informal sector in Kenya; to assess the effect of Tax Rate on the tax compliance in the informal sector in Kenya and finally to establish the effect of Compliance Cost on the tax compliance in the informal sector in Kenya. This study was based on the following theories; Allingham and Sandom Model, Pecking Order Theory and finally Institutional Anomie Theory. The study adopted a descriptive research design. The study had a target population of 1,680 SMEs. The study adopted a stratified random sampling technique to select 10% of the target population as the sample size. Questionnaires were used as the research instrument to gather the relevant information. Primary data was used for the purpose of this study. The data was collected using semi structured questionnaires containing closed ended questions. The study was carried out a pilot test to test the validity and reliability of the questionnaires in gathering the data required for purposes of the study. The researcher edited the completed questionnaires for completeness and consistency. Regarding Tax Awareness, the study concluded that Awareness had a positive but significant effect on the tax compliance in the informal sector in Kenya. The study also concluded that Tax Rates had a negative but significant effect on the tax compliance in the informal sector in Kenya. The study further concluded that Compliance Cost had a positive but significant effect on the tax compliance in the informal sector in Kenya. The study recommends that Kenyan tax authorities needs to take an active role in enabling the capacity of traders in the informal sector in areas of training so that they can be equipped with basic Tax Knowledge. The study also recommends that tax rates should be reviewed for those in the informal sector to ensure that they commensurate with economic conditions. The study finally recommends that the Kenyan tax authorities should come up with policies to reduce tax compliance cost to ensure that they do not affect the growth of traders in the informal sector and encourages traders in the informal sector to comply with taxes.
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    Factors influencing Tax Compliance among Small Scale Enterprises in Likoni Sub-County, Mombasa County
    (KESRA/JKUAT - Unpublished research project, 2020) Yeri, Omar Kazungu
    The researcher in this study sought to evaluate different factors that influence compliance of taxpayers in Likoni Sub-county. The following research objectives was used: To establish the influence that taxpayer knowledge has on Tax compliance among SMEs in Likoni Sub County, to establish the impact that tax rates has on tax compliance among SMEs within Likoni Sub County and to establish the effects of compliance cost influences the level of tax compliance among SMEs in Likoni Sub County. To provide the basis of the study, the researcher relied on prospect, fiscal and psychological and economic theories. The study adopted cross-sectional research design, where 831 SMEs were targeted and a sample of 314 was obtained using Krejecie and Morgan’s formulae, was used. Structured questionnaire was used to collect data from these SMEs and then the collected data was analysed using SPSS version 24. Reliability and validity test on the study variables, indicated that the study variables were reliable and valid. The study found out that tax knowledge and tax compliance were positively and significantly related. Further the analysis showed that there was a negative and significant between tax rates and compliance cost. Finally, on the relationship between compliance cost and tax compliance. the study concluded that tax knowledge and compliance cost significantly and positively affect tax compliance, but tax rates negatively and significantly affects tax compliance. It was further concluded that tax knowledge and compliance cost significantly contribute to the improvement of tax compliance, but an increase in tax rates contributes to non-tax compliance among SMEs in Likoni. The study recommended that KRA should Consider lowering the tax rates to enhance collections. The study finally recommends that the returns ought to be simplified and accompanying notes reconstructed into plain language that can be understood by all taxpayers.