3.2020

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2620

Browse

Browsing 3.2020 by Subject "Consumption tax"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Factors influencing Value Added Tax compliance among construction firms in industrial area, Nairobi County
    (KESRA/JKUAT - Unpublished research project, 2021) Mecheo, Verah
    Tax 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