3.2020

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http://10.150.1.119/handle/123456789/2620

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Browsing 3.2020 by Subject "Cost of Compliance"

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    Factors affecting the Tax Compliance of Small-scale traders in Voi Sub-County, Kenya
    (KESRA/JKUAT - Unpublished research project, 2020-11) Mambori, Grace Loice
    Tax compliance is a major concern among many governments in the world, this issue has been long discussed. Kenya still faces the challenge of low tax compliance in the SME sector. Therefore, the primary goal of this research was to determine factors affecting the tax compliance status of small-scale traders in Voi sub-county, Kenya. This study sought to address the following research questions; evaluating the effect of tax knowledge on tax compliance among small scale traders in Voi, to determine the effect of cost of compliance on tax compliance among small scale traders in Voi and assessing the effect of technology on tax compliance among small scale traders in Voi. The theoretical framework was based on the theory of economic deterrence, prospect theory and the Fiscal Psychology model theory. The study adopted a cross-sectional research design where the target population comprised of 130 informal traders in Voi Sub-county. The study selected a sample of 98 respondents using the Godden formula. Primary data was used where structured questionnaires were employed; they were pilot tested before administration. Data analysis was done using SPSS version, where descriptive and inferential statistics was used. The analysis determined a Cronbach Alpha of 0.770 and KMO and Bartlet test showed a value of 0.797 which was significant. The regression analysis between compliance cost and tax compliance, the analysis showed (β= 0.185; p= 0.030). Secondly on the relationship between tax knowledge and tax compliance, it was determined that (β=0.212; p=0.009). Finally, on the relationship between technology and SMEs tax compliance, it was determined that (β=0.204; p=0.004). The study found out that compliance cost, tax knowledge and technology affect SMEs tax compliance. The study concluded that compliance cost, technology and tax knowledge significantly affect tax compliance and the improvement of each factor will lead to tax compliance among SMEs. The study finally recommended that the revenue body in conjunction with other law enforcement agencies should simplify online technology in order to reduce compliance cost. The study also recommends that tax payers learning ought to be emphasized since tax data and tax learning tends to advance tax compliance.