2.2021
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Item Determinants of Value Added Tax Performance among Small and Medium Enterprises in Nakuru Central Business District-Kenya(KESRA/JKUAT - Unpublished research project, 2021) Sora, Jane ShagaSmall and Medium Enterprises have always been a factor of concern among tax policy makers all over the world. On one hand, since they constitute the largest universe of taxpayers and on the other their importance in the collection is very small. Taxation of Small and Medium Enterprises is a burden they must bear to sustain their government since the government has certain activities for the benefits of Small and Medium Enterprises. The current research will seek to determine the factors affecting value added tax performance among Small and Medium Enterprises in Nakuru Central Business District. The dependent variable was Value Added Tax performance while the independent variable was tax literacy, cost of compliance and tax audits. The specific objectives were to determine the effect of tax literacy, compliance costs and tax audit on Value Added Tax performance in Nakuru Central Business District. The study was pegged on three theories namely; Contract theory, Transaction Cost Economics Theory and agency theory. The study used descriptive research design. The target population in this study comprised of 578 Small and Medium Enterprises in Nakuru Town registered in the department of trade where a sample of 236 respondents were selected using stratified random sampling. The primary data was collected by use of a questionnaire where the collected data was sorted, corded and fed into statistical package for social sciences after which the relevant descriptive statistics such as standard deviation, mean, variance, and mode output was generated along with correlation and regression analysis for subsequent model testing. The data was analyzed at 5% significant level and 95% confidence level. The descriptive findings show that several tax trainings conducted by Kenya Revenue Authority through workshops and seminars in Nakuru central business district has equipped Small and Medium Enterprises with basic understanding of tax laws. Also, the results show that Small and Medium Enterprises have an access to tax education through media advertisements, magazines and from the Kenya Revenue Authority website. However, concerning access to information on the aggregate taxes collected and how they are spent, the results show that Kenya Revenue Authority rarely share the information concerning collections and how they are spent. Also, regression analysis and correlation analysis established a positive and significant relationship between tax literacy and tax audit with value added tax performance. However, a negative and significant beta coefficient and person correlation coefficients were established between cost of compliance and value added tax performance. The study concludes that tax literacy, reducing cost of compliance and regular tax audit can help improve value added tax performance. The current study recommends that Kenya Revenue Authority need to establish ways of sharing information on value added tax performance and usage to the taxpayers. Lastly, similar studies can be done in other towns in Kenya to establish whether similar findings will be obtained. Also, similar study can be done in Nakuru but in a different sector like real estates and see if same findings will be obtained.Item Role of Tax Intelligence in Revenue Collection by Kenya Revenue Authority in Mombasa County(KESRA/JKUAT - Unpublished research project, 2020-11) Kiprotich, Julius ; Mumia Benn MINCU, CPA.KKenya Revenue Authority has invested heavily on streamlining business processes leveraging on technology so as to achieve effective and efficient tax administration. Despite this, there are still challenges facing the tax agency among them tax evasion where taxpayers continue to invent new ways of dodging the taxman. This has led to continued shortfalls in revenue collection. Among the strategies outlined in KRA’s 7th Corporate Plan was to enhance revenue collection through improved compliance and become a data and intelligence driven organization. The study sought to establish the role of tax intelligence in revenue collection by Kenya Revenue Authority in Mombasa County. The general objective was to establish the role of tax intelligence in revenue collection by Kenya Revenue Authority in Mombasa County. It was supported by three specific objectives: To establish the role of tax intelligence collection in revenue collection by Kenya Revenue Authority in Mombasa County. To determine the role of tax intelligence operations in revenue collection by Kenya Revenue Authority in Mombasa County. To assess the role of data-intelligent strategy in revenue collection by Kenya Revenue Authority in Mombasa County. The main theories guiding the study were economic deterrence theory, slippery slope framework (SSF) and resource dependency theory. The study adopted descriptive research design and a structured questionnaire to collect primary data. The target population was 588 Kenya Revenue Authority employees in Southern Region headquarters as detailed in Kenya Revenue Authority human resource database. A sample size of 238 was derived using Yamane formula and grouped into three strata consisting of top, middle and lower management using stratified random sampling technique. Structured questionnaires were used to collect data while descriptive and inferential statistics used to analyze the findings. Quantitative data was collected, tabulated, coded and analyzed using Statistical Package for the Social Sciences (SPSS) version 25. The findings of this study will be of vital significance to Kenya Revenue Authority, taxpayers and the academic network by providing them with an oversight of role of tax intelligence in revenue collection by Kenya Revenue Authority in Kenya. Based on the findings, it is evident that there is a significant relationship between tax intelligence collection, tax intelligence operations and data-intelligent strategy and revenue collection by Kenya Revenue Authority in Mombasa County. Correlations analysis results indicated a positive relationship between tax intelligence and revenue collection. In conclusion, the study established that tax intelligence is applied by KRA through making use of some renowned techniques associated to the task, in the course of investigations conducted by the tax intelligence staff. The study recommends that KRA management should allocate more financial resources to enable recruitment of more intelligence officers. The study also recommends that the government should allocate the organization with sufficient operation funds in order to expand intelligence operations in the country. Additionally, the study recommends regular training of intelligence officers and adequate consideration for intelligence reports by the management. Finally, the tax intelligence department should develop an Intelligence Management System, preferably in a computerized format and integrated in a network to allow for intelligence collection, analysis and dissemination and feedback management. There is need to conduct further research which may be extended in details to other variables. In addition, a repetition of this study should be conducted using a larger sample size, with inclusion of more variables and application of more robust set of statistical tools apart from those used in this study which could increase the robustness of study models and hence the validity of the results.Item Factors Affecting Tax Revenue Collection in Mombasa County(KESRA/JKUAT - Unpublished research project, 2020-10) Mghanga, Sylvester MashaIn the last decade, Kenya’s economy has posited constant growth, however the economy has spiraled freely devoid of any tangible intend to formulate policy interventions to expand tax base with a view to revamp tax revenue collection. Despite the recorded growth, the ever increasing public expenditure has been unable to be fully funded by the tax revenue collected. The country has experience huge challenges in collecting optimum revenue adequate to run government services. These challenges have been blamed on taxpayers resisting to remit their tax dues and tax illiteracy by the informal traders and unschooled population. The purpose of the study is to investigate the factors affecting tax revenue collection in Mombasa County. The study specific objectives are to examine the effect of information systems integration on tax revenue collection, to establish the effect of tax regulatory framework on tax revenue collection and to determine the effect of corporate governance on tax revenue collection in Mombasa County. The study is anchored on optimal theory of tax, technology acceptance model and stewardship theory. The target population of the study was 235 staff working in domestic tax department of Kenya Revenue Authority in Mombasa region. The study employed stratified random sampling technique and used Slovins formula to obtain a sample of 148 participants. The study utilized both primary data and secondary data. Primary data was collected by use of structured questionnaires while the study utilized secondary data materials collected from KRA revenue collection performance reports. The researcher adopted drop and pick method to distribute the questionnaires to the respondents. Pilot study was carried out to ascertain the validity and reliability of data collection tools. The collected data was analysed, summarized and tabulated by use of SPSS software version 25. Descriptive analysis and inferential analysis was used to summarize the results for each of the study objectives. The findings indicated that tax processes in domestic tax department are automated and the tax systems are integrated to the overall KRA system. The domestic tax department has drafted policies to complement tax regulatory framework The study concludes that Information Communication Technology has improved the tax processes efficiency in the department and the systems of tax in use are reliable. The study concludes that domestic tax department has drafted policies to complement tax regulatory framework and there is flexibility in the current regulatory framework. The study concludes that tax systems are secured with passwords and firewalls and domestic tax department policies encourage transparency and accountability. The study recommends that all the tax processes within the department of domestic tax should be automated to ensure efficiency and effectiveness in the tax revenue collection. The tax systems should be secured with firewalls and strong passwords which should be regularly updated to prevent unauthorized access.Item Effect of Taxation on the Performance of Small and Meduim Enterprises in Voi Town, Kenya(KESRA/JKUAT - Unpublished research project, 2020-07) Ngali, Jenta ItakaSMEs are faced with the problem of high tax rates, multiple taxation, complex tax regulations and lack of proper enlightenment or education about tax related issues. It was in this regard that the researcher sought to establish the effects of taxation on the performance of SMEs in Voi Town. The study was guided by the following objectives: To assess the effect of tax policies on performance of SMEs in Voi town, Kenya, to evaluate the effect of tax rates on performance of SMEs in Voi town, Kenya and to ascertain the effect of tax reforms on the performance of SMEs in Voi town, Kenya. The study will be of great value to the management of SMEs and formulation tax policies pertaining to KRA. To provide the basis of the study, the researcher relied on the following theories: ability to pay theory, economic theories and optimal theory of taxation. The study adopted a cross-sectional research design, where 130 SMEs of the town were targeted. The study used Yamen’s formulae to determine a sample of 98 SMEs which were stratified into various business categories. The study used structured questionnaires which were distributed to the management and owners of these SMEs. The returned questionnaires were analyzed using SPSS to establish the relationship between the study variables. The study relied on a response rate of 72.4% (71) for data analysis and findings. The analysis showed that there was a significant negative very weak relationship between tax policies and SMEs performance (β= -0.185; p= 0.030). Secondly, it was determined that there was a weak negative and significant relationship between tax rates and SMEs performance(β=-0.212; p=0.009). Finally, on the relationship between tax reforms and SMEs performance, a weak positive relationship between the two study variables (β=0.204; p=0.004). The study concluded that tax rates and tax policies has a significant negative effect on tax performance, while tax reforms has a significant positive effect on SMEs performance. The study recommended that tax regulations governing SMEs should be simplified in order to improve their growth and to make compliance easier for them.Further, tax administration should use current tax reform to reduce tax complexity with tax authorities which should focus and help taxpayer during filing taxes with returns information. Finally, tax administrators should improve their support services towards SMEs.