3.2020

Permanent URI for this collection

http://10.150.1.119/handle/123456789/2620

Browse

Now showing 1 - 20 of 88

Effect of Taxpayer Education on Revenue Collection by Kenya Revenue Authority among Small and Medium Enterprises in Mvita Sub-County
(KESRA/JKUAT - Unpublished research project, 2020-10) Benson, Jemima Furaha
Taxpayer education plays a vital role in improving voluntary tax compliance maximizing revenue collection to meet the social responsibilities and accelerate economic growth aimed at achieving vision 2030. The major task facing the tax authorities across the globe is the effort to motivate taxpayers to comply with all the existing tax laws. The study therefore sought to investigate effect of taxpayer education on revenue collection by Kenya Revenue Authority among small and medium enterprises in Mvita Sub-County. The specific objectives guiding the study were to assess the effect of the taxpayer sensitization on revenue collection by Kenya Revenue Authority among small and medium enterprises in Mvita Sub-County. To determine the effect of taxpayer print education on revenue collection by Kenya Revenue Authority among small and medium enterprises in Mvita Sub-County. To evaluate the effect of taxpayer online education on revenue collection by Kenya Revenue Authority among small and medium enterprises in Mvita Sub-County. The main theories were psychological theory, the theory of optimal taxation, and institutional theory and adopt descriptive cross-sectional study. The target population was 1557 small and medium sized enterprises in the Mombasa County database and a sample size of 318 small and medium sized enterprises was selected using Cluster sampling method. Structured questionnaire was 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 Social Sciences version 25. The findings led to the conclusion that Taxpayer sensitization, Taxpayer Print Education and Taxpayer Online Education positively influenced tax collection by Kenya Revenue Authority in Mvita Sub-County. The study therefore concludes that taxpayer education especially the Taxpayer Online education and the Taxpayer sensitization are important aspect in the field of tax collection and administration. It therefore requires Kenya Revenue Authority to employ the most efficient education strategies such as tax clinics, tax seminars and social media campaigns in promoting tax awareness amongst the taxpayers in order to increase the revenue collection. The government should invest in promoting taxpayer education channels in terms of, Taxpayer Sensitization, Taxpayer Print education and Taxpayer Online education in ensuring that tax compliance is enhanced. Further studies should be done about the effect of taxpayer education on revenue collection in those other industries and sectors. In addition, a repetition of this study should be conducted in other parts of the country and using a combination of other data-collecting instrument such as interviews and focus group discussions to so as to come up with a conclusive results and evidences.
Effect of Taxpayer Education on Tax Compliance in Malindi Town
(KESRA/JKUAT - Unpublished research project, 2020-11) Ayub, Biyub ; Mumia Benn MINCU, CPA.K
Taxpayer education serves to create taxpayer awareness of laws and procedures, educate taxpayers on their tax responsibilities and rights, assist and motivate taxpayer to comply voluntarily, assist taxpayer on reporting the correct income and amount of tax, maintaining close relationship between the tax authority and the taxpayer continuously and instill public confidence in taxation system. Tax is very important aspect in any country because revenue collected from taxes enables a country to provide services for its citizens and also development of its economy revenue as it should, which is a significant problem to the country growth as a whole. Therefore this study assessed the effects of taxpayer education on tax compliance in Malindi ward a case study of people found Malindi constituency. The objective of the study was to determine the effects electronic media tax education, stakeholder sensitization programmes and effect of print media on tax compliance. The target population was people and business found In Malindi ward. This study adopted cross-sectional survey design; the population of this study was 4,190 taxpayer where a sample of 300 was selected. The study relied on data collected through questionnaires structured to meet the objectives of the study. The collected data was analyzed using both inferential and descriptive statistics through SPSS. The analysis showed that print media, stakeholder sensitization and electronic taxpayer education significantly and positively affects tax compliance. The study found out that electronic tax payer education significantly contributes to the improvement of tax compliance but stakeholder sensitization and print media taxpayer education does not affect tax compliance. The study further concludes that this tax payer education partially affects tax compliance; hence there are other factors which can contribute to improvement of tax compliance. The study further conclude that tax rates are too high which is one of the contributing factors to non-compliance, for the compliance to be improved tax laws must be respected. The study further concludes that there are some taxpayers who feel that it was unfair to pay taxes and dishonest tax collectors contribute to non-compliance. The study recommends that in order for KRA to expand tax base and improve tax compliance, there is a need to seriously address wage levels in the long-term and improve tax sensitization. Such an approach will lay bare the fact that Kenya will not be able to increase income tax to a level where it is the primary source of taxation and this needs to be accepted by the Kenyan government and incorporated into their spending plans. Additionally it recommended that the Kenyan government should increase the administrative capacity of KRA through electronic tax sensitization since the study determined that it will lead to more than 42.8% of tax compliance and also providing education services to not only tax payers but also KRA employees.
Factors Affecting Administration of Turnover Tax among Small and Medium Enterprises in Nyali Constituency, Mombasa County
(KESRA/JKUAT - Unpublished research project, 2020) Nyambu, Gladys Machocho
The problem of tax administration is universal to both developing and developed country with tax evasion being a great challenge in the collection of adequate taxes for financing public projects. The purpose of this study is to find out the factors affecting the administration of turnover taxes among small and medium enterprises in Nyali constituency, Mombasa County. The study's specific objectives were to; establish the effect of tax structure, assess the effect of tax policies, and to establish the effect of stakeholder awareness on the administration of turn over taxes among small and medium enterprises in Nyali constituency in Mombasa County. The study adopted a cross-sectional, the target population for the study was 1238 owners of small businesses in Nyali constituency in the sale of agricultural produce, boutique, beauty, retail, and repairs. The sample for the study was established through the Yamane Formula which gave a sample of 175 respondents. The sample was proportionately spread across the clusters to be representative. Data for the study was collected through questionnaires. The questionnaire had Likert scale questions that were administered by field data collection assistants through drop and pick methods. Collected data was analyzed through descriptive research design on mean, frequencies standard deviation, and percentages whereas qualitative data will be analyzed through content analysis. Regression analysis was also conducted to find out direction and magnitude in the relationship of study variables. Data was presented on tables and bar graphs and narrative interpretations. The tax structure was found to have a positive and significant relationship with tax administration. Adverse tax policy was also found to have a negative and significant relationship with tax administration. Stakeholder knowledge was also found to have a positive and significant relationship with tax administration. The study concluded that tax structure, tax policy, and stakeholders were found as factors that affected turnover tax administration. The study recommended the simplification of the process of filing for turnover taxes and ensuring fairness through ensuring there is equal sacrifice among taxpayers by having progressive taxation. The study also recommended the introduction of fair and reasonable penalties for people who failed to file the return within the provided guidelines because heavy penalties were seen as avenues for evading taxes and discouraged voluntary compliance. The study finally recommended for improvement of stakeholder awareness through seminars, business clinics, and workshops.
Factors affecting Tax Compliance of Motor Vehicle Dealers in Mombasa County
(KESRA/JKUAT - Unpublished research project, 2020) Ohola, Corazon Aquino
Despite many tax changes, code of tax in Kenya is still complex, described by irregular and insufficient tax collection, a small tax base with high tax rates and low compliance. This study sets out to determine the factors influencing tax administration among motor vehicle dealers in Mombasa County. The study specifically established the effects of tax incentives on tax compliance, determine the effects of compliance costs on tax compliance, examine the effects of Information, Communication and Technology on tax compliance and establish the effects of tax incentives on tax compliance among motor vehicle dealers in Mombasa County. The study is based on three theories. The theories were technology determinism theory, transactional cost theory and Psychological and Economic Theory. The study analysed other studies used in this field, critique the studies and come up with research gaps that were beneficial for future studies. Data analysis was the instruments used for collecting data. This was a descriptive study. The target population were 221 respondents. The study adopted a stratified random sampling technique to involve 142 respondents. Reliability of the instruments was determined by piloting the instrument and validity was enhanced by discussion with supervisors and reliability was tested by figuring Cronbach’s Alpha coefficient. Data was subjected to descriptive statistics and analysed using SPSS and frequency tables and graphs were used for presentation. From the results, an R of 0.621 shows that there is a positive correlation between factors influencing tax compliance among motor vehicle dealers in Mombasa County. The adjusted R square of 0.380 indicates that taxpayer incentives, compliance costs and Information Communication Technology in exclusion of the constant variable explained the change in tax compliance by 38%, and the remaining percentage can be explained by factors not included in the model. The study recommends that the KRA should enhance taxpayers’ knowledge on tax compliance among motor vehicle companies. This can be done through training by attending workshops and seminars. KRA should enhance tax incentives in order to enhance tax compliance among motor vehicle companies. This can be enhanced through strict rules and regulations formulation. The Information Communication Technology should be enhancing in motor vehicle companies in tax compliance. Opportunities for further research still exist in this area. The study assessed factors affecting tax compliance of motor vehicle dealers in Mombasa County. Therefore, further research should be carried out in types of companies in other counties.
Effect of Excisable Goods Management System on the Revenue Collection at Malindi Tax Service Office
(KESRA/JKUAT - Unpublished research project, 2020) Lenga, Lorraine
Coast Bottled Water Manufacturers Association has estimated that KRA loses 4.7 litres for every five-litre bottle to the unscrupulous dealers, excise stamps are swapped. It was in the background of this statement that researcher sought to establish the effect of excisable goods management system on the revenue collection in Malindi TSO. The study was guided by the following specific objectives: to determine the effect of product marking on revenue collection in Malindi TSO, to examine the effect of tracing on revenue collection in Malindi TSO and to assess the effect of verification on revenue collection in Malindi TSO. The study will be of great benefit to researchers and academicians, Kenyan government and more specifically KRA and finally other policy makers. To provide the basis of the study, the theory of reasoned action, technology acceptance model and dynamic capabilities theory were used. The study adopted descriptive research design where 55 KRA employees in Malindi were targeted. The sample size was generated using Yamane’s formula and a stratified random sampling technique was used to select the respondents. The study will use structured questionnaires which was distributed to the study respondents. Collected questionnaires was analysed using SPSS version 24, where both inferential and descriptive research design was used. The study relied on 43 returned questionnaires for data analysis and to base the study findings on. It was found that product marking significantly and positively affects revenue collection on excisable goods in Malindi. The study further determined that an improvement in product marking would lead to improvement on revenue collection on these goods. Also, the study found out that, that excisable goods tracing significantly and positively affects revenue collection on excisable goods in Malindi. The study also established that an improvement excisable goods tracing would lead to an increase in revenue collection on the excisable goods. Finally, the study established that excisable goods verification significantly and positively affects revenue collection. The analysis further showed that an improvement in excisable goods verification would significantly contributes to an increase in revenue collection on excisable goods in Malindi. The study concluded that EGMS constructs (product marking, excisable goods verification and excisable goods tracing) positively and significantly affects revenue collection on excisable goods in Malindi. The study recommended that to address issues of monitoring and tracking of excisable goods, there is need for KRA to ensure that they use work in collaboration with manufacturers of these products on the adoption of latest tracking gadgets that cannot be easily tampered with. There is also need for KRA to hire more staff to ensure excisable goods and the production process of these products are adequately assessed before being released for export or local market usage.
Effect of Double Taxation Agreement on Revenue Collection from Multinational Enterprises in Kenya
(KESRA/JKUAT - Unpublished research project, 2020-01) Kung'u, Simon Njoroge ; Mumia Benn MINCU, CPA.K
Double Tax Agreements play a crucial role in providing certainty for the taxation regimes for foreign investors in foreign countries. It was in this regard that the researcher sought to establish the effect double tax agreements on revenue collection. The following objectives were used: To evaluate the effects of mutual agreement procedures on revenue collection from multinational enterprises in Kenya, to find out the effects of exchange of information on revenue collection from multinational enterprises in Kenya and to assess the effects of tax harmonization on revenue collection from multinational enterprises in Kenya. The study will be of great value to Kenyan government, scholars and researchers and multinational organisations. To provide the basis of the study, the researcher relied on: Lindahl’s Theory of Tax Treaties, Bowen’s Tax Incentives Theory and Evolutionary Theory of Tax Treaties. The study adopted. The study adopted descriptive research design, where 75 KRA officers were targeted, out of which a sample of 63 officers were used as the study respondents. The study used structured questionnaires where SPSS version 24 was used for data analysis. Mean and Standard Deviations were used to describe the variables in the study while Regression Analysis was conducted to determine the strategic effects of Double Taxation Agreements on the Revenue Collection from the Multinational Enterprises in Kenya. Out of 63 questionnaires which were distributed by the study researcher, 46 were returned which represented a response rate of 73%. The correlation and regression analysis indicated that there exists a positive and significant relationship between the study variables except for tax harmonization, which the anlysis indicated that the relationship was statistically insignificant. Coefficient determination indicated that the variables can only explain 74.8% of revenue collection. Study findings revealed that MAPs enables the government to solve double tax issues and also allows resolution on the inconsistencies in the interpretation and application of a tax treaty. It was further determined that there exists a moderate positive relationship between exchange of information between DTAs and revenue collection. Accordingly, Mutual Agreements Procedures, Tax Harmonization and Information Exchange affects revenue collection with t=0.914; p=0.003; t=2.289; p=0.004 and t=0.932; p=0.364 respectively and collectively with R-Square value of 0.765.From the findings, the study recommends that countries in the Double Taxation Agreements should review their domestic tax legislation. Finally it was further recommended that KRA should incorporate double tax agreements in their tax education.
Effect of Value Added Tax on Financial Performance of Small and Meduim Enterprises in Mombasa County
(KESRA/JKUAT - Unpublished research project, 2020) Omar, Mahmud Ali
The serious decline in financial performance of small enterprises in recent years had led to a decrease in profit available for tax obligation to the government. The need for small business enterprises to generate more returns from its internal sources has therefore become a matter of extreme urgency which has been linked with taxation of small business enterprise, especially in developing countries. Failure of small business enterprise to grow has been a concern for the law makers, many business closed down before their fifth anniversary as a result of tax related issues, coming from multiple taxations hence enormous tax burdens. The study therefore sought to investigate the effect of value added tax on financial performance of small and medium enterprises in Mombasa County. The specific objectives guiding the study were to determine the effect of zero-rated value added tax on the financial performance of small and medium enterprises in Mombasa County. To ascertain the effect of exempt rated value added tax on the financial performance of small and medium enterprises in Mombasa County and to assess the effect of standard rated value added tax on the financial performance of small and medium enterprises in Mombasa County. The main theories were benefit theory, the cost of service theory and ability to pay hypothesis and adopt descriptive cross-sectional study. The target population was small and medium enterprises in Mombasa County and a sample size was selected using stratified random sampling technique. Structured questionnaire was used to collect data while descriptive and inferential statistics used to analyze the findings using Statistical Package for Social Sciences. The study revealed that there exists a direct effect of value added tax on Financial Performance of Small and Medium Enterprises in Mombasa County. Change in value added tax by increasing is attributed to deterioration in the performance of the SMEs financially. Individual variables i.e. zero-rated supplies, exempt supplies and standard rated supplies contributes directly to the cumulative profitability and resultant service quality to the customer. The study recommended that for an effective tax system, the Kenyan government may need to consider allowing input tax credits i.e. reducing the taxes paid on inputs from taxes to be paid on output. Most quoted consumer goods firms’ today battle with dwindling revenue as consumers should be moved to cheaper options.
Factors Influencing Revenue Collection through Mobile Money Transfer in Kenya Revenue Authority Malindi Station
(KESRA/JKUAT - Unpublished research project, 2020) Mwasaru, Hellen Eghwa
KRA has not been meeting their annual revenue collection targets ever since. It was in the background of this statement that this study attempted to establish the factors influencing revenue collection through Mobile money transfer in Kenya Revenue Authority, Malindi Station. Kenya Revenue Authority has been mandated with collection of the national taxes that means in all its attempts it has to come up with ways to grow the revenue of the Government. The general objective of the study was to find out the factors influencing revenue collection through mobile money transfer. The specific objectives of the study were; to find if the transfer cost in mobile money affects revenue collection; to find out if user interface in mobile money transfer affects revenue collection; to find out if platform security in money transfer affects revenue collection. The researcher used quantitative and qualitative research designs. It was conducted at the Southern Region, Malindi station KRA office. The target population was at Malindi station SMEs turnover taxpayers 272. Simple Random sampling was used. Qualitative methods data collection instrument was used, a key informant interview guide with a questionnaire. The reliability test of the instruments was done using Cronbach’s Alpha coefficient while validity test was checked using pilot testing. The data was coded, fed into the Statistical Package Software for Social Sciences (SPSS) and was analyzed using descriptive and inferential statistics and presented using tables. Qualitative data was categorized into themes and then analyzed quantitatively. The findings of this study will be helpful to administrators of revenue collection at Kenya Revenue Authority, contribute to literature on mobile money transfer and suggest improvements in application of mobile money transfer in revenue collection. The researcher distributed 162 questionnaires but only 97 questionnaires were returned which represented almost 60%, response rate. The analysis showed the relationship between transfer cost and revenue collection, the analysis showed (β=0.17; p=0.344). Further on the relationship between user interface and revenue collection, the analysis determined (β=0.550; p=0.550), Finally, on the relationship between platform security and revenue collection, it was determined that (β=0.701; p=0.000). The study found out that transfer cost has insignificant relationship with revenue collection, while platform security and user interface has a significant effect on revenue collection through mobile transfer. The study recommended that Kenya Revenue Authority should increase their public awareness campaigns to ensure that the taxpayers get the right information as pertains to tax payment through mobile platforms.
Factors Affecting iTax Compliance among Small Businessess in Malindi
(KESRA/JKUAT - Unpublished research project, 2020) Aghan, Faith Verner
Small business owners play a major role in a country’s tax system. Most researchers however suggest that small business owners are most likely to cheat on their taxes than other classes of taxpayers. On the other hand, the actual experience of paying taxes and small business owners’ tax behaviour has received surprisingly little attention. This paper contributes to the understanding of small business owners’ tax compliance behaviour by pointing out that tax decisions are susceptible to psychological influences. This reasoning formed the basis of the main contribution of this study which sought to examine the factors affecting iTax compliance among small business owners in Malindi. The study was guided by the following specific objectives: To determine the effect of taxpayer awareness on iTax compliance by small businesses in Malindi, to examine the effect of taxpayer perception on iTax compliance by small businesses in Malindi and to establish the effect of iTax infrastructure on iTax compliance by small businesses in Malindi. To provide the basis of the study assumptions, the study relied on the following theories: The Technology Acceptance Model, Theory of Reasoned Action, Diffusion of Innovation Theory and the Psychology Based Theory. The study adopted cross- sectional survey design using both quantitative and qualitative approaches, where 113 small business owners were targeted from various sectors and a sample size of 88 respondents who took part in the study was determined using the Slovin’s formula. The study adopted stratified sampling technique. The study used structured questionnaires with closed ended questions which were distributed to the various sectors using drop and pick method. The collected data was analyzed using both inferential and descriptive statistics with the help of SPSS. The analysis showed that a unit improvement in taxpayer awareness would result in an increase in iTax compliance and the relationship was statistically significant. The analysis further determined that, a unit improvement in taxpayer perception would result in an increase in iTax compliance but the relationship was statistically insignificant. Finally, it was revealed that a unit improvement in iTax infrastructure would result in an increase in iTax compliance and the relationship was statistically significant. The study concluded that taxpayer awareness, taxpayer perception and iTax infrastructure significantly affect iTax compliance with iTax infrastructure being the main contributor to iTax compliance. The study recommended that KRA should simplify tax laws and ensure taxation knowledge is acquired in ways that simultaneously increase compliance and curb tax evasion. The study further recommended that KRA should make continuous modifications to the system to make it easy to use and simplify tax processes. Finally, the study recommended that KRA should conduct continuous training on technical skills, tax knowledge and build reliable internet connections to encourage adoption of online filing and consequently increase compliance.
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.
Factors Influencing Compliance on Turnover Tax among Small and Medium-sized Enterprises in Mombasa
(KESRA/JKUAT - Unpublished research project, 2020) Samo, Solomon Odhiambo
Tax is an important and involuntary contribution to the state revenue for funding government projects and therefore governments must make all efforts to ensure it is accurately and adequately collected. This study sought to investigate the factors influencing the compliance on turnover tax among the small and medium sized enterprises in Mombasa North. The study sought to address the following specific objectives; to determine the influence of tax rate on compliance on turnover tax among SMEs in Mombasa North, to establish the influence of tax education on compliance on turnover tax among SMEs in Mombasa North, to determine the influence of tax laws on compliance on turnover tax among SMEs in Mombasa North. The study was anchored on three theories; The Allingham and Sandmo Theory, Fischer Tax Compliance Model and Economic Deterrence Model. The research embraced a cross sectional study approach that depended on the utilization of descriptive and quantitative designs used in the foundation of the connection between turnover tax and tax compliance of the SMEs. The target population comprised of 152 Small and Medium Enterprises in Mombasa North. Stratified random sampling was used to select the sample size of 110 from the different business/activity sectors. This study used questionnaires with fixed choice formats, as well as interviews as the main data collection instruments. A pilot study was undertaken on 10 of the respondents to test the reliability and validity of the questionnaire. Quantitative data were analyzed using SPSS version 25 where relationships between the variables were assessed using correlation and regression analysis. The study found out that there was a positive and significant relationship between tax rate and compliance on turnover tax. Further, the results revealed that there was a positive and significant relationship between tax education and compliance on turnover tax. Lastly, there was a positive and significant relationship between tax law and compliance on turnover tax. Based on the findings, the study concluded that tax rate, tax education and tax laws have a positive and significant effect on compliance on turnover tax. The study recommends the government should consider lowering the tax rates to enhance collections. Lower tax rates make it less attractive to evade taxes as opposed to high rates. Further, to enhance compliance there is need to intensify taxpayer education in terms of increasing the number of sessions and broadening coverage to include tax consultants. Lastly, the study recommends that KRA and other policy makers should consider carrying out tax law amendments that create tax heads that are simple and encourage voluntary tax compliance behavior without much follow up.
Factors affecting Revenue Collection on Second Generation Alcohol by Kenya Revenue Authority in Malindi
(KESRA/JKUAT - Unpublished research project, 2020) Apaa, Edward
Taxation is defined as a means by which governments finance their expenditure by imposing charges on citizens and corporate entities. Governments use taxation to encourage or discourage certain economic decisions. The sale of alcohol has long been subject to excise taxation, charged on the production or sale of specific products. The government’s main objective of imposing excise tax is to discourage consumption of taxed alcohol as well as raise revenue. It’s important to note that there’s a very high prevalence of second-generation alcohol outside of government control, example is Chang’aa, Busaa and Mnazi which has adverse effect on loss of revenue. Illicit alcohol by definition means alcohol whose taxes have not been paid or that was manufactured illegally. This study aimed on investigating factors that affect revenue collection on second-generation alcohol by Kenya Revenue Authority in Malindi. The study was guided by a general objective to assess the factors that affect revenue collection on second-generation alcohol by Kenya Revenue Authority in Malindi. The specific objectives were; To find out how Licensing, Infrastructure and Tax polices of Second-Generation alcohol affects revenue collection of second-generation alcohol by Kenya Revenue Authority in Malindi. The study adopted the Cross-sectional research design while adopting a purposive sampling technique of the target population of 202 respondents that comprised of Distributors of the Second-Generation Alcohol and Revenue Officers in Malindi, a Sample Size of 134 respondents was selected to collect data from, using Slovin’s formula. The study administered Questionnaires as the main data collection instrument. Data collected was analyzed using the SPSS 25 and presented; Descriptive data analyzed and presented in the tables focusing on Measures of central tendency and measures of dispersion. Inferential statistics involved the correlation analysis, linear regression analysis. The study found out that all the independent variables had a positive correlation co-efficient with the dependent variable; they had a moderate positive correlation. That is 0.5
Effect of Tax Innovations on Growth of Small and Medium Enterprises in Kilifi County
(KESRA/JKUAT - Unpublished research project, 2020-09) Kambu, Carlos Mushele
Small and Medium Enterprises play a major role in development of the economy in a country. They make up to 90% percent of the entire economy of a many countries both in the developed and developing nations; they help in creation of employment, development of innovations, economic dynamism which finally leads to national growth and alleviation of poverty. Despite major innovations in taxation and tax policies, Small and Medium Enterprises form the largest group of the hard to tax taxpayers. The main objective of this study was to determine the effect of tax innovations on growth of Small and Medium Enterprises in Kilifi County. The researcher sought to determine the effect of online tax systems, tax legislation and service delivery model on growth of Small and Medium Enterprises in Kilifi County. The study adopted a descriptive cross-sectional survey research design to collect data from respondents. The population was 652 Small and Medium Enterprises in Kilifi County and sample of 248 Small and Medium Enterprises in Kilifi County was drawn from the total population using the Yamanes equation. The study adopted systematic and random sampling techniques. Data collection was conducted using structured questionnaires. The collected data was coded and scientifically analyzed using statistical package for the social sciences, (SPSS) where descriptive and inferential statistical techniques was applied. In the process, a regression analytical test was performed on the variables of the study. Analyzed data was summarized and presented in tables, graphs and charts. The results was examined, justified and valid inferences be drawn. This study found that electronic tax system, tax legislation, and service delivery model positively and significantly affects SME’s growth in Kilifi County. This study concluded that all the independent variables studied had significant effect on the growth of SME’s in Kilifi County The study revealed that among the three variables studied, electronic tax system came out to be most one having the highest variable affecting the growth of SME’s in Kilifi County. This study therefore recommends to KRA to ensure that the role of electronic tax system of helping reduce cost of filing tax is achieved. It is recommended that SME’s organization and other key stakeholders have to invest in robust innovation and more importantly tax innovation that enhances SME’s growth which plays a critical part towards economic growth and development particularly in Kilifi County.
Factors Affecting Performance of the Kenya Revenue Authority in Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-11) Njoka, Isaac Njiru
KRA is mandated to ensure that tax policies relating to revenue mobilization are undertaken. The Authority is mandated to collect these types of taxes: VAT, Pay as You Earn (PAYE), Excise duty tax, Income Tax Corporation Taxes, Customs Duty, Import Duty, Income Tax Individual Business Taxes among others. The general objective of the study was to The study sought to examine the factors affecting performance of the Kenya Revenue Authority in Mombasa. The study focused on the following variables; human resource practices, tax policy and infrastructure as the independent variables and performance of Kenya Revenue Authority as the dependent variable. The study was guided by the following theories; resource based view theory, optimum income taxation theory and Adams Smith canons of taxation theory. This study adopted a cross section survey research design as it was suitable to describe the data at a specific point of time on factors affecting performance of Kenya Revenue Authority in Mombasa. The target population under this study were 137 employees of Kenya Revenue Authority in Mombasa regional Office. Simple random sampling technique was used to select the sample size of 102. A pilot study was undertaken to test the reliability and validity of the questionnaire. Primary data was collected using questionnaires. Quantitative data was analyzed using SPSS version 25. Descriptive analysis measures such as frequency, percentage, mean and standard deviation was used in data interpretation. Regression analysis was used to examine the effects of the independent variables; human resources practices, tax policy and infrastructure and performance of Kenya Revenue Authority (the dependent variable). The R2 analysis was used to measure the goodness of fit of the model being assessed. Correlation analysis was used to determine the strength of relationship between the variables. The study found out that there was a positive and significant relationship between human resources practices and performance of KRA. Further, the results revealed that there was a positive and significant relationship between tax policy and performance of KRA. Lastly, there was a positive and significant relationship between infrastructure and performance of KRA. Based on the findings, the study concluded that human resources practices, tax policy and infrastructure have a positive and significant effect on performance of KRA. The study recommends that the efficient staff recruitment, personnel training, HR development and compensation and rewards should aim at improvement of compliance, improvement of collection of revenue, and prevention of evasion of tax. Further, tax amnesty program with higher tax penalty rate increases tax compliance. tax holidays should have the advantage of simplicity for both taxpayers and the tax authority. Lower tax rates make it less attractive to evade taxes as opposed to high rates. Lastly, a good tax system infrastructure should be responsive to economic growth. In addition, KRA can exceed their target if the internal work environment is very conducive and proper offers supportive infrastructures that will help employees be productive.
Factors affecting Kenya Revenue Authority Service Delivery at Huduma Centre in Tana River County
(KESRA/JKUAT - Unpublished research project, 2020-11) Mwema, Elizabeth Syokau ; Mumia Benn MINCU, CPA.K
Service Centres in Tax Service Offices and Huduma Centres are meant to enhance the efficiency and effectiveness of revenue collection and administration of taxes in Kenya. However, there is still limited use of Huduma Centres to get Kenya Revenue Authority (KRA) services by the public despite the fact that Huduma Centres are widely available. This study determined the factors affecting KRA service delivery across Huduma Centres in Tana River County. The researcher sought to determine the effect of stakeholder relations, infrastructure and human resource on KRA service delivery among residents of Tana River County. This study was founded on the diffusion of innovation theory, stakeholder theory and the SERVQUAL model. The study adopted a descriptive cross-sectional survey research design to collect data from respondents. Respondents were selected using the stratified random sampling. The research questionnaire was presented to ensure it is reliable, using the Cronbach’s alpha coefficient test, and its face and content validity will also be ensured based on consultations with the supervisor. In data collection process, structured self-administered questionnaires was be employed. The collected data was coded and scientifically analyzed using statistical package for the social sciences (SPSS), where descriptive and inferential statistical techniques was applied. In the process, a regression analytical test was performed on the variables of the study. Analyzed data was summarized and presented in tables, graphs and charts. The results were examined, justified and valid inferences be drawn. This research study found that the coefficient of correlation of stakeholder relations showed 75%, infrastructure showed 57% while human resource showed 39.5% This study found that stakeholder relations, infrastructure, and human resource, positively and significantly affects KRA service delivery in Huduma Centres among residents of Tana River County. This study concluded that all the independent variables studied had a significant effect on the KRA Service delivery in Huduma Centre Tana River County as indicated by the p-value which was less than 0.05 at 95% confident level. The study revealed that among the three variables studied, stakeholder relations came out to be most one having the highest variable affecting KRA service delivery in Huduma Centre Tana River County. This study therefore recommends to KRA, County Governments and the Huduma Secretariat to ensure that the role of stakeholder relations of helping KRA services be efficiently delivered is achieved. It is also recommended that SME’s organization and other key stakeholders to invest in infrastructure and human resources to enhance KRA service delivery which in turn plays a critical role towards economic growth and development particularly in Tana River County.
Effects of Tax Policy Reforms on Tax Compliance of Family Owned Business in Mombasa County
(KESRA/JKUAT - Unpublished research project, 2020-11) Ngima, Catherine
This study sought to investigate the effect of tax policy reforms on tax compliance of family owned businesses in Mombasa County. The study sought to address the following specific objectives; to examine the effect of tax administration reforms on tax compliance of family owned businesses in Mombasa county, to examine the effect of tax enforcement reforms on tax compliance of family owned businesses in Mombasa county and to examine the effect of technological reforms on tax compliance of family owned businesses in Mombasa county. The study was anchored on three theories; Economic Deterrence Model, fiscal psychology model and the Allingham and Sandmo theory. The research adopted descriptive research design. The target population of this study comprised of 48,187 family owned businesses. Stratified sampling was used to select the sample size of 382 from the different business/activity sectors. This study used questionnaires with fixed choice formats, as well as interviews as the main data collection instruments. A pilot study was undertaken on 10 of the respondents to test the reliability and validity of the questionnaire. Quantitative data were analyzed using SPSS version 25 where relationships between the variables were assessed using correlation and regression analysis. Stratified sampling technique was used to select the sample size of 382 from the different business/activity sectors. Simple random sampling was then used to select the sample. Both primary and secondary data were collected. The questionnaires were the primary tools used for collection of data where they were self-administered by the researcher and response of 309 was obtained. A pilot study was undertaken on 10 of the respondents to test the reliability and validity of the questionnaire. Quantitative data were analyzed using SPSS version 25 where relationships between the variables were assessed using correlation and regression analysis. The study found out that there was a positive and significant relationship between tax administration reforms and tax compliance. Further, the results revealed that there was a positive and significant relationship between tax enforcement reforms and tax compliance. Lastly, there was a positive and significant relationship between technological reforms and tax compliance. Based on the findings, the study concluded that tax administration reforms, tax enforcement reforms and technological reforms have a positive and significant effect on tax compliance. The study recommends emphasis should be increased on improving tax administration to broaden the tax base so that existing tax rates can be reduced without affecting government revenues. There is need for a well-functioning tax enforcement system to increase tax compliance, tax audits and tax assessment. In embracing new technological reforms, KRA should keep in mind their primary purpose of improving taxpayer compliance and adopt new technologies in a systematic manner that supports their business direction and compliance initiatives.
Factors Influencing Tax Collection by Kenya Revenue Authority in Mvita Sub-County
(KESRA/JKUAT - Unpublished research project, 2020-07) Kariuki, Mary Kahaki
Tax reforms plays a vital role in improving tax collection systems in order to maximize revenue collection to meet the social responsibilities and also fasten economic growth aimed at achieving vision 2030. The major tasks facing the government is the effort to motivate or rather force taxpayers to comply with all the existing tax laws. Despite the undisputed good intentions by Kenya Revenue Authority and a general increase in legislative capacity, tax revenue has unsuccessful shown any mark of dramatic increase hoped for. The aim of the study therefore, was to investigate effect of tax reforms on revenue collection by Kenya Revenue Authority in Mvita Sub-County. The study sought to assess the effect of taxpayer education, to evaluate the effect of technological tax reforms and to determine the effect of administrative tax reforms on revenue collection by Kenya Revenue Authority in Mvita Sub-County. The study was guided by psychological theory, the theory of optimal taxation, and institutional theory and adopt descriptive cross-sectional study. The target population under this study will be all 1691 SMEs in Mvita Sub-County as contained in the Mombasa County database. Structured questionnaires were used in data collection while descriptive and inferential statistics used to analyze the findings. A multiple linear regression model was used to show the link between tax reforms and revenue collection by Kenya Revenue Authority in Mvita Sub-County. The study findings showed that all the tax reforms had a positive and significant individual effect on revenue collection in Mvita Sub-County. Results on the combined effect of tax reforms on revenue collection by Kenya Revenue Authority revealed that taxpayer education reforms, technological tax reforms and administrative tax reforms had a joint positive and significant effect on revenue collection in Mvita Sub-County. The study therefore concluded that implementation of effective tax reforms simultaneously was likely to improve the level of revenue collection by Kenya Revenue Authority. The study recommended that Kenya Revenue Authority should ensure all revenues reforms are available on their websites to enhance easy retrieval. There is need for more automation and adoption of systems that further simply the tax compliance process such as easy access to tax information and its entire tax systems. There is need for carrying out assessments of the effectiveness of different programs, which will ensure that comparisons made and the best combination of programs conducted.
Determinants of Monthly Rental Income Tax Compliance among Landlords in Mavoko Sub-County in Kenya
(KESRA/JKUAT - Unpublished research project, 2020) Mateli, Nancy Mwende
Tax is the main source of government revenue in developing countries as well as developed ones. Although collection of tax has been a challenge especially in the informal sector specifically from landlords who own residential property. The main objective of the study was to establish the determinants of monthly rental income tax compliance from landlords in Mavoko sub County in the last three years. The study looked at the tax rates, tax policies and procedures, and taxpayer knowledge by landlords. The study was guided by; the expected utility theory, benefits received theory, fiscal psychology theory, social psychology theory, and the ability to pay theory. The study was carried out in Mavoko Sub County for the year 2016, 2017 and 2018. The study adopted a descriptive research design targeting 544 landlords in Mavoko Sub County in Kenya. The researcher used a stratified random sampling as well as geographical sampling method to get the right sample size from the target population of 544 landlords where a sample size of 54 landlords was picked where every tenth person was picked from the list of landlords. A semi structured questionnaire was used to collect data from the landlords. The data was then keyed, coded and analysed using the SPSS software, Microsoft excel, inferential and descriptive statistics. The regression model used had three dependent variables namely, tax knowledge, tax rates, and tax procedures and regulation while monthly rental income tax compliance was the dependent variable. The study established that at 5% level of significance, tax knowledge, tax rate, tax procedure and regulation all had a positive beta with p-values less than 0.05. The study concluded that the determinants of monthly rental income tax compliance from landlords in Mavoko Sub County include tax rate, tax knowledge and lastly the prevailing tax procedures and regulations. The study recommends that KRA should harmonize the current monthly rental income tax rate with the East Africa Community so that a standard rate is established. KRA should organize for more tax clinics, seminars and workshops in Mavoko Sub County and provide incentives for those tax payers who attended such education programs. KRA should simplify the tax procedures and regulations and avoid too many bureaucracies in tax administration. The study was limited by the corona pandemic and a sample size of 54 respondents who were the landlords in Mavoko Sub County. Future studies should be conducted covering a relatively larger sample size, probably the whole County or more than one county in Kenya and during pandemic free times. The results of the study are expected inform strengthening of policies and regulations governing monthly rental income tax in Kenya as formulated by KRA. If well implemented, there would be increased compliance with monthly rental income tax which would increase the amount of tax revenues generated and thus the overall growth of the economy.
Effect of Financial Management Practices on Value Added Tax Compliance among Small and Medium Enterprises Taxpayers in Nakuru Town
(KESRA/JKUAT - Unpublished research project, 2020) Njiru, Daisy Muthoni
Taxpayers‟ behavior towards tax system has evoked great attention among many Revenue Authorities in the world, on the other hand, the global business environment has become intensively dynamic and increasingly unpredictable in recent decades, correspondingly, financial management of companies has become more demanding. Hence to achieve this competitiveness companies apply different strategies and financial management should be used as one of the main supporting system for strategy implementation. Having been noted that failure for SMEs to discharge broad financial management functions has contributed largely to tax compliance issues, the study will therefore seek to bridge the gap between financial management practices and tax compliance. Therefore, the study sought to determine the effects of financial management practices on tax compliance. It was guided by the following objectives: to determine the effect of financial reporting on tax compliance among SMEs in Nakuru Town, to establish the effect of cash management on tax compliance among SMEs in Nakuru Town and to analyze the effect of budget planning on tax compliance among SMEs in Nakuru Town. The study adopted cross-sectional survey design with a population of 452 registered small and medium enterprises in Nakuru Town. The sample was selected based on Sloven‟s formula, thus a sample of 212 respondents was selected using simple random sampling. Structured questionnaires was used as data collection instruments and analyzed through Statistical Package for Social Sciences (SPSS).Data collected from the questionnaires was analyzed using descriptive and inferential statistics.The study findings indicated that financial reporting(β = 0.103; ρ < 0.05), cash management (β = 0.393; ρ < 0.05) and budget planning(β = 0.328; ρ < 0.05) had significant relationship with VAT tax compliance among SMEs in Nakuru Town. Therefore, it is recommended that manufacturing firms should ensure that aspects relating to budgeting techniques are enhanced to ensure attainment of financial planning objectives, cash planning should be emphasized to maintain an optimal cash balance which can be invested in other ventures, inventory policies and systems to be established to prevent shortages and stock out costs and enhances their investment planning practices to enable firms meet short term obligations.
Effect of Tax Incentives on Rental Income Tax Performance by Kenya Revenue Authority in Mombasa
(KESRA/JKUAT - Unpublished research project, 2020-11) Githae, Catherine Njeri
The general objective of the study was to investigate the effect of tax incentives on rental income tax performance by Kenya Revenue Authority in Mombasa. The study focused on the following variables; capital allowance incentives, tax rate and tax holiday incentives as the independent variables and rental income tax performance by Kenya Revenue Authority as the dependent variable. The study was guided by the following theories; Adams Smith canons of taxation theory, tax discrimination theory and Neo-classical economic theory. This study adopted a cross section survey research design as it was suitable to describe the data at a specific point of time on the effect of tax incentives on rental income tax performance by Kenya revenue authority in Mombasa. The target population under this study were 137 employees of Kenya Revenue Authority in Mombasa regional Office. simple random sampling technique was used to select the sample size of 102. A pilot study was undertaken on 10 of the respondents to test the reliability and validity of the questionnaire. Primary data was collected using questionnaires. Quantitative data was analyzed using SPSS version 25. Descriptive analysis measures such as frequency, percentage, mean and standard deviation was used in data interpretation. Regression analysis was used to examine the effects of the independent variables; capital allowance incentives, tax rate, tax holiday incentives and rental income tax performance (the dependent variable). The R2 analysis was used to measure the goodness of fit of the model being assessed. Correlation analysis was used to determine the strength of relationship between the variables. The study found out that there was a positive and significant relationship between capital allowance incentives and rental income tax performance. Further, the results revealed that there was a positive and significant relationship between tax rate and rental income tax performance. Lastly, there was a positive and significant relationship between tax holiday incentives and rental income tax performance. Based on the findings, the study concluded that capital allowance incentives, tax rate and tax holiday incentives have a positive and significant effect on rental income tax performance. The study recommends that the tax authority should introduce a policy of carrying over investment allowance that is not utilized in the current year to the subsequent year as an advantage to the residential property owners to reduce their tax liability. Further, the government should consider lowering the tax rates to enhance collections. Lower tax rates make it less attractive to evade taxes as opposed to high rates. Lastly, a tax holiday amnesty must be compatible with the purposes of an income tax system.