Factors affecting collection of taxes among real estate owners a survey of Lang’ata sub-county, Nairobi county
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Date
01-11-20
Authors
Mulama, Andrew Othieno
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The topic of tax collection has been of great concern to researchers in developed and developing nations globally. Taxation of the real estate industry has been classified as economic in most third world countries. The Domestic Taxes Department of the Kenya Revenue Authority is responsible for collection of revenue from the real estate owners and the landlord. The ability of the department to meet its objectives is the performance by which it will be judged by. The domestic tax department has several enforcement arms amongst them the rental income unit which are employed to aid in achievement its objectives. This study focused on the factors affecting the collection of taxes among real estate owners in Lang’ata sub-county. The general objective of this study was to determine factors affecting collection of tax in the real estate sector in Lang'ata Sub-County.The Specific objectives of the study were to establish whether data driven approach has enhanced tax collection among real estate owners in Lang’ata sub-county, to determine whether taxpayers knowledge of tax legislation has an effect on collection of taxes in real estate sector in Lang’ata sub-county and to establish whether enforcement measures have an effect on the level of collection of taxes in the real estate sector in Lang’ata sub-county. These objectives are crucial if the domestic tax department and the Kenya Revenue Authority as an organisation are to be considered successful. The theories that are relevant to the study include the institutional theory, resource based and the deterrence theory. The study was descriptive based research on the need to give an elaborate explanation on the factors that affect the collection of rental income tax in Lang’ata sub-county. A research gap of training more officers was identified. A sample size of 40 out of a population of 44 respondents was used in the collection of data. Stratified sampling technique was used in the collection of data. The data analysed was collected using both open ended and closed questionnaires from the respondents. The researcher will then use SPSS version 25 to analyse data and the linear regression model to show the correlation between the independent and dependent variables. From the findings it is evident data driven approach and other variables used in the study affect rental income collection.From the findings it was established that rental unit needs to employ more trained officers. However, from the study findings it was established that majority of the respondents disagreed that the benefits of the rental unit exceeds its operational costs. In addition, the study established that landlords in Langat sub-county are more open in their declarations because of the rental income unit. The study concludes that the enforcement measures is a more cost effective tool compared to other method and the rental unit does not earn domestic tax department a lot of extra revenue. The study recommends that the rental unit should invest more on training to curb tax evasion. Finally, the study recommends that the rental unit should be financially supported since it helps rental officers to easily and efficiently collect taxes
Description
Unpublished Research Project
Keywords
Real Estate