Factors Influencing Tax Compliance of Residential Rental Income Taxpayers in Makadara Sub-County, Nairobi, Kenya
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Date
2022-09-01
Authors
JANET, MORAA KINARA
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
In Kenya, tax targets are seldom achieved due to low tax compliance. The KRA is expected to achieve an efficiency rate of 95 percent of the exchequer and therefore this requires high levels of tax compliance. This study sought to assess factors influencing tax compliance on residential rent income in Makadara sub-county, Nairobi, Kenya. The specific objectives were to establish the effect of tax knowledge, to find out the effect of tax audits, to assess the effect of financial base and to establish the effect of taxpayers’ attitudes on tax compliance among residential rental income taxpayers in Makadara Sub-County. This study was based on Economic deterrence theory, Theory of planned behavior, Theory of reasoned action and Allingham and
Sandmo theory. This study adopted a descriptive research design. The population of this study was nine hundred and thirty-four residential landlords. The sample for this study was 100 residential landlords of Makadara Sub-County drawn from the records held by Kenya Revenue Authority. This study used primary data that was sourced using a questionnaire. Data analysis was done using both descriptive and inferential statistics. The outputs for data analysis were presented on tables and graphs. Results established that tax knowledge had a positive and significant effect on residential rent income tax compliance. Tax audits had a positive and significant effect on residential rent income tax compliance. Moreover, financial base had a
positive and significant effect on residential rent income tax compliance. However, negative taxpayers’ attitudes had a negative effect on residential rent income tax compliance. It is recommended that KRA should undertake taxpayer sensitization and education program to improve tax knowledge and also increase frequency of tax audits to boost tax compliance.
Description
Tax Administration
Keywords
Tax Compliance