Effects of tax reforms on tax compliance of small and Medium enterprises in Kenya: A case of Mombasa county
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Date
2019
Authors
Otieno, Beryl Akoth
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
In recent years, Kenya has experienced Tax compliance fluctuations, which have had an impact in the economy. It has had an effect on the country's competitiveness, international trade, inflation and general economic growth. This research therefore assessed the effect of each determinant factor on Tax compliance by examining the Withholding value added Tax, Rental Income Tax, and Itax system as the Independent variables of Tax Compliance. The study examined the global major studies with a focus on the big three determinants. The study employed a questionnaire to collect primary data for the period January, 2018 to September 2018 sourced from the Kenya Revenue Staff and Kenya Revenue websites. The research utilized descriptive statistics in the evaluation of the study by performing Regression Analysis and Correlation Analysis using the Statistical Package for Social Sciences (SPSS). Linear Regression Model was the empirical model used to analyze the depth of influence of each of the determinants on Tax Compliance by regressing tax compliance against changes in the determinants. The Pearson Product Moment Correlation was used to test the relationship between the variables. Tables, graphs and charts were used to present the findings. The study established that most of the SMEs operators had considerable experience and they had been in existence for a while. Based on the findings it can be concluded that the three tax reform determinants have positively resulted in tax compliance by SMEs.