Factors Influencing Residential Income Tax Compliance among Property Owners in Kisumu West Sub County Kenya

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Date

2022

Authors

Genevieve, Wasonga

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Publisher

KESRA/JKUAT

Abstract

The purpose of the study was to determine the factors influencing residential income tax compliance among property owners in Kisumu County. A case of Kisumu west. The specific objectives were; to assess the effects of cost of compliance on residential tax compliance among real estate investor in Kisumu west, to assess the effects of taxpayers knowledge on residential income tax compliance among real estate investor in Kisumu west and to evaluate the effects of technology on residential income tax compliance among real estate investor in Kisumu west. A descriptive survey was used for the study. The study targeted 2761 residential property owners in Kisumu West. Simple random sampling was used to select the 276 participants. The data was quantitative and was analyzed using descriptive and inferential statistics. The study found that was a significant negative effect of cost of compliance on residential tax compliance among real estate investor in Kisumu west. The investors hire experts to file their tax returns and also have to incur costs to access tax stations for inquiries. There was a significant positive effect of taxpayer knowledge and technology on residential income tax compliance among real estate investor in Kisumu west. Failure to comply with rental income taxation requirement is punishable by law. Taxation enables government to bring development to the citizens. Technology enables the investors meet their tax compliance obligations. The study recommends that residential property owners should be trained by KRA on the filling procedures and I-tax system usage to reduce the cost of outsourcing such service to experts. KRA should develop programs to create awareness on residential rental income tax compliance by residential property investors. KRA should also ensure that in the adoption of technology the end users should be educated and couched on the usability of such technologies

Description

Post Graduate Diploma in Tax Administration

Keywords

Compliance costs, Tax compliance, Residential income

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