Factors affecting value added tax compliance among small and medium enterprises in Kajiado town, Kenya.
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Date
2019
Authors
Orwa, Teresa Atieno
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Tax compliance has been a matter of key concern for both researchers as well as tax administrators. Low rates of Value Added Tax compliance is one of the internal factors that contribute towards shortfall in Value Added Tax revenue in Kenya. This study investigated the factors that affect Value Added Tax compliance among Small and Medium Enterprises in Kajiado town, Kenya. Specifically, the study found out the effect of tax knowledge, tax compliance costs and taxpayers perception on Value Added Tax compliance in Kajiado town, Kenya. The theories for the study are: deterrence theory and theory of planned behavior. The study adopted descriptive research design. The target population for this study was 241 SMEs that are located in Kajiado town and that have been registered for Value Added Tax according to the records of Kenya Revenue Authority in Kajiado County for the financial year 2017/2018. This study used both secondary and primary data. Primary data was acquired using structured questionnaires with closed questions and secondary data was acquired from existing revenue publications and reports. The study concluded that Tax Knowledge had positive relationship on Value Added Tax Compliance among SME owners in Kajiado town. Also Tax Compliance Costs had positive relationship on Value Added Tax Compliance and lastly Taxpayer Perception had positive relationship on Value Added Tax Compliance. The study further concluded that Tax Knowledge variable had the weakness influence among the independent variables on the dependent variable of Value Added Tax Compliance. Future studies may be conducted on the influence of Taxpayer perception on Value Added Tax Compliance among SME traders in other towns in the Country such as Bomet, Narok and Kericho.
Description
PROJ 330 ORW
Keywords
VAT compliance, SMEs, Tax Knowledge, Tax Compliance Cost