Determinants of residential rental income tax compliance by landlords in west of Nairobi district Kenya.
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Date
2019
Authors
Njiru, Anne Rita Makena
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Kenya still faces the challenge of low tax compliance in the real estate sector. Therefore, the primary goal of this research was to study factors determining collection of rental income taxes by Kenya Revenue Authority in west of Nairobi district. The specific objectives were to establish the effect of property owners’ perception on monthly residential rental income tax compliance, to find out the effect of tax knowledge on residential rental income tax compliance and finally to determine the effect of technology on residential rental income tax compliance. The theoretical framework was based on the theory of economic deterrence, theory of planned behavior and theory of technological acceptance. The study adopted a descriptive research design. The target population comprised of 19,000 residential property owners who are taxpayers in West of Nairobi district. The study selected a sample of 190 respondents using simple random sampling. Primary data was used where questionnaires were used for primary data collection and for secondary data was obtained from journals which represent academic research. Data analysis was done using descriptive statistical tools and the multiple regression method with the help of statistical package for social sciences (SPSS). The study finding indicated that taxpayer perception, tax knowledge and technology signficantly affects tax compliance in west of Nairobi district. The study concluded that taxpayers’ perception, tax knowledge and technology are significant determinants of residential rental income tax compliance by landlords in West of Nairobi district in Kenya. The study recommends that KRA and the government should investment more in technology and also create awareness on technology usage by tax payers to encourage residential rental income tax compliance.
Description
PROJ 343.73 NJI
Keywords
Taxpayers’ perception, Tax knowledge, Residential rental income tax compliance