Factors affecting tax compliance by small and medium enterprises in Meru town, Meru county
| dc.contributor.author | Gatobu, Lesley Kathure | |
| dc.date.accessioned | 2020-02-19T12:04:17Z | |
| dc.date.accessioned | 2022-06-07T06:47:51Z | |
| dc.date.available | 2020-02-19T12:04:17Z | |
| dc.date.available | 2022-06-07T06:47:51Z | |
| dc.date.issued | 2019 | |
| dc.description.abstract | Taxation is the main source of revenue for government funding and therefore all efforts must be made by governments to ensure accurate and efficient collection. The aim of the study was to determine whether tax fines and penalties, tax knowledge and education and perceived opportunity for tax evasion variables have an impact on tax compliance among SMEs in Meru Town area. A sample size of 97 was picked and data collected using a self-administered questionnaire. The study found 96.6% of Kenyans feel the tax rates are high and in many forms which hinder compliance. Inadequacy or lack of tax information tailored to be understood by the tax payers contributed to the inability and/or inaccurate calculation on tax payable by the SMEs affecting 82% of the respondents. The SMEs view that there are few tax evasion opportunities they are aware of but 44.8% agree most business don‟t report taxes fairly and under declaring increases profits. The findings of the study further revealed that the three variables under study do influence the tax compliance at P<0.05. The dependent variables account for 47.7% of the variability in the independent variable, tax compliance, indicating tax knowledge and education, perceived opportunities for tax evasion and tax fines and penalties can explain 49.6% of factors influencing tax compliance. Understanding the underlying factors and tailoring tax information dissemination and collection approaches would greatly improve taxpayers‟ tax compliance level, which would improve revenues collection providing resources for improved government services. The study recommends increased taxpayer education; enhance surveillance and monitoring to increase compliance. | en_US |
| dc.identifier.uri | https://ikesra.kra.go.ke/handle/123456789/566 | |
| dc.publisher | KESRA/JKUAT - Unpublished research project | en_US |
| dc.subject | Tax Knowledge | en_US |
| dc.subject | Tax Laws | en_US |
| dc.subject | Tax evasion | en_US |
| dc.title | Factors affecting tax compliance by small and medium enterprises in Meru town, Meru county | en_US |
| dc.type | Article | en_US |