Factors affecting small and medium enterprises on VAT taxation In Kenya

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Date

2019

Authors

Omondi, Albert Donny

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Publisher

KESRA/JKUAT - Unpublished research project

Abstract

The purpose of the study was to investigate the factors affecting taxation of small and medium entrepreneurs in Kenya. The study used descriptive research design with a target population of 79. The study adopted census method to arrive at a sample size. The study used both primary and secondary data collection through questionnaires. Pilot study was carried out which gave a Cronbach’s alpha greater than 0.7 for all the variables as a rule of thumb. Data was analyzed by use of descriptive statistics and inferential statistics using Standard statistical techniques including Pearson correlation coefficient and regression analysis employed in the analysis. The data was analyzed by use statistical package for social sciences (SPSS Version 24). Analysis of variance (ANOVA) used to establish if there is a statistical significance between the observed and expected values with the Pearson Chi square giving the degree significance of the relations, hence establishing the hypotheses. In multivariate analysis, multiple regression analysis models were used to determine the type of the relationship that existed between independent and dependent variables. Results obtained were presented using tables and graphs for ease of understanding and interpretation. In addition, both correlation and regression analyses were done and summaries presented. Both descriptive and inferential statistics were used to analyze the data. Statistical significance of relationships among selected variables was determined using multiple regression analysis. The study established that financial literacy, book keeping and financial requirements had a significant effect on tax compliance in Machakos County.

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Keywords

Capital requirements, Financial literacy, Taxation

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