Effect of online tax system on value added tax compliance among micro and small taxpayers in Nairobi county: a case study of Starehe sub-county.
Loading...
Date
2019
Authors
Njoroge, Fridah Wangui
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Globally, the tax administration process is changing rapidly. Tax authorities worldwide are under obligation to maintain a modernized and responsive tax administration system in-order to curb vices such as tax evasion and noncompliance. In view of this, the primary goal of this study was to establish the effect of online tax system on value added tax compliance among micro and small taxpayers in Starehe sub-county. The study was guided by the following specific objectives: to establish the effect of online registration on VAT compliance among micro and small taxpayers in Starehe sub-county, to determine the effect of online filing on VAT compliance among micro and small taxpayers in Starehe sub-county and to analyze the effect of online remittance on VAT compliance among micro and small taxpayers in Starehe sub-county. This study utilized compliance theories namely; the fiscal exchange theory, the economic deterrence theory, and the ability to pay theory. The study adopted descriptive research design. The target population was730 respondents. The study adopted a systematic sampling technique. A sample of 260 taxpayers was considered in this study. This study used primary data that was collected through questionnaires. Data analysis was done using descriptive statistics as well as inferential statistics with the help of the Statistical package for Social Scientists (SPSSVersion.24). The study findings indicated that online registration (B=0.141, p value=0.046), online filing (B=0.344, p value=0.028) and online remittance (B=0.428, p value=0.002) was also positively and significantly related to Tax compliance among micro and small taxpayers in Starehe Sub-County. The study therefore concluded that online tax system influence VAT compliance among micro and small taxpayers. Based on the findings the study recommends that KRA embraces all the iTax system components, revenue collection, accounting KRA should strengthen its tax registration and processing systems to enhance efficiency.
Description
PROJ 343.73 NJO
Keywords
Tax Compliance, Tax Information, Tax Administration, iTax