Effect of taxpayer facilitation on value added tax compliance: a case of small and medium scale traders in Nairobi’s central business district
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Date
2019
Authors
Genevieve, Akinyi Ochar
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
As the main source of revenue for governments worldwide, the effectiveness and efficiency of tax collection cannot be gainsaid. However, studies indicate that tax non-compliance is a perennial problem in majority of the countries in the world. The private sector significantly contributes to the Kenyan economy by offering employment to very many people and through tax remittances to the government. Yet, the SMEs which dominate the private sector face numerous tax non-compliance issues. The main objective of this study was to examine effect of taxpayer facilitation on value added tax compliance by small and medium scale traders in Nairobi’s Central Business District. The study was guided by Deterrence theory of taxation and the fiscal exchange theory. The study adopted a descriptive survey design. The sample size was 40 small medium scale traders in Nairobi central business district along Luthuli Avenue. The response rate was 78%. Both primary and secondary data was used where questionnaires were employed to collect primary data while secondary data was obtained from KRA website and other academic materials. Both descriptive statistics and inferential statistics were carried out with the help of the SPSS software. The study established that taxpayer facilitation was very instrumental in value added tax compliance by small and medium enterprises. Based on research finding it can be concluded that customer care, taxpayer education and online filing influences value added tax compliance. The study recommends that KRA should do more taxpayer sensitization to all the taxpayers to ensure that information reach the right people. The study therefore suggested that future studies focus on other large entrepreneur and government agencies for purposes of comparison.
Description
PROJ OCH
Keywords
Value Added Tax, Tax Compliance