Factors affecting automated tax systems on revenue collection among small and medium enterprises in Kenya : a case study of west of Nairobi station
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Date
2019
Authors
Githinji, Mary N
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
This study aims to establish the factors effecting automated tax systems on revenue collection in Kenya. The study was guided by the following specific objectives: - to determine the effect of tax compliance costs on revenue collection in Kenya, to analyze the effect of technical skills and knowledge on revenue collection in Kenya, to assess the effect of tax rates on revenue collection in Kenya and to determine the effect of penalties and interests on revenue collection. The study adopted a descriptive Research design. The target population of 98 was drawn from West of Nairobi Tax Station. The study used primary data collected through closed structured questionnaires to meet the objectives of the study. A pre-test on a different sample was carried out to give a Cronbach’s alpha greater than 0.7 for all the variables as a rule of thumb. Data analysis used of descriptive statistics and inferential statistics was done using Standard statistical techniques including Pearson correlation coefficient and regression analysis employed in the analysis. All the analysis was carried out using the statistical package for social sciences (SPSS Version.24). Analysis of variance (ANOVA) was 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 model was used to determine the type of the relationship that existed between independent and dependent variables. The study found that Tax compliance cost, penalties and interest and tax rate significantly influences revenue collection. Based on study finding, this study recommends there is need for effective cost management when administering tax. Reduction in cost of compliance will increase the number of registered traders which will increase revenue collection. Kenya revenue Authority should offer on a regular basis technical support to traders which will help them familiarize with tax systems in order to facilitate collection of revenue collection. Technical support will help traders reduce the transaction time in serving their clientele and transparency in service delivery.
Description
PROJ GIT
Keywords
Automated Tax Systems, Small and Medium Enterprises