Factors affecting vat compliance amongst retail supermarkets in Kisumu County, Kenya.
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Date
2019
Authors
Misuko, Sarah Kerubo
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Taxation is how governments raise money to fund their expenditure and development projects. Tax revenue required is to be raised by proportionate taxes on some or all the revenues. Tax collection is among the oldest practices and recently been considered as ―one pillar of a stable nation that may also provide a basis for accountable and responsive democratic state systems. It is against this background that this study was conducted in order to determine the factors affecting VAT compliance amongst retail supermarkets in Kisumu County, Kenya. The specific objectives of this study were: To determine how taxpayer education affects VAT compliance, to determine how taxpayer perceptions affect VAT compliance, to determine how compliance costs affect VAT compliance and to determine the effects of enforcement measures on VAT compliance amongst retail supermarkets in Kisumu County, Kenya. The theories that were used in this study are economic deterrence theory, ability to pay theory and cost of service theory. The target population was Kisumu County, Kenya's eight retail stores. The study gathered primary data using semi-structured questionnaires with respect to the variables influencing VAT compliance among retail supermarkets. The data captured was coded and analysed using statistical measurements such as percentages, sums, mean and standard deviations. To analyze the collected information, ANOVA, descriptive and inferential statistics, linear regression and correlation models were used. The matrix of correlation was used to investigate the connection between the dependent variable and explanatory variables. The study established that Taxpayer Education, Taxpayer Perceptions, Compliance Costs and enforcement measures have a positive and significant effect on VAT compliance. The study recommended that KRA should empower the taxpayer education services division to enable taxpayers to be trained in order to understand their tax rights and obligations.
Description
PROJ 330 MIS
Keywords
Tax Administration, Tax Audits, Tax Compliance, Tax Evasion, Value added tax