Effect of Technological Reforms on Value Addedd Tax Compliance among Medium Sized Firms in Kisumu Town

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dc.contributor.authorAbuya, Lina Atieno
dc.date.accessioned2021-09-13T11:37:30Z
dc.date.accessioned2022-06-07T06:50:41Z
dc.date.available2021-09-13T11:37:30Z
dc.date.available2022-06-07T06:50:41Z
dc.date.issued2020
dc.descriptionTax Administrationen_US
dc.description.abstractThe inception of tax reforms in Kenya can be traced back to early 1980s when the Session Paper 1 of 1986 was drafted and adopted. Despite the efforts by KRA to institute technological reforms including the introduction of the i-tax, the value added auto assessment system and the need for tax payers to pay taxes through their mobile phones as well as electronic tax registers, the level of tax compliance especially VAT has consistently remained low. The study therefore sought to determine the interaction between technological tax reforms and VAT compliance among medium sized firms in Kisumu. Specifically, the study focused on determining how the electronic tax registers, integrated tax (i-tax) system and KRA M-Service affected value added tax compliance among medium sized firms in Kisumu town, Kenya. The Economic Deterrence Theory and the Technology Acceptance Model provided anchorage to the study. The study adopted a descriptive design and a total of 370 managers, supervisors and owners of medium sized firms operating in the service sector in Kisumu town were targeted. The study used stratified random sampling technique to select 188 managers, supervisors and owners from these firms the service sector as the sample size. A pilot study was conducted to determine reliability and validity of the study instruments before actual data collection in the field. Information for the study was gathered with the aid of questionnaires that had open and close ended questions. The analysis of the collected data was conducted using descriptive, inferential and content analysis with the aid of Statistical Package for Social Sciences (SPSS) version 23 for quantitative data. The results were presented using Tables and Figures. The study established that electronic tax registers, i-tax system and KRA M-service all have significant effect on VAT compliance. The study concludes that technological tax reforms have postive and significant effect on VAT compliance. The study recommends that there is need for enhancement of ETRs to allow real time and online transmission of transaction data from firms to KRA system by speeding up the implementation of Tax Invoice Management System (TIMS). I-tax system needs to be configured so that medium sized firms are able to upload data directly from their systems to the i-tax. There is need to bring in other network operators apart from Safaricom Mpesa in the KRA M-service. The other network operators include Airtel and Telecom Kenya besides Equitel, a product by Equity Bank Group. The charges of paying VAT through mobile phones should be reduced to allow more firms to pay their VAT dues using KRA M-services. The results of the study are expected to strengthen policy formulation on technological tax reforms in Kenya.en_US
dc.identifier.urihttps://ikesra.kra.go.ke/handle/123456789/1671
dc.language.isoenen_US
dc.publisherKESRA/JKUAT - Unpublished research projecten_US
dc.subjectElectronic Tax Registeren_US
dc.subjectIntegrated Tax System (iTax)en_US
dc.subjectKRA M-serviceen_US
dc.subjectVAT complianceen_US
dc.titleEffect of Technological Reforms on Value Addedd Tax Compliance among Medium Sized Firms in Kisumu Townen_US
dc.typeProjectsen_US

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