Factors affecting tax compliance of residential income among landlords in Mombasa County
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Date
2019
Authors
Kamau, Elizabeth Ng’endo ; Mumia Benn MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Taxation is the primary source of revenue for governments throughout the world to implement their social and political agendas and to deliver services to the citizens. In Kenya, increased government expenditure and the need to finance government activities using local sources of funds has called for the government to bring into the tax net sectors that have remained untaxed before. In 2012/2013 budget speech, a lot of emphasis was put that rental income was subject to taxation. Previous statistics indicated that less than half of landlords and developers had complied with tax requirements. The purpose of the study was to examine the factors affecting tax compliance of residential rental income among landlords in Mombasa County. The study was guided by the following research objectives: To find out the effect of tax systems on tax compliance on residential rental income among the landlords in Mombasa County; to determine the effect of optimal resource utilization on tax compliance on residential rental income among the landlords in Mombasa County; and to establish the effect of customer service delivery on tax compliance on residential rental income among the landlords in Mombasa County. The study adopted a descriptive research design and its target population in the study were the landlords in Mombasa County. The stratified random sampling technique was employed to obtain a sample size of two hundred and twelve (212) respondents as it is necessary for the nature of the subject. The study used questionnaires for gathering and collecting data. Presentation of data was done in the form of tables for easy interpretation. To guarantee actual and competent data analysis process, the data was coded, organized and studied using descriptive and inferential analysis. The Statistical Package for Social Sciences (SPSS) was used for analysis. Study findings revealed that tax system, optimal resources utilization and customer service delivery have significant effect on tax compliance among Mombasa landlords in Mombasa County with t=8.193; p=0.000, t=6.960; p=0.000, and t= 2.542 p=0.012 respectively and collectively with R-square value of 0.883. From the findings, the study recommends that; the organization should introduce a simple tax system to make it easy and user friendly and enforce to enhance accountability in all its taxpayers; in order to increase tax compliance among Mombasa landlords, organization should reach out landlords and educate them on how to file returns and consequences of non-compliances; and the organization incorporates and adopts different technologies to track non-compliance landlords.
Description
Keywords
Compliance