Factors influencing tax compliance among small and medium enterprises in Nairobi county
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Date
01-10-18
Authors
Ngove, Beatrice Mwikya
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The main objective of the study was to examine factors influencing tax compliance among small scale enterprises in Nairobi County with special focus on SMEs in Toi market. The study contributes to the larger literature in the field of tax compliance and also industry players will understand some of the factors that are likely to influence tax compliance among small scale enterprises. The study was guided by the following objectives: To examine the influence of tax knowledge on tax compliance among small scale enterprises in Toi market, to establish the influence of tax rates on tax compliance among small scale enterprises in Toi market, to find out the influence of compliance cost on tax compliance among small scale enterprises in Toi market and to examine the influence of perception on tax compliance among small scale enterprises in Toi market. In examination of factors influencing tax compliance, this study utilizes two theories: Deterrence Theory and Psychology Theory. The target population was all SMEs operating within Toi market who are approximately 500 and 26 KRA Compliance staff based in East of Nairobi Station that is in charge of taxpayers in East of Nairobi areas where Toi market falls under. Considering nature of the study, a sample of 30% of the population (53) was used and a simple random sampling was adopted with questionnaire as the data collection instrument. The study analyzed both quantitative and qualitative data and the findings are presented using frequency tables, pie charts and graphs. The study had high response rate of 92%. The survey data indicate that regarding at least certain elements of the relationship between how fair individuals perceive the tax system to be and their levels of tax compliance, there may be distinct differences.
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Keywords
Toi Market, Tax Compliance, Nairobi County