Effect of tax system automation on value added tax compliance among small and medium enterprises in Kisumu county, Kenya
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Date
2019
Authors
Mackenzie, Irene Mwongeli
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
VAT compliance has remained a contingent issue among the developed and developing countries around the world. Unlike developed economies, failure to comply with taxes is more evident among developing and other emerging economies. Kenya is one of the developing. The study sought to establish the effect of tax system automation on value added tax compliance among small and medium enterprises in Kisumu County. Specifically, the study focused on electronic tax payer registration system, electronic filing and electronic payment system and their influence ion VAT compliance. The study was supported by two theories namely technology acceptance model theory and the Allingham and Sandmo (AS) theory. The design adopted in the study was descriptive. A total of 451 SMEs operating in Kisumu City were targeted. The study used stratified random sampling to sample out 221 SMEs. Primary data was collected using questionnaires. The analysis of the collected data was done using descriptive and inferential statistics. The study established that electronic tax payer registration, electronic filling and electronic payment all positively and significantly influence VAT compliance. The study concludes that tax system automation has positive and significant effect on VAT compliance. The study recommends that KRA should consider integrating the i-tax with the tax payer registration, filing and payment system so that these activities can be carried out simultaneously.
Description
PROJ MAC
Keywords
Tax Compliance, Tax System Automation, Small and Medium Enterprises