Factors affecting the uptake of tax amnesty by real estate owners in Mombasa, Kenya
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Date
2019
Authors
Wanjohi, Charles Muchiri ; Mumia Benn MINCU, CPA.K
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Globally people tend to have a negative perspective towards payment of tax. This means that the government at times if not all times does not collect what is due to it because of noncompliance. Kenya revenue authority and various county governments have offered tax amnesty to defaulters. Despite all these efforts by the government to entice defaulters, the uptake of tax amnesty has been low. The study thus aims at analyzing the factors affecting the uptake of tax amnesty by real estate owners in Mombasa, Kenya. The objectives of the study are to investigate whether enforcement, taxpayer education and politics has an effect in the uptake of tax amnesty among real estate owners in Mombasa, Kenya. This research project adopted a descriptive research design. The study is based on the Kenya revenue authority officers and management in Mombasa Southern region. The target population for this study was the real estate owners in Mombasa region whose tax compliance was under review by the Kenya Revenue Authority. The population was 1240 real estate owners according to Kenya Revenue Authority Report (2017) report. Stratified random sampling method was used to select relevant respondents from the real estate owners in Mombasa region whose tax compliance was under review by the Kenya Revenue Authority. The researcher used the drop and pick method whereby the questionnaires were given out to the respondents for them to fill out. The researcher then collected them at a later time for data analysis. The collected data was analyzed quantitatively. Descriptive and inferential statistics were done using SPSS version 25. The results were presented in table forms for ease of comparison and understanding. From the model summary it is clear that the adjusted R2 was 0.908, explaining 90.8% of the variance of the independent variable (Enforcement of tax amnesty, Taxpayer Education, and Politics) indicating that; Enforcement of tax amnesty, Taxpayer Education, and Politics have significant effect on uptake of tax amnesty by real estate owners in Mombasa. Thus factors not studied in the research contribute 9.2% of uptake of tax amnesty by real estate owners in Mombasa. The P- value of 0.000 (Less than 0.05) implies that the model of project on tax amnesty uptake on real estate in Mombasa, Kenya is significant at the 95% confidence level. The researcher concluded that inadequacy in enforcement of tax amnesty, lack of tax payer education on tax amnesty and low frequency of tax amnesty negatively affected uptake of tax amnesty by real estate owners in Mombasa. The study thus recommends that KRA should revamp the enforcement department and transform law enforcement to be more tax payer friendly. Consultants should also be sensitized on tax amnesty matters to empower them, give proper advice to tax payers. Also, the mode of disseminating information about amnesty should be well thought out to have a wide coverage so as to reach majority of tax payers. KRA officers should also have a positive attitude towards amnesty and should be alert to facilitate tax payers. Finally, since most tax payers are reluctant to comply due to frequent amnesty, the authority should reduce the number of amnesty offered in a particular period.
Description
Keywords
Tax, Amnesty, Taxpayer