Influence of Tax Information on Tax Compliance among the Small and Medium Scale Enterprises in Thika Town

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Date

2018-10

Authors

Nyokabi, Beatrice Wanjiru

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Publisher

KESRA/JKUAT - Unpublished research project

Abstract

This study sought to find out the influence of tax information on tax compliance among the SMEs in Thika Town, specific research objectives were; to analyze how Tax Knowledge affects tax compliance among SMEs, to determine the impact of information technology awareness on tax compliance among SMEs and to assess how Accounting information by SMEs owners affect tax compliance among SMEs. Theoretical review consisted of theory of Planned Behavior, Allingham and Sandmo theory and the ability to pay theory. The study was based on descriptive research design and adopted questionnaire for primary data collection. The target population was 500 SMEs owners in Thika Town, the study used random sampling of 150 respondents who are small scale traders in Thika Town as a sample population. After collection data was analyzed via use of statistical software. From the analysis, all the three variables had a positive and significant correlation to tax compliance with the rank as r = 0.368, r = 0.678, r = 0.766 on information on filing period, information on tax rates and tax filing process respectively. The regression analysis showed all the three variables had positive impact on tax compliance with the information on tax filing process at 0.687 units, information on tax rates came in second with 0.232 units and information on filing period was third with 0.180 units. Finally, the study recommends that the KRA should devise appropriate policies that ensure efficient payment of taxes in a system that is very flexible to enhance on the compliance.

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Keywords

Compliance, Thika

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