Factors Affecting Administration of Turnover Tax among Small and Medium Enterprises in Nyali Constituency, Mombasa County
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Date
2020
Authors
Nyambu, Gladys Machocho
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The problem of tax administration is universal to both developing and developed country with tax evasion being a great challenge in the collection of adequate taxes for financing public projects. The purpose of this study is to find out the factors affecting the administration of turnover taxes among small and medium enterprises in Nyali constituency, Mombasa County. The study's specific objectives were to; establish the effect of tax structure, assess the effect of tax policies, and to establish the effect of stakeholder awareness on the administration of turn over taxes among small and medium enterprises in Nyali constituency in Mombasa County. The study adopted a cross-sectional, the target population for the study was 1238 owners of small businesses in Nyali constituency in the sale of agricultural produce, boutique, beauty, retail, and repairs. The sample for the study was established through the Yamane Formula which gave a sample of 175 respondents. The sample was proportionately spread across the clusters to be representative. Data for the study was collected through questionnaires. The questionnaire had Likert scale questions that were administered by field data collection assistants through drop and pick methods. Collected data was analyzed through descriptive research design on mean, frequencies standard deviation, and percentages whereas qualitative data will be analyzed through content analysis. Regression analysis was also conducted to find out direction and magnitude in the relationship of study variables. Data was presented on tables and bar graphs and narrative interpretations. The tax structure was found to have a positive and significant relationship with tax administration. Adverse tax policy was also found to have a negative and significant relationship with tax administration. Stakeholder knowledge was also found to have a positive and significant relationship with tax administration. The study concluded that tax structure, tax policy, and stakeholders were found as factors that affected turnover tax administration. The study recommended the simplification of the process of filing for turnover taxes and ensuring fairness through ensuring there is equal sacrifice among taxpayers by having progressive taxation. The study also recommended the introduction of fair and reasonable penalties for people who failed to file the return within the provided guidelines because heavy penalties were seen as avenues for evading taxes and discouraged voluntary compliance. The study finally recommended for improvement of stakeholder awareness through seminars, business clinics, and workshops.
Description
Tax Administration
Keywords
Tax Enforcement, Tax policy, Tax structure, Tax Administration, Small Enterprises, Turnover Tax