Effect of rental tax amnesty on tax compliance on individual taxpayers in Kenya: A case of Starehe sub-county, Nairobi

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Date

2018

Authors

Mumo, Jacintah Francis

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KESRA/JKUAT - Unpublished research project

Abstract

A tax amnesty is a limited-time offer by the state to a specified group of taxpayers to pay a defined amount, in exchange for forgiveness or pardon of a tax liability relating to a previous tax period. However, the actual experiences of many countries indicate that the immediate impact on revenues is always quite small. This research examined the effect of rental tax amnesty on tax compliance on individual taxpayers Starehe District. Specifically, the paper examined the effect of taxpayer’s tax amnesty knowledge, the influence of enforcement efforts and to establish the effect of perceived opportunity for tax evasion on tax compliance on individual taxpayers. This research adopted descriptive study technique which involved use of primary data. The research targeted a population of about 980 taxpayers and administered the 114 questionnaire to the respondents via a drop & pick method. Data analysis was done through use of multiple linear regression model and the quantitative reports obtained presented using tables. Empirical evidence showed that Tax amnesty information, enforcement measures and perceived opportunity for tax evasion indeed have an impact on Tax Compliance in Starehe Sub-County with significant relationship at 5% significance level. The research concludes that rental tax amnesty is effective if it is followed by strong enforcement measures.

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Keywords

Tax Amnesty

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