Effects of Communication Channels On Level of VAT Compliance in Kenya: A Survey of Nairobi Central District
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Date
2018
Authors
Olumbe, Lydia
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
The purpose of this study was to determine the effect of communication channels on level of VAT compliance in Kenya. The study covered Nairobi central district. It further, describes the statement of the problem explaining why VAT compliance is an issue in Kenya and communications Channels such as social media, telephone communication and web portal need to be effectively utilized as a means of communication like in other developed countries to mitigate the communication gap. Research objectives and questions were outlined in relation to the research topic. The scope of the study was described in detail and finally a justification for this research was clearly outlined. Chapter two discusses exploration of communication channels and how they affect VAT compliance. The discussions were based on three chosen theories that provided the theoretical background of this study. The existing empirical evidence for each variable and a conceptual framework of the same followed this. Critics of existing literature advanced by different scholars was discussed at length. A summary was drawn from the literature outlined. Chapter three outlined the research methodology that was used in this study of effects of communication channels on level of VAT compliance in Kenya. It provides the following subsections: the research design, target population, sampling frame, sample and sampling technique, data Collection Instruments, data collection, pilot testing, and data collection tools and procedures and data analysis. The researcher presented the findings starting with response rate followed by the background information of the respondents. Findings were presented in both descriptive and inferential statistics. Lastly, chapter five the findings also revealed that there is a positive correlation between social media, telephone communication and web portal with VAT tax compliance. The research established that KRA should embark on revamping communication channels such as Social media, Facebook, Twitter, and You tube. Another channel of communication that needs to be enhanced is telephone communication use of SMS and continuous follow up on taxpayers reminding them on their tax liabilities to improve VAT compliance. The findings also revealed that KRA should invest on a search engine optimized website, which is user centric and simple for it to improve its communication with its loyal taxpayers. This will significantly improve the level VAT tax compliance. The findings indicate that 65.9% of VAT tax compliance is attributed to a combination of the three independent factors investigated in this study (social media, telephone communication and web portal).
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Keywords
Communication Channels, VAT