Technology Acceptance and Tax Compliance among Hotels in Taita Taveta County, Kenya
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Date
2020
Authors
Nyandieka, Joash Omariba
Nekesa, Dr. Marion
Koske, Dr. Naomi
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/Moi University
Abstract
Tax is the main source of Government revenue accounting for over 80% of the total
revenue. Due to this, the Kenya revenue authority has over time tried to ensure total
tax compliance by coming up with new technological systems moving from integrated
tax management system in 2014 to the current i-tax system for tax registration, filing
of tax returns and payment of tax due by tax payers. Even with the advancement in
technology and making e-filing compulsory, the Kenya Revenue Authority is yet to
achieve full tax compliance. This is manifest in failure by the Kenya Revenue
Authority to meet its targets by an average of 10% between year 2014 to year 2018.
This study was conducted to establish the relationship between technology acceptance
and tax compliance for hotel sector in Taita Taveta County. The specific objectives of
the study were to establish relationship between Perceived ease of use and tax
compliance for hotel sector in Taita Taveta County, to establish relationship between
perceived usefulness and tax compliance for hotel sector in Taita Taveta County and
to establish relationship between perceived risk of use and tax compliance for hotel
sector in Taita Taveta County. The study was guided by the following four theories:
deterrence theory, behavioral theory, theory of technology acceptance and diffusion of
innovations theory. The study targeted hotel managers and adopted explanatory
research design. A pilot study was conducted in Kinango Sub-county of Kwale
County to test the validity and reliability of research instruments that were used for
the study. The study collected primary data from a sample of 71 hotel managers
selected through simple random sampling from a population of 240 hotels. Data was
tested for validity and reliability and analyzed using descriptive and inferential
statistics. The adjusted R2 of the regression model was 0.598. The findings indicated
that perceived usefulness had a positive and significant relationship with tax
compliance (β=1.175, p=0.000). Perceived ease of use had a positive and significant
relationship with tax compliance (β=0.432, p=0.027). Perceived risk of use had a
negative and significant relationship with tax compliance (β= -0.915, p=0.000). The
study concluded that there was a significant relationship between technology
acceptance and tax compliance. Based on the findings, the study recommended that
management of the hotels in Taita Taveta should educate their employees on the
importance and usefulness of using technology. They should create an environment
that allows employees to accept technology such as investing in the best information
technology infrastructure. The management should also invest in training their
employees on information technology skills. This will make it easy for employees to
adopt and use tax information technology systems. Further, the management should
find ways of eliminating possible risks associated with use of technology including
financial risks, privacy risk and performance risk. The government should also put
measures and policies in place that protect users of electronic tax systems such as i-
tax.
Description
Keywords
Tax Compliance, Operation of System, Technology risks, Technology use