Effect of Technology Acceptance On Tax Compliance Among Small and Medium Enterprises in Nakuru Town
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Date
2022-09-01
Authors
Cherogony, Collins
Journal Title
Journal ISSN
Volume Title
Publisher
KESRA/JKUAT - Unpublished research project
Abstract
Tax revenue is the main source of government income in Kenya. It constitutes over 88% of total government revenue. The government through KRA has to institute measures and systems to collect tax revenue to support government operations. KRA has tried over the years to modernize its tax systems to curb tax leakages and tax evasion by introducing Itax, ICMS among others. This study, therefore aims to establish the effect of technology acceptance on tax compliance among SMEs in Nakuru town. The objective of the study is to determine the effect of ease of use, usefulness and risk of use on tax compliance. The study employed descriptive research design. Target population of 271 respondents was considered for the study. A sample size of 80 respondents was selected using stratified random sampling technique. Primary data was collected using closed ended questionnaires administered to respondents. A pilot study was conducted to test for reliability of data instruments and validity of research instruments. Data was analyzed using descriptive and inferential statistics by use of Statistical Package for Social Science Software (SPSS). Measurement of variables was carried out by use of a 5-point Likert scale. The R2 of the regression model was 0. 619. The findings indicated that usefulness had a positive and significant relationship with tax compliance (β=0.351., p=0.000). ease of use had a positive and significant relationship with tax compliance (β=0.435, p=0.006) and risk of use had a negative and significant relationship with tax compliance (β= -399, p=0.003). The study concluded that there was a significant relationship between technology. The KRA management should also invest in training KRA employees on IT 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.
Description
Tax Administration
Keywords
Tax Compliance, Small and Medium Enterprises