Effect of Excisable Goods Management Systems on Domestic Tax Compliance Among Small and Medium Enterprises in Thika Sub-County
DOI:
https://doi.org/10.70619/vol4iss7pp12-20Keywords:
Small and Medium Enterprises Excisable Goods Management Systems, and Domestic Tax ComplianceAbstract
Purpose: Despite the rapid adoption of e-filing in Kenya, the filing system is still unreliable especially at peak period and on voluntary usage which lead to low level of compliance perceived by taxpayer. The aim of the study was to determine the effect of excisable goods management system on domestic taxes compliance among small and medium enterprises in Thika town, Kenya. The study was anchored on the standard economic theory.
Methodology: The explanatory research design was employed. The target population was 2052 small and medium enterprises in Thika town with sample size of 334 small and medium enterprises. Primary data was collected using structured questionnaires out of the 334 issued questionnaires, 261 filled the questionnaires and submitted them accordingly, resulting in a 78.1% response rate. The data was analyzed using descriptive and inferential statistics.
Results: The study found that excisable goods management system had a positive and significant effect on domestic tax compliance β = 0. 179 and p = 0.004.
Conclusion: The government should invest in further enhancing the Excisable Goods Management System to ensure it is user-friendly and accessible to SMEs
References
De Simone, L., Lester, R., & Markle, K. (2020). Transparency and tax evasion: Evidence from the foreign account tax compliance act (FATCA). Journal of Accounting Research, 58(1), 105-153.
Gitaru, K. (2017). The Effect of Taxpayer Education on Tax Compliance in Kenya. (a case study of SME's in Nairobi Central Business District).
Kiring’a, S. E., Jagongo, A., Kiio, J. M., Njuguna, I. M., Muguongo, G. K., Nganyi, M. S., ... & Qiao, Y. (2019). Impact of online tax filing on tax compliance among small and medium enterprises (MSE) in Kibwezi Sub-County in Kenya. International Journal of Current Research, 9(4), 45196-45206.
Muturi, H. M., & Kiarie, N. (2021). Effects of online tax system on tax compliance among small taxpayers in Meru County, Kenya. International journal of economics, commerce, and management, 3(12), 280-297.
Ndayisenga, E., & Shukla, J. (2016). Effect of electronic tax management system of tax collection in Rwanda: Case study of Rwanda Revenue Authority (RRA). International Journal of Business and Management, 4(5), 38-49.
Wanjohi, M. S. (2018). Taxpayer's attitude and tax compliance behaviour in SMEs. Taxpayer's attitude and tax compliance behaviour in SMEs. Econometrica 46(4), 1251-1271. doi/10.1108/JEFAS-07-2018-0066/full/html
Sekaran, U., & Bougie, R. (2010). Research for Business–A Skill Building Approach.
Stanley, K. (2014). The Adoption of Technology as a Strategic Tool in Enhancing Tax Compliance in Kenya. A Case of Large Taxpayers of Kenya Revenue Authority. Nairobi, Kenya.
Surendran, P. (2012). Technology acceptance model: A survey of literature. International Journal of Business and Social Research, 2(4), 175-178.
Mugenda, O. M., & Mugenda, A. G. (2003). Research Methods, Quantitative and Qualitative Analysis-African Center for Technology Studies. Nairobi: Applied Research and Training Services (ACTS).
KRA (2019). Annual Revenue Performance Fy 2019/2020. Available At Https://Www.Kra.Go.Ke/En/Media-Center/Press-Release/916-Annual-Revenue-Performance-Fy-2019-2020. Accessed On 12th 06 2021.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Moses Waweru, Dr. Bruce Ogaga, Dr Cheboi Yegon
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
