Effect of Tax Seminars and Campaigns on Tax Compliance Among Micro and Small Enterprises in Nakuru West, Kenya
DOI:
https://doi.org/10.70619/vol5iss6pp1-13Keywords:
Tax seminars, tax campaigns, tax compliance, Micro and Small EnterprisesAbstract
Tax compliance issues have existed as long as taxation itself and remain a significant area of study as long as taxes are in place. Taxes are the main source of revenue for governments, essential for financing development projects. A lack of tax knowledge can have serious consequences, especially in terms of compliance. It is therefore vital to explore whether improving knowledge can lead to better compliance. This research project sought to fill this gap by investigating the effect of tax seminars and campaigns on tax compliance among micro and small enterprises in Nakuru West, Kenya. The study was anchored on three theories that is: the theory of planned behavior, economic deterrence theory, and the ability to pay taxation theory. The study used an explanatory research design. The target population of the study was 54,201, and the sample size was 397. Stratified sampling was employed to divide the population into distinct subgroups or strata, based on relevant characteristics. Once the strata are defined, simple random sampling was used to select the sample from each subgroup. The study used primary data, which was collected by use of a questionnaire. The data analysis methods for this study included descriptive, correlation, and regression analysis. Descriptive statistics, such as percentages, mean, and standard deviation, were calculated to summarize the data for easier interpretation. Correlation analysis was used to evaluate the strength of the relationship between the independent variables and the dependent variable. A linear regression analysis was employed to test the relationship between the independent variables and the dependent variable. The study found that tax seminars and campaigns had a positive and significant effect on tax compliance among micro and small enterprises (MSEs) in Nakuru West, Kenya. The study concluded that taxpayers were more aware of tax obligations after attending tax seminars. The study made recommendations that the Kenya Revenue Authority (KRA), in collaboration with the National Treasury and financial institutions, should intensify taxpayer education initiatives targeting micro and small enterprises. This study recommends that top management in the Kenya Revenue Authority should increase their seminars and workshops and sensitize more on the consequences of tax evasion as well as tax default.
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