Effect of Social Norms on Corporation Tax Compliance Among Medium and Large Enterprises in Kiambu East, Kenya
DOI:
https://doi.org/10.70619/vol5iss9pp1-10-675Keywords:
Social Norms, Corporation Tax Compliance, Medium and Large EnterprisesAbstract
Governments around the world rely heavily on taxes as their primary source of financing for various public goods and services. To ensure tax compliance, governments often employ a variety of measures such as audits, penalties, interest charges, issuance of agency notices, and taxpayer education, among others. Therefore, the study aimed to establish the effect of Social Norms and corporate tax compliance among Medium and Large Enterprises in Kiambu East, Kenya. The study was guided by the main theory of planned behavior. The study adopted an explanatory research design utilizing structured questionnaires to collect primary data. The target population for the study was 1376 licensed Medium and Large Enterprises in Kiambu East, from which a sample of 309 respondents was selected. The questionnaire study achieved a response rate of 81.9% which was 253 out of the 309 targeted respondents. A pilot study with 31 respondents was conducted to ensure the reliability of the data collection instruments. The study found that social norms had a positive and significant effect on corporate tax compliance. (β = 0.633, p=0.000). Based on the findings, the study recommends that the government implement public awareness campaigns to frame tax compliance as a social responsibility. These campaigns could leverage media platforms and business associations to promote a culture of voluntary compliance. Future research should investigate the impact of digital tax systems, including e-filing platforms and AI-driven compliance tools, on corporate tax compliance.
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Copyright (c) 2025 Beth Wambui Gitau, Paul Kabete, Diane Uyoga
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