Effect of Taxpayer Morale on Rental Income Tax Compliance Among Property Owners in Ruaraka Sub-County, Kenya
DOI:
https://doi.org/10.70619/vol6iss2pp42-52-770Keywords:
Taxpayer Morale, Rental Income Tax Compliance, Property OwnersAbstract
Taxation is a major revenue source for governments worldwide; therefore, tax authorities must continuously implement measures to ensure maximum revenue collection. Despite KRA's measures, rental income tax compliance has remained low, and therefore, KRA continues to fall short of its annual targets. This study aimed to determine the effect of taxpayer morale on rental income tax compliance among property owners in Ruaraka Sub-County, Kenya. The study was guided by the following theories. Ability to Pay theory and Theory of Planned Behaviour. The study adopted an explanatory research design. The target population was 3281 property owners in Ruaraka Sub-County, and the sample size was 356 respondents. After the collection of responses, 306 respondents fully completed the questionnaires and submitted them. This implies a 86% response rate. The study was conducted using primary data collected through structured questionnaires. The data was analyzed using descriptive and inferential statistics. The study's regression analysis found that Taxpayer morale had a positive and significant effect on rental income tax compliance (β = 0.245, p = 0.000). The government should integrate civic education into school curricula and public campaigns to foster a culture of tax compliance as both a moral duty and a cornerstone of active citizenship. Messaging should emphasize the social contract and the collective benefits derived from tax contributions. Future research could explore the effect of cost obligation on rental income tax compliance.
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