Online Tax System and Tax Compliance by Small and Medium Enterprises: Case of Kitui County in Kenya

IF 2 Q2 BUSINESS, FINANCE International Journal of Accounting Pub Date : 2022-10-16 DOI:10.47941/jacc.1070

Alex Kyalo Mwangangi, F. Memba

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Abstract

Purpose: Technology has significantly impacted the efficiency of conducting business, among them, the digitalization of tax functions, which has led to the creation of operational efficiencies in terms of filing tax returns. The purpose of this research is to evaluate the effect of online tax system on tax compliance in Kitui County's SMEs. Specifically, the study focused on effect of online tax filling and online taxpayer registration on tax compliance in Kitui County. Methodology: This research was hinged on theory of Technological Acceptance Model, Diffusion of Innovation Theory and Theory of planned behavior. A descriptive research design was used in this study. The owners of the 442 small and medium businesses in Kitui County was the study's unit of analysis. A sample population of 206 is determined using the stratified proportionate random sampling technique. Self-administered questionnaires were used to collect primary data. The Statistical Package for Social Sciences was used to examine the data (SPSS Version 25.0). For all quantitative variables, descriptive statistics such as frequencies, percentages, average score, and standard deviation was computed after data cleaning, which includes checking for entry mistakes. The information was presented in tables and graphs. The relationships between the independent and dependent variables were established using multiple regression analysis. Findings: The study concluded that a unit increase in online tax registration leads to 0.807 increase in tax compliance by small and medium enterprises in Kitui County. The study revealed that a unit change in online tax filing leads to 0.731 change in tax compliance by small and medium enterprises in Kitui County. Unique Contribution to Theory, Practice and Policy: The study concludes that the KRA officials in Kitui county should conduct awareness programs among SMEs regarding the importance of online tax registration. The study informs policy as it seeks to help Kenya Revenue Authority in using effective measures to mobilize and motivate small tax payers to register online for turnover tax, value added tax among other taxes in order to increase tax compliance.

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网上税收系统与中小企业税收合规:以肯尼亚基图伊县为例

目的:技术极大地影响了开展业务的效率，其中，税务职能的数字化，导致在申报纳税方面创造了运营效率。本研究的目的是评估网上税收系统对基图伊县中小企业税收合规的影响。具体而言，研究重点是基图伊县网上纳税申报和网上纳税人登记对税收合规的影响。方法:本研究以技术接受模型理论、创新扩散理论和计划行为理论为基础。本研究采用描述性研究设计。基图伊县442家中小企业的所有者是该研究的分析单位。使用分层比例随机抽样技术确定206个样本总体。采用自填问卷收集原始数据。使用社会科学统计软件包(SPSS Version 25.0)对数据进行检验。对于所有定量变量，在数据清理后计算描述性统计数据，如频率、百分比、平均分和标准偏差，其中包括检查输入错误。这些信息以表格和图表的形式呈现。采用多元回归分析建立了自变量与因变量之间的关系。研究发现:基图伊县中小企业网上税务登记每增加一个单位，纳税合规性提高0.807个单位。研究发现，网络纳税申报单位的变化导致基图伊县中小企业纳税合规变化0.731。对理论、实践和政策的独特贡献:研究得出结论，基图伊县的税务局官员应该在中小企业中开展关于网上税务登记重要性的意识项目。该研究旨在帮助肯尼亚税务局采取有效措施，动员和激励小额纳税人在网上登记流转税、增值税和其他税种，以提高税收合规性，从而为政策提供信息。

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来源期刊

International Journal of Accounting BUSINESS, FINANCE-

CiteScore

1.20

自引率

0.00%

发文量

期刊介绍： The aim of The International Journal of Accounting is to advance the academic and professional understanding of accounting theory, policies and practice from the international perspective and viewpoint. The Journal editorial recognizes that international accounting is influenced by a variety of forces, e.g., governmental, political and economic. Thus, the primary criterion for manuscript evaluation is the incremental contribution to international accounting literature and the forces that impact the field. The Journal aims at understanding the present and potential ability of accounting to aid in analyzing and interpreting international economic transactions and the economic consequences of such reporting. These transactions may be within a profit or non-profit environment. The Journal encourages a broad view of the origins and development of accounting with an emphasis on its functions in an increasingly interdependent global economy. The Journal also welcomes manuscripts that help explain current international accounting practices, with related theoretical justifications, and identify criticisms of current policies and practice. Other than occasional commissioned papers or special issues, all the manuscripts published in the Journal are selected by the editors after the normal double-blind refereeing process.