Title:
I-TAX ADOPTION DETERMINANTS AND VALUE ADDED TAX COMPLIANCE AMONG LARGE CORPORATE TAXPAYERS IN KENYA

Authors:
Rose Ndoti Maithya, Dr Farida Abdul, Dr Paul Sang, Kenya

Abstract:

Despite the increasing need to raise the level of revenue collection, developing countries still face the challenges of low tax compliance. This leads to frequent tax reforms aimed at closing short-term revenue gaps. This project sought to investigate the effect of itax adoption determinants on VAT compliance among large corporate taxpayers in Kenya. The study employed a descriptive research design. The study targeted all the 1278 large corporate taxpayers in Kenya registered for VAT. Stratified random sampling technique was used to select 192 respondents for the study. A five-point likert scale structured questionnaire was used to collect primary data. Numerical data that was collected using questionnaires was coded, entered and analyzed with help of a computer Statistical Package for Social Scientists (SPSS) version 24 software Programme. The data collected was analyzed through descriptive and inferential statistics.  Both qualitative and quantitative data analysis technique was used to analyze the data. Thematic analysis techniques were used to analyze qualitative data collected in the open ended questions. From multiple regression, it was inferred that Large taxpayer's perception, Knowledge of tax laws, Level of IT literacy and Costs of Compliance had significant influence on Value Added Tax compliance. This study recommended that KRA management should focus on taxpayer facilitation through a robust system of customer relationships management, efficient complaints resolution and ensuring that more resources are invested in user friendly online tax systems in order to realize long term benefits.