FACTORS AFFECTING TAX COMPLIANCE AMONG RESIDENTIAL PROPERTY OWNERS IN KENYA: A SURVEY OF REAL ESTATE FIRMS IN NAIROBI COUNTY
Abstract
Tax compliance has been a major concern for governments across the world because of its significance as the main source of government revenue. Kenya like any other continue to grapple with problem of tax compliance despite the fact of the numerous tax reforms and policies that have been implemented by both government and the Kenya Revenue Authority. Though quite a number of scholars have studied the subject a lot still remain desired for more investigation. Therefore, this study examined factors that affect tax compliance among residential property owners in Langata sub-county. The study was on four objectives that sought to determine their effect on tax compliance. The objectives included; to evaluate the effect of taxpayer knowledge, compliance cost, tax rates and taxpayer perception on tax compliance among residential property owners in Langata sub-county. The study adopted Economic based theory, Fiscal Exchange and theory of reasoned approach to explain the relationship between the independent and dependent variables. To achieve the aim and objectives of this research and to test the relationship among the variables, this study used a descriptive survey research design. The target population were all residential property owners in Lang’ata sub-county, Nairobi. In order to ensure reliability of the research tool, a pilot study was carried out. Data collected were subjected to scrutiny and analyzed in order to draw inferences and make recommendations. Findings revealed that the independent variables had a statistically positive significant effect on residential income tax compliance; except tax rate and taxpayer perception. The study further recommended for policy formulation, training and more awareness creation to enhance taxpayer compliance. More studies can also be done economic influence on tax compliance.
Key Terms: Taxpayer Knowledge, Compliance Cost, Tax Rates, Taxpayer Perception, Tax Compliance
CITATION: Waweru, P. K., Njeru, A., & Omwenga, J. Q. (2022). Factors affecting tax compliance among residential property owners in Kenya: A survey of real estate firms in Nairobi County. The Strategic Journal of Business & Change Management, 9 (4), 991 – 1003.
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DOI: http://dx.doi.org/10.61426/sjbcm.v10i2.2459
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