FACTORS AFFECTING VOLUNTARY TAX COMPLIANCE ON RENTAL INCOME: ACASE STUDY OF NAIROBI LANDLORDS
Abstract
The purpose of the study was to examine the factors affecting voluntarily tax compliance in Kenya. Descriptive research design was used in this study. The target population in the study was the Landlords in Nairobi whose tax compliance were under review by Kenya Revenue Authority. A non-probabilistic sampling technique was employed to select forty five (45) respondents as it was necessary for the nature of the subject. This technique allowed the researcher to ensure that each case in the population had an equal chance of being included in the sample. Data collection tool that was used to collect the relevant information was a questionnaire. Data was presented in Tables, bar charts and Pie chart. To ensure effective and efficient data analysis process, the data was coded, sorted and analyzed using regression analysis in the statistical package for social sciences (SPSS). The findings regarding the first research question on what were the attitudes of the Kenya landlords towards taxation, the study found out that though some respondents felt that other factors did not influenced them, majority of the respondents respondent positively that those factors under the attitude and perception influenced their non-compliance. Attitude and perceptions that politicians misuses taxes, peers and financial and family obligation had a strong positive responses. Regarding the second research question on what were various factors that influenced Kenyan landlord taxpayers towards taxation, the study found out that social norms and respondent’s income level were the factors that most influence the non-compliance of tax payment. Finally, regarding the third research question on what measure ought to be done to encourage voluntary tax compliance, the study found out that tax reforms ought to be carried out to encourage tax compliance. The study recommended that the government should sensitize the tax payers on the importance of paying taxes. It was also recommended that the government ought to be transparent on how the revenue collected from taxation was being utilized and KRA needed to carry out tax reforms by factoring in the views of all the taxpayers. The researcher recommends that further study be carried on the other factors that might influence the voluntary tax compliance on rental income. Again further study needed to be done on the same topic but covering a different location other than Nairobi.
Key Words: Kenya Landlords, Taxation, Voluntary Tax Compliance, Rental Income
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i3.293
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