Moderating effect of Government Training on Technology Acceptance and Tax Compliance: A Survey of Small Medium Entrepreses in Nairobi CBD, Kenya

Abstract

Tax compliance is viewed as the degree to which a taxpayer obliges to tax rules and regulations. The purpose of the research was to establish the moderating role of government training on the relationship between technology acceptance and tax compliance of SMEs. The specific objectives were; to establish the effect of perceived ease of use on tax compliance, to determine the effect of perceived usefulness on tax compliance, to establish the effect of the social norm on tax compliance, and to determine the moderating effect of government training on the relationship of technology acceptance and tax compliance. The study was guided by the following theories theory: Social Cognitive Theory, Technology Acceptance Model, and Theory of Planned Behavior. The study was carried out in Nairobi CBD. The current study adopted an explanatory research design. The target population was 98,608 licensed SMEs in Nairobi County. Stratified random sampling was used. The sample size was 384. The study used a questionnaire as the primary data collection instrument. The study finding indicated that perceived ease of use, perceived usefulness, social norm has a positive and significant association with tax compliance among small and medium enterprises. The data were analyzed using both descriptive and inferential statistics. The results revealed that there was a positive and significant relationship between perceived ease of use and tax compliance among small and medium enterprises (β =.258, p=0.000<0.05), a positive and significant relationship between perceived usefulness and tax compliance among small and medium enterprises (β =.307, p=0.000<0.05) and a positive and significant relationship between social norm and tax compliance among small and medium enterprises (β =.516, p=0.000<0.05). It was further found that government training moderate Perceived ease (β =.165, p<0.05), Perceived usefulness(β =.29, p<0.05) and Social norm(β =.284, p<0.05) and tax compliance among small and medium enterprises where the R2 before moderation was 51.9% but after moderation the R2 improved to 55.4% implying that government training enhances tax compliance. The study concluded that perceived ease of use, perceived usefulness and social norms positively affects tax compliance among small and medium enterprises. It was concluded that government training moderates the relationship between technology acceptance and tax compliance among small and medium enterprises was accepted. The study recommended that properly structured e-tax training for small and medium enterprise owners and managers is required to enhance ease of use e-tax facilities. Many medium enterprise owners and managers were not aware on how to use e-tax platforms and need to be trained for ease and simplicity of using them. The study thus recommended for tax awareness workshops among small and medium enterprises so as to acknowledge the importance of being tax complaint.