dc.description.abstract |
Globally taxes account for significant part of governments’ revenue whereby up to 80%
of the total revenue and over 50% of total revenue at least in each country even though
important, under performance still affects many nations. The study aimed at
investigating the influence of information communication technology adoption on tax
compliance among small and medium taxpayers in Nairobi County. The specific
objectives of the study were to establish the influence of ITax system influence on tax
compliance, the influence of online tax filing knowledge on tax compliance and the
influence of internet accessibility on tax compliance small and medium taxpayers in
Nairobi County. The study was anchored on fiscal exchange theory, technology
acceptance model (TAM) theory and the theory of planned behavior (TPB). The study
adopted explanatory research design methods to collect, analyze data and present the
study findings. The population of the study included 450 small and medium taxpayers
where a sample size of 205 participants was drawn. Data was collected using a 5-point
Likert scale with closed ended questions. Descriptive data was presented in tables while
the inferential statistics was analyzed using regression and correlation analysis.
Multiple regression analysis established a positive significant linear relationship
between iTax systems and tax compliance among small and medium taxpayers in
Nairobi County with evidence of p=0.000, ρ<0.05; with beta 0.289. Still, there was a
positive significant linear relationship between online tax filing knowledge and tax
compliance with evidence of p=0.000, ρ<0.05 with beta 0.430, and similarly a positive
significant linear relationship between internet accessibility and tax compliance with
evidence of p=0.049, ρ ≤ 0.05 with beta 0.214. The study revealed that ITax systems,
online tax filing knowledge and internet accessibility had a positive relationship with
tax compliance up to 89.8% or (R= 0.898). In addition, the results revealed that ITax
systems, online tax filing knowledge and internet accessibility caused a variation of
81% or (R2=0.807 and adjusted R2 =0.803) on tax compliance. This implied that the
remaining only 9% of the change was caused by other factors not included in the model.
These other factors could be taxpayers perception on technology adoption, perception
about the government tax expenditure, and other behavioral factors such as fear of the
unknown in the use and adoption of technology. The regression equation showed that
a constant change of 0.404, a unit change in ITax systems causes an increase of 0.275
in tax compliance while a unit change in online tax filing knowledge causes an increase
of 0.377 in tax compliance. A unit change in internet accessibility caused an increase
of 0.178 in tax compliance. The study concluded that iTax systems, online tax filing
knowledge and internet accessibility played a significant role in tax compliance among
small and medium taxpayers in Nairobi, Kenya. The study recommended that more
efforts should be done on improving the interaction of the ITax systems with the
taxpayers to achieve higher tax compliance effectively and efficiently. Further studies
should be done to a larger population in other counties in Kenya for comparative
purposes. |
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