Determinants of E-filing system adoption among taxpayers in Gatundu South Sub-County kiambu county, Kenya

Abstract

Due to advancement in technology many countries have shifted to e-Filing Systems to enable taxpayers to file their tax returns online on their own from any location connected to the internet without necessarily visiting the KRA-workplaces for help in filing their tax returns in every calendar year within the month of June. This notwithstanding, many taxpayers are still seeking help from KRA work-places to file their tax returns and in some instances seen them request for the extension of tax filing time in every calendar year within the month of June which always forces KRA to operate for longer hours both in weekdays and weekends in order to support taxpayers in filing their tax returns invoking the issue of e-filing system adoption. It is surprising that a few studies have examined this concern yet e-filing ought to make it convenient for taxpayers to file their tax returns on their own. Consequently, the study invokes the question as to what drives taxpayers to resort to KRA work places, professionals and cybercafé for help in filing their tax returns. The study aimed to examine the determinants of e-filing system adoption among taxpayers in Gatundu South Sub-county, Kiambu County. The specific objectives were to determine the effect of perceived ease of use, perceived usefulness, facilitating conditions and user ability on e-filing system adoption among taxpayers in Gatundu South Sub County. The study was anchored on three theories; Unified Theory of Acceptance & Use of Technology, Technology Acceptance Model and Diffusion of Innovation Theory. The study employed explanatory research design. The target population for the study was 75,974 potential users of the e-filing system (iTax) in Gatundu South Sub-County who were derived from the 2019 census report by the Kenya National Bureau of Statistics. The study used random sampling technique in selecting a sample size (n) of 398 respondents in Gatundu South Sub-County. The study collected primary data through close-ended questionnaire, with a response rate of 84%. The data was analyzed using descriptive and inferential statistics to determine the association between variables, with the measurement of variables based on 5-point Likert Scale. Correlation and regression analysis provided an understanding of the relationship between the study variables. On Regression, These results indicate that the independent variable, perceived ease, perceive usefulness, facilitating conditions and user ability caused a variation of 27.3% (R2=0.273) on e- filing system adoption. The study findings indicated that perceived ease, perceived usefulness, facilitating conditions and user ability had a statistically positive significant effect on e-filing system adoption as per Beta coefficients of perceived ease (β1=0.395, p=0.000<0.05), perceived usefulness (β2=0.227, p=0.000<0.05), Facilitating conditions (β3= 0.264, p=0.000<0.05) and user ability (β4=0.009, p=0.000 <0.05). The study results concluded that perceived ease of use, perceived usefulness, facilitating conditions and user ability affect e-filing system adoption. Based on the findings, the study recommends that KRA should plan a more effective strategy and formulate policies of promoting e-filing usage among individual taxpayers in Kenya. Therefore, future studies can be extended to individual taxpayers in other Counties within the country using other variables not utilized in this study to find out what drives/invoke them to resort to KRA work-places for support in filing their tax returns which always led to extension of working hours both in weekdays and weekends by KRA country wide in every calendar year in the month of June.