Abstract:
Purpose: Despite these reforms tax compliance for the rental income tax has remained low
since its introduction. This study aimed to determine the effect of dispute resolution mechanism
reforms on rental income tax compliance among property owners in Ngong Town, Kenya. The
study was guided by the following theories: Ability to pay Theory and Conflict Resolution
Theory.
Methods: The study adopted an explanatory design and the target population was 2,468 rental
income tax compliance among property owners in Ngong Town, Kenya and sample size of 344
respondents. Out of a total of 344 issued questionnaires, 251 individuals correctly filled their
questionnaires and submitted them resulting in a response rate of 73%. Primary data collection
was collected using structured questionnaires. The data was analyzed using descriptive,
inferential statistics and multiple linear regression analysis.
Results: The study regression analysis found that dispute resolution mechanisms reforms had
a positive and significant effect on rental income tax compliance β = 0.568, p = 0.000,
Conclusion: It is recommended that the government ought to prioritize enhancing dispute
resolution mechanisms. The significant positive effect of these mechanisms on rental income
tax compliance suggests that improving them can lead to better tax compliance rates. Future
research could explore the effects of socioeconomic factors on rental income tax compliance.
