Application of UTAUT model to online tax filing and payment system in Kenya.

Abstract

Adoption of e-tax filing and payment system has become fundamental as many countries adopt Information systems in tax management. E-tax systems improve tax filing and payment efficiency and effectiveness. However, the pace of adoption has been slow especially among taxpaying citizens. This paper reviews and makes use of, current technology adoption models seeking to understand e-tax filing and payment system adoption, in particular, the unified theory of acceptance and use of technology (UTAUT) to the Kenyan taxpayers. The paper also sought test the significance of trust as predictor of intention of taxpayers to use the e-tax system. The paper thus seeks to identify the factors that influence taxpayers‘ acceptance of e-tax filing and payment system. Thus the purpose of this paper was to test the applicability of the UTAUT (Unified Theory of Acceptance and Use of Technology) framework as a tool for assessing Kenyan taxpayer‘s adoption of E-Tax Filing and Payment System as implemented by KRA. A survey instrument to collect quantitative and qualitative data on the model‘s predictors, intention to use e-tax filing and payment system and individual characteristics was used. Data was obtained from 160 taxpayers from Kenyan taxpayers within Nairobi area. Descriptive analysis was used to understand the demographic attributes of the respondents. Factor analysis was used to determine the principal adoption attributes and the explanatory power of the model. Multiple Regression Analysis was used to ascertain the strength and direction relationship of the dependent and independent variables. Results indicate that performance expectancy, effort expectancy and trust influence the intention of that taxpayers to adopt e-tax filing and payment system. Behavioral intention was also found to be a predictor of taxpayer‘s usage. The model explains 73.41% of the variance of the taxpayer‘s behavioural intention to use e-tax filing and payment system. Though age, gender and experience are moderating influences to many UTAUT predictors, none had a significant effect on intention for taxpayers except social influence. These results suggest UTAUT to be a valid framework for studying technology adoption decisions among Kenyan taxpayers. To increase e-tax filing and payment usage, KRA‘s management needs to develop training programs to increase taxpayer‘s degree of ease associated with using e-tax filing and payment system. KRA should also enhance its promotion programs on the benefits of utilizing the e-tax system for filing of returns and payment of taxes as opposed to the manual method. The current research contributes to knowledge in the field of technology acceptance research. It has demonstrated that trust of e-government systems plays a vital role on e-tax filing and payment acceptance. It also demonstrated that the UTAUT model of technology acceptance established in the developed world can be transferred to a developing world although with varying degrees of explanatory power. Future research should adopt a longitudinal approach as this study adopted a cross-sectional design. This will show how the citizen‘s attitude and behavior may change over time represent as opposed to a slice of time. Secondly, future researchers should focus on respondents who have not had a chance to use the e-tax filing and payment system.