| dc.description.abstract | The purpose of this study was to establish if the roll out of the ITax system by the Kenya
Revenue Authority has made it easier and less time consuming for the taxpayers of Nakuru town
Central Business District in making payments and filing their returns. The Objective of this study was
to establish the effects of ITax on tax compliance among taxpayers of Nakuru town CBD. The
background of this study emanated from the need by tax authorities to increase revenue collection, to
increase efficiency in their services and to boost compliance. Countries such as Chile, Malaysia and
Uganda have been highlighted in their adoption of electronic systems of tax administration. The Kenya
Revenue authorities ITax system was however the main focus of this study. The study sought to
address the problem of lack of significant research done on the effect of ITax on tax return compliance
in Nakuru town. The study sought to establish how the ITax system had affected tax compliance of tax
payers in Nakuru town. The objective of the study were answered using five research questions which
revolved around online tax registration, evaluation of tax payers‟ attitude on ITax system, the cost of
tax compliance and effect of training on tax compliance. This study carried great significance for the
taxpayers, academicians and also the tax authority as it provided information that was relevant for
policy formulation and implementation in the area of tax reforms and tax administration. The study
however faced several limitations including accuracy of information given by respondents as the issue
of income is quite sensitive. I however assured the respondents that the research was for academic
purpose only. The study was conducted in Nakuru town mainly because very little research had been
done in Nakuru County on the impact of ITax system since the roll out of an ITax Centre in Nakuru in
2015. Nakuru has a labor force of about 1,128,338 people who basically are also taxpayers. Being so,
research ought to be done to determine how aware they are about ITax system and how helpful it has
been in the tax operations. Review of the past research studies, books, journals and articles was carried
out from research done globally, regionally and locally. Literature review was based on four key
themes which included, demographic determinants of tax compliance, tax systems and structures, social
determinants of tax compliance and online tax systems. Global review of literature was done focusing
on countries like Malaysia, Estonia and Korea. Regional review of literature covered counties such as
Nigeria, Rwanda, South Africa and Croatia. The Kenyan perspective was reviewed focusing on Nairobi
and rift valley. The study was based on the Fischers theory of tax compliance. Ideas were organized in
a conceptual framework showing all variables involved in the study. The study sought to address the
knowledge gap presented which sought to find out why despite increased tax payer registration and
expansion of revenue base by KRA, there still seemed to be failure to meet revenue targets and also
failure to comply to file taxes despite trainings and awareness campaigns done by KRA and imposition
of fines. The study adopted quantitative and descriptive methods as the research designs. Data was
collected using structured questionnaires, which covered all the variables of the study from 50
individual taxpayers based in Nakuru town CBD. Sampling was done by stratified sampling by
selecting individuals that are registered on I-Tax. Piloting was done among the shippers and petroleum
dealers at Kenya Petroleum Company Nakuru. Validation of the study instruments was done through
triangulation of data collection methods and data analysis methods. Reliability was tested through the
test-retest method. The study is of significance to KRA as it will help them find out the public
perception of ITax and also discover areas that will need improvement. The study will also be useful to
taxpayers as it might lead to the address of some of the difficulties that they might be facing with the
tax authority. The study will also add to existing knowledge thereby being of use to future researchers
of the subject. The data obtained was analyzed using descriptive and inferential statistics using SPSS.
Various ethical considerations were observed while doing the study. This includes ensuring total
confidentiality of respondents‟ information and collecting information without coercion | en_US |
