The Impact of Corporate Governance on Tax Compliance in Kenya: a Case Study of the Transport Industry

Abstract

This study is on the impact of corporate governance on tax compliance with a focus on the transport sector in Kenya. To narrow down the broader issue of corporate governance, the study undertook to ascertain the experience of corporate governance as far as the transport companies under review are concerned and how the same has shaped their levels of tax compliance. To achieve its objectives this study provides a background into history of corporate governance in Kenya and notes that there have been several cases of corporate failures both internationally and locally. The theoretical framework to be applied in this study are two, namely; the agency theory and stakeholder theory with emphasize being on the duties and responsibilities of the directors especially with regard to their stakeholders. Thereafter, the study will highlight the research methodology to be used with transport companies within the Medium Taxpayers’ Office of the Kenya Revenue Authority being the case study. The study looks at the legal framework as well as at different dynamics in governance structures in transport companies. This will include but is not limited to a look at the relationship between ownership (family owned versus non-family owned) and tax compliance in the transport industry. The study finally concludes with a summary of the findings and offers appropriate recommendations.