The effects of liquidity level on stock returns: the Nairobi stock exchange evidence.

Abstract

In 2005, the concept of 'Tax Clinics' was adopted by the Kenya Revenue Authority (KRA), with service oriented approach where taxpayers were educated on various tax matters. During the clinics, taxpayers were given a chance to air their grievances and make suggestions on service improvement. Services such as issuance of PIN Card, Valued Added Tax (VAT) registration, Electronic Tax Register (ETR), Income Tax returns, driving license, Transport Licensing Board (TLB), Public Service Vehicle (PSV) licenses for drivers and conductors, and transfer of logbooks were provided on site at the tax clinics. The broad objective of the study was to determine the effectiveness of taxpayers' education in revenue collection by KRA. The study applied a descriptive research design. The study was conducted in Nairobi region, where the region was sub-divided into four administrative regions namely: Nairobi North, Nairobi East, Nairobi West, and Nairobi South. The sub-regions were applied as the sampling strata for taxpayers. A sample of 120 taxpayers was drawn from the four sub-regions through simple random sampling. Questionnaires were used in ..•.••.. collection of primary data. The data was analysed by application of a mix of both quantitative and qualitative techniques. The findings were presented using tables and charts. The findings established that taxpayer education had enhanced revenue collection by KRA. The findings revealed that taxpayer education had enhanced the following aspects in regard to revenue collection: the public level of understanding on various taxes at v KRA; tax compliance among non- co-operate taxpayers; reduction of tax evasion; and ease of filing tax returns by taxpayers. The study recommends that KRA should strive to improve service delivery options to taxpayers; facilitate participation by all sectors and categories of taxpayers; simplify the tax process; increase the scope of electronic tax services; deliver focused taxpayer education programmes and guidance instructions to taxpayers; formulate measures to increase the participation of taxpayers in the tax; and ensure timely response to the dynamics affecting revenue collection from time to time