| dc.description.abstract | Tax is an important stream of revenue for government’s development projects and
therefore all efforts must be made by governments to ensure that it is accurately and
efficiently collected so as to facilitate the government’s operations. In an effort to
maintain a modernized tax administration system, the Kenya Revenue Authority
developed ITMS, an e-filing system that integrates the processes of registration for tax
purposes, tax preparation, tax filing and consequently tax payment. With the introduction
of ITMS, it has become mandatory for taxpayers to register for tax purposes online using
the system, but online filing of returns is yet to become fully mandatory and several
taxpayers still opt to file their tax returns manually and physically drop them at K.R.A
offices countrywide.
This study sought to examine the effect ITMS on tax compliance by Medium and Small
Taxpayers, focusing on those operating within Nairobi’s Central Business District. The
researcher outlined a detailed literature review and identified the variables for this
research to be Tax compliance, Tax compliance cost, Tax knowledge and education and
perceived fines and penalties. The target population of comprised of 200 taxpayers. A total
sample size of 100 was selected as representative, to be the focus of this study. A
descriptive survey design was used. Random sampling technique was used to create a
sampling frame. Data was collected using self–administered questionnaires and an
interview guide. The collected data was analyzed using Statistical Package for Social
Scientist software and findings presented using tables.
The study findings provide direct evidence that Adoption of ITMS is a contributory factor
in tax compliance. From the study findings there is enough proof to conclude that
Adoption of ITMS is associated with high levels of tax compliance. The study also
provides evidence that tax compliance cost, Tax knowledge and Education, and tax fines
and penalties are contributory factors in tax compliance.
To enhance tax compliance governments should enhance Adoption of E filing systems
such as ITMS, reduce tax compliance costs and enhance tax fines and penalties as well as
tax knowledge and education. | en_US |
