The Effect of Tax Incentives on Exchequer Revenue Mobilization: a Case of the Top 25 Taxpayers in Kenya
Abstract
The objective of the research paper was to determine the effect of tax
incentives on exchequer revenue mobilization with a special focus on the top
twenty five taxpayers in Kenya. Taxation is an important tool of generating
revenue for a country and countries have a right to impose taxation within its
borders.
In order to achieve the above objective, the study set out to investigate the
utilization levels of tax incentives per taxpayer which are cost wise described
as tax expenditure (TE) and determine how tax revenue is affected by tax
incentives.
The results from the study indicated that turnover and taxable income were
independent oftax incentives and neither influenced the other. Tax incentives
were established to account for 0.6% and 5% of the total GDP and actual tax
revenues collected per annum respectively.
The research noted that conclusions drawn from the study were subject to
limitations such as reliability of accounting information and the fact that the
study focused around high net worth firms who are the highest consumers of
tax incentives.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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