The effect of online tax system on tax compliance among small taxpayers in east of Nairobi tax district
The Objective of this study was to establish the effects of online filing system on tax compliance among small taxpayers in East of Nairobi tax District. The objective of the study was answered using three research questions which revolved around online tax registration, online tax filing and online tax remittances, and how each is affected by online system in order to enhance compliance. Review of the past research studies, books, journals and articles were carried out. The study adopted quantitative and descriptive methods as a research designs. Data was collected using structured questionnaire, which covered all the variables of the study from 160 sampled taxpayers based in East of Nairobi tax District. Data obtained was subjected to quantitative methods of data analysis using SPSS (version 20). Results obtained were presented using tables and graphs for ease of understanding and interpretation. In addition, both correlation and regression analyses were done and summaries presented. The findings of the study were that online system do affect tax compliance level among small taxpayers in East of Nairobi as far as registration, filing and payments were concerned, From the regression analysis, it was revealed that holding online tax registration, filing and payment to a constant zero, tax compliance would stand at 3.663.A unit increase in online tax registration would lead to increase in tax compliance among small tax payers in east of Nairobi by factor of 0.051 and a unit increase in tax filing would lead to an increase in tax compliance by factors of 0.161 while a unit increase of online tax payment would result to increase in tax compliance by factor of 0.086.Though the degree of compliance would differ from one sector of the population to another. Mining and mines sector seemed not to have embraced online filing as it recorded the least of the findings. The study recommends that a further study should be done to establish how online system not only affect compliance in mines and minerals sector but also other tax districts of small taxpayers which are considered more/less advanced than East of Nairobi tax District.