The impact of integrated tax management system on large corporate taxpayers compliance
Tax compliance has become the key administrative approach for both personal and corporate taxation in developed countries and the premise of this study was investigate the impact of Integrated Tax Management system on Large Corporate Taxpayers Compliance. Central to the motive of the introduction of ITMS tax system is an increase in the efficiency' of tax collection for the tax authority; however, of more vital importance is the need to enable this without having an unacceptable detrimental effect on the other key characteristics of a well-designed tax system. This requires the development of public awareness of tax laws, and improvements in voluntary compliance. According to prior studies on this topic one of the main facilitating factors in achieving these aims is the development of the level of tax knowledge among taxpayers. To explore the interaction the system real setting the introduction of ITMS filing tax system on large corporate tax payers is used as a case tax system for this study. Data was collected using structured questionnaire administered to random sample of 33 top corporate tax payers in Kenya. Five stages were used to facilitate the analysis. Stage 1, using the t-test and ANOVA, focuses on the characteristics of taxpayers' knowledge including gender, ethnicity, educational level and income level. Stage 2 attempts to describe the relationship between tax knowledge and tax compliance using multiple regressions. Stage 4 examines taxpayers' compliance determinants more widely than tax knowledge. The results suggested that tax knowledge on the introduction of ITMS has a significant impact on tax compliance even though the level of tax knowledge varies significantly among respondents. The results also indicate that tax compliance is influenced specifically by probability of being audited, penalties, Tax knowledge and the tax system. Results of this study answer such questions as which various taxpayer characteristics of tax knowledge affect compliant behavior. The results of this study can inform policymakers on the extent to which the introduction ITMS is important on corporate taxpayers compliance.