Methodological Tax Knowledge and Tax Compliance among Large Taxpayers in Coastal Region, Kenya
Author(s)
Jefwa William Wangu , Dr. Clemence Omanwa , Dr. Paul Kirigia ,
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Abstract
Tax compliance is a key trait for large taxpayers as it helps them avoid penalties, fines, and legal repercussions that could result from failure to adhere to tax rules. By timely payment of taxes, large taxpayers maintain amicable relations with tax authorities, who, in turn, facilitate operations and, as a result, reduces the likelihood of audits or investigations. This study examined the influence of tax knowledge on tax compliance among large taxpayers in coastal region in Kenya. Specifically, the study examined the influence of methodological tax knowledge on tax compliance among large taxpayers in coastal region in Kenya. Planned Behaviour Theory (TPB), Economic Deterrence Theory, and Social Learning Theory served as the foundation for this investigation. The research philosophy used in this study was positivist. In this study, the researcher employed a correlational research strategy, which involved a single correction of the respondents' data. The correlation research design was used in this study. Large taxpayers in Kenya's six coastal counties—Lamu, Kilifi, Kwale, Mombasa, Tana River, and Taita Taveta—were the focus of this study. The responders were KRA account managers and the heads of the tax departments of each manufacturing company. This study employed simple random sampling to select participants from the 53 respondents (47 large taxpayers and 6 KRA County’s Account managers). This study utilized questionnaires comprising both open-ended and closed-ended questions as the main data collection instrument. Respondents were assured of the strict confidentiality of the information collected. For pre- testing purposes, 10% of the respondents were selected from among large taxpayers, and the research questionnaires were pre-tested to identify and eliminate any ambiguities. The findings revealed that tax knowledge significantly influence tax compliance among large taxpayers in coast region in Kenya. General tax knowledge emerged as strong predictor of tax compliance. The study concludes that focusing on methodological tax knowledge dimension is fundamental for ensuring that tax compliance level is enhanced to the highest level possible among large taxpayers in coast region in Kenya.
Keywords
Methodological Tax Knowledge; Tax Compliance
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