Communication Channels And Tax Compliance In Kenya By Small Taxpayers In Nairobi City County, Kenya

ABSTRACT 

Taxation has played a crucial role in administering national income and more so in developed countries. Although, both developed and developing countries have intensified measures to enhance tax compliance and minimize reliance on foreign donations and internal and external borrowing, the results of these measures cannot yield the desired results due to high levels of tax avoidance. The main objective of this study was to establish the influence of channels of communication on tax compliance by small taxpayers in Nairobi City County. The specific objectives were to establish the influence of electronic, print media and stakeholders sensitization programme influence on tax compliance by small taxpayers in Nairobi City County. This study employed a descriptive research design. Descriptive research was used to describe the opinions of the respondents regarding the communication channels and tax compliance in Nairobi City County. The study targeted all small taxpayers in the four tax stations/districts in Nairobi, who were approximately 839,560 taxpayers (employees and small-scale traders). The study used probability sampling and stratified random sampling method. Random sampling technique was used later to sample individual taxpayers within the stratum to eliminate research bias. The researcher collected primary data using a semi-structured questionnaire. Secondary data was collected using secondary data collection schedule. Construct validity in primary data and Content validity in secondary data was measured. The generated data from SPSS was analysed using both descriptive and inferential statistics. Descriptive statistics involved the use of frequencies, percentages, mean and standard deviation to summarize the data. Inferential statistics involved the use of regression and correlation to establish the relationship between the independent variables and the dependent variable. The findings indicated that investing in Electronic communication channel is very expensive to implement and sustain but government must make effort since this is one of the factors that increase compliance among small taxpayers in Nairobi County. The study recommended that due to increased tax compliance requirement by government, small taxpayers in Kenya should monitor and respond to printed media communication channel updates to ensure that they acquire and sustain the operations. To improve tax compliance the government should emphasize on stakeholder sensitization programme. The study recommended that current policies be reviewed by assessing their relevance in order to take care of these emerging issues. There is a need for Keya Revenue Authority (KRA) to enhance tax compliance through the use of electronic, printed and stakeholder communication channels