Browsing by Author "Njonjo, Stephen Kihereko"

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    Voluntary Tax Disclosure Programme and Tax Compliance in The Jua Kali Sector in Nairobi City County, Kenya
    (Daystar University, School of Business and Economics, 2024-10) Njonjo, Stephen Kihereko
    Tax non-compliance in Kenya has been an issue of concern that has always derailed efforts to meet revenue targets in the country. Efforts have been made to address this problem, but still the rate of tax non-compliance in the country remains significantly high. The purpose of this research was to examine Voluntary Tax Disclosure Programme and tax compliance in the Jua Kali sector in Nairobi City County. This study specifically aimed to establish the following: the extent of awareness regarding the voluntary tax disclosure Programme in the Jua Kali Sector; the extent of tax compliance in the Jua Kali sector; and the extent to which the voluntary tax disclosure Programme influences tax compliance in the Jua Kali Sector in Nairobi City County. The Theory of Planned Behavior, Economic Deterrence Theory and Capital Needs theory were adopted in this study. The research design employed was descriptive survey. A total of 300 Jua Kali artisans formed the target population. Simple random sampling procedures was used to choose the sample size of 171 artisans from Nairobi City County. Structured questionnaires were used to gather primary data. A total of 10 artisans from Nairobi County participated in the pilot study to determine the validity and dependability of the study instruments. The 10 artisans used in the pilot study were excluded from the final study. Results of the study were presented using figures and tables. It was also determined that the Voluntary Tax Disclosure Program did not have a significant influence on tax compliance in the Jua Kali sector. The model summary outcomes revealed that the Voluntary Tax Disclosure Program contributed approximately 0.7% changes in tax compliance among the taxpayers in the Jua Kali sector in Nairobi City County. The Analysis of Variance test results revealed that the Voluntary Tax Disclosure Program had no significant relationship with tax compliance in the Jua Kali sector in Nairobi City County, (F (1,163) = 1.088, p > .05). There was no statistically significant relationship between tax compliance with VTDP, penalties and tax payment culture. The study concluded that there was low level of tax compliance in the Jua Kali sector. The study finally concluded that the Voluntary Tax Disclosure Program did not have a significant influence on tax compliance in the Jua Kali sector. The study recommends that: the government and the Kenya Revenue Authority revenue should carry out tax compliance assessment and improve public education among the Jua Kali sector across the country to enhance tax compliance; there is a need for the Kenya Revenue Authority to investigate why tax payers are unwilling to file their past unfiled tax returns despite introduction of programmes such as the Voluntary Tax Disclosure Program; and that the Kenya Revenue Authority should come up with alternative ways of enhancing tax compliance in the Jua Kali sector to ensure that they achieve their annual revenue targets. The government should create awareness and provide incentives through the Voluntary Tax Disclosure Programme to encourage the Jua Kali sector to formalize their operations.