Browsing by Author "Emojong, Reuben"

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    Analysis of the Effect of Response of the Tax System on Corporate Tax Revenues in Kenya
    (Kenyatta University, 2025-11) Emojong, Reuben
    Despite the uncertainties and fluctuations associated with the global and national economic environment, corporate tax stands as an integral pillar of Kenya's total tax revenue. However, there are still several challenges and shortcomings that prevent the corporate income tax system from being considered optimal. This study strives to investigate the influence of corporate tax policy on total tax revenues in Kenya. The specific objectives are twofold: first, to analyze the effect of transfer pricing on corporate income tax in Kenya. Secondly, to examine the impact of tax system buoyancy on corporate income tax. The study's scope focuses on understanding the relationship between corporate tax and total tax revenues in Kenya, utilizing data from the Kenya Revenue Authority and other reputable sources. The period for analysis covered the years 1990 to 2022, enabling an examination of historical trends and considering potential future implications of corporate tax changes. The study used The Error Correction Model on the time series data to achieve its objectives. The findings from this research will contribute valuable insights to understanding how corporate tax policies influence overall tax revenues in Kenya. This study examines the impact of transfer pricing regulations and economic indicators on corporate income tax in Kenya, highlighting the complexity and long-term effects of such policies on the tax base. Through empirical analysis, it identifies a stable corporate tax environment. At the same time, it points out significant variability in economic factors such as Gross Domestic Product growth and trade balance. This variability underscores the challenges in maintaining tax revenue amidst economic fluctuations. It emphasizes the need for nuanced policy formulation, considering the intricate relationship between economic growth, tax policy effects, and the importance of historical tax levels on current corporate income tax through the lens of an Error Correction Model, suggesting a multifaceted approach to enhance tax system responsiveness and revenue generation. This research suggests exploring alternative policy measures, such as targeted incentives and tax base broadening, to enhance corporate income tax revenues without hindering economic progress, emphasizing the importance of strategic policy development and efficient tax administration.