Tax Complexity and Compliance Behaviour of Large and Medium Sized Business Tax Payers in Kenya
Abstract
This study investigates the role of tax fairness and complexity in tax compliance decisions
among large and medium sized business tax payers in Kenya. The impact of perceived
behavioural control is also examined. The study utilizes the Partial Least Square (PLS)
approach with a sample of 142 businesses. The findings reveal that although fairness
perceptions are multidimensional, only exchange fairness affects tax compliance behaviour of
the business tax payers, however complexity affects the different aspects of fairness. Perceived
behavioural control was found to have a significant negative effect on compliance behaviour.
The findings point to the fact that tax authorities in Kenya and similar tax jurisdictions should
strive to achieve exchange fairness as well as reduce instances where tax payers can have
unchecked control over their business dealings in order to increase tax compliance.