Income Tax Compliance Behaviour in Kenya: An Application of Structural Equation Modelling
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Date
2018
Authors
Abdul, Farida
Wang’ombe, David
Journal Title
Journal ISSN
Volume Title
Publisher
IISTE
Abstract
The main objective of this study was to use a wide range of selected variables to establish the drivers, as well as
test the validity and adequacy of the Theory of Planned Behaviour (TPB) and Procedural Justice Theory (PJT) in
explaining tax compliance behavior among medium and large corporate taxpayers in Kenya. A Structural
Equation Model was built using survey data on 142 business tax payers. The study examines the influence of
measures of perceived behavioral control, subjective norms, procedural justice measures; tax system attributes
(fairness, complexity, compliance costs as well as international compatibility) on tax compliance behavior, while
controlling for hypothesized influence of firm size, age, sector and legal structure. The results indicate that tax
compliance behavior significantly improves with increased perceived behavioral control, but declines
significantly with increase in tax compliance costs. In addition, tax compliance increases as firm size increases.
Description
A Research Article in the Research Journal of Finance and Accounting
Keywords
Tax Compliance Behaviour, Theory of Planned Behaviour, Income Tax, Corporate Taxpayers, Kenya
Citation
Abdul, F., & McFie, J. B. (2020). Tax complexity and compliance behaviour of large and medium sized business tax payers in Kenya. Review of Integrative Business and Economics Research, 9(2), 90-106.