Innovative Tax Coping Mechanisms in Nairobi County: A Literature Review
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Date
2013
Authors
Karugu, J. G.
Journal Title
Journal ISSN
Volume Title
Publisher
Scholarlink Research Institute Journals
Abstract
Taxation has been identified as a major threat to the growth of small and medium enterprises (SMEs)
not only
in
highly industrialized countries such USA but also in less industrialized c
ountries, Kenya included.
Taxation in
general increases the costs of operation of running small and medium enterprises. To compensate for
the
increased costs of operation, prices on goods are raised thus causing the amounts of sales to go dow
n. The
questio
n that appears to generate surprisingly little debate in Kenya is the scope for legally mitigating t
axes by
individuals and SMEs. Entrepreneurship is about change and since entrepreneurs are innovators, they
should
devise ways and means of coping with the
adverse and threatening effects of taxation in order to survive, grow
and sustain their businesses. How then can Kenyan individuals and business enterprises arrange their
affairs
within the current legal environment so as to minimize their tax burden? The
general objective of this paper is to
examine the innovative tax coping mechanisms by SMEs in Nairobi County. This paper is significant as
it
highlights important ways in which entrepreneurs in Nairobi can cope with taxation within the legal
framework
to e
nhance their business performance. Moreover, the paper analyses significant literature that could be
used as
a point of reference by other scholars conducting research in the same field.
Description
Keywords
SME, Tax avoidance, Coping mechanism, Tax planning, Nairobi
Citation
Journal of Emerging Trends in Economics and Management Sciences (JETE M S) 4 ( 2 ): 226 - 232