Electronic Taxpayer Education and Tax Compliance of Manufacturing Small and Medium Enterprises in Nairobi City County, Kenya

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Date
2023-12
Authors
Gichohi, Peter King’ori
Muchira, Bancy
Journal Title
Journal ISSN
Volume Title
Publisher
EdinBurg
Abstract
To enlighten taxpayers regarding their tax information, the Kenyan tax authorities have made tax education a top concern. To promote voluntary tax compliance and boost national revenue, this kind of education is essential. Low tax compliance among SMEs limits revenue generation from the government and, consequently, inefficient government expenditure since it makes it harder for the state to amass family earnings, which are vital assets for speculating. This study sought to investigate how electronic taxpayer education affects the compliance with tax laws of manufacturing SMEs in Nairobi City County, Kenya. The study used a descriptive research approach and 641 manufacturing SMEs in Nairobi were the study's targeted audience. Output showed that electronic taxpayer education positively affected tax compliance in a significant manner as it relates to manufacturing SMEs. The conclusion arising from this outcome is that electronic taxpayer education plays an important role in manufacturing SMEs' tax compliance as most of them can access tax information electronically in their comfort zones. Policy makers should increase the utilization of electronic means to educate taxpayers on the need to pay taxes and the consequences of non-compliance to tax laws in Kenya. It is recommended that the Kenya tax authority should enhance the education of taxpayers via electronic means as most of the participants in the manufacturing SMEs are said to easily access electronic media that would enhance their competitive advantage over other firms in Kenya.
Description
Article
Keywords
Electronic Taxpayer Education, Tax Compliance, Manufacturing Small and Medium Enterprises
Citation
Gichohi, P. K. ., & Muchira, B. . (2023). Electronic Taxpayer Education and Tax Compliance of Manufacturing Small and Medium Enterprises in Nairobi City County, Kenya. Journal of Finance and Accounting, 3(4), 43–52. Retrieved from https://edinburgjournals.org/journals/index.php/journal-of-finance-and-accountin/article/view/235