Taxpayer Education and Tax Compliance by Water Vending Businesses in Hargeisa City, Somaliland
| dc.contributor.author | Hamse, Ibrahim Jirde | |
| dc.date.accessioned | 2025-03-05T09:06:02Z | |
| dc.date.available | 2025-03-05T09:06:02Z | |
| dc.date.issued | 2024-11 | |
| dc.description | A Research Project Submitted to the School of Business, Economics and Tourism in Partial Fulfilment of the Requirements for the Award of Master of Business Administration (Accounting Option) of Kenyatta University, November 2024. Supervisor Daniel Makori | |
| dc.description.abstract | The Inland Revenue Department, operating under the Somaliland Ministry of Finance (MOF), is tasked with overseeing the assessment, collection, management, and reporting of tax revenues in Somaliland. Among its responsibilities is evaluating the impact of taxpayer education on compliance with tax regulations within the country. Past studies have shown that taxpayers’ education has a positive influence in tax compliance. This research, therefore, aims to explore the impact of taxpayer education on tax compliance among water vending businesses in Hargeisa, Somaliland. The study's specific objectives are: to examine the effect of teaching basic tax principles; to assess the impact of communicating tax-related information for awareness; and to investigate how assistance with tax filing influences compliance within the water vending sector in Hargeisa. The study seeks to determine how the social and demographic characteristics of taxpayers moderate the relationship between taxpayer education and tax compliance among water vending businesses in Hargeisa, Somaliland. The study is underpinned by several theories: the Economic Deterrence Tax Theory, the Theory of Planned Behaviour, the Fiscal Exchange Theory, and the Slippery Slope Framework. A descriptive research design will guide the study's data collection and analysis methods. The target population includes 326 registered water vending businesses in Hargeisa City. The sample size was determined using the Yamane (1967) formula. Stratified sampling was employed to divide the population into two groups: retail water kiosk operators and bulk water wholesalers. From each group, simple random sampling was used to select respondents. Data collection was conducted using structured questionnaires distributed to 179 water vending business owners. Diagnostic tests performed included normality, multicollinearity, and model specification tests. The data was analyzed using a multiple regression model, and the findings are presented using tables, charts, and figures, showcasing both descriptive and inferential statistics. Ethical consideration was also observed. The study concludes that educational, communicative, and practical assistance strategies significantly enhance tax compliance among water vending businesses in Hargeisa City, Somaliland, emphasizing the importance of these strategies in improving tax administration efficiency. Teaching tax essentials significantly enhances tax compliance, highlighting the pivotal role of foundational tax knowledge in fostering understanding and adherence to tax obligations. Effective communication strategies significantly enhance awareness and compliance levels, underscoring the role of clear, accessible communication in fostering positive perceptions of the tax system and encouraging timely compliance behaviors. Providing practical assistance with tax filing significantly improves tax compliance, suggesting that initiatives aimed at simplifying tax procedures and enhancing digital accessibility can mitigate compliance barriers. Socio-demographic factors influence the relationship between tax education and compliance, highlighting the need for tailored education programs to address specific knowledge gaps and operational challenges unique to diverse business demographics. To improve tax compliance among water vending businesses in Hargeisa City, Somaliland, several actions are being proposed. Educators are enhancing tax education by targeting different groups with tailored strategies and clear explanations. Effective communication, including promotional activities, is being used to raise awareness. Practical assistance and digital tools are being provided to simplify tax filing, while socio-demographic factors are being considered to design targeted outreach programs. Further research is being recommended to assess the long-term impact of these strategies and to explore the role of digital tools and communication methods in enhancing compliance. | |
| dc.description.sponsorship | Kenyatta University | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/29700 | |
| dc.language.iso | en | |
| dc.publisher | Kenyatta University | |
| dc.title | Taxpayer Education and Tax Compliance by Water Vending Businesses in Hargeisa City, Somaliland | |
| dc.type | Thesis |