Washington State’s New Extensive-Time period Treatment Payroll Tax Begins 1-one-2021: What You Need To Know

[Norsworthy Gale]

A Descriptive Survey Design Was Used™

Tax is an important stream of revenue for government’s development projects and therefore all efforts must be made by governments to ensure that it is accurately and efficiently collected so as to facilitate the government’s operations. In an effort to maintain a modernized tax administration system, the Kenya Revenue Authority developed ITMS, an e-filing that integrates the processes of registration for tax purposes, tax preparation, tax filing and consequently tax payment. With the introduction of ITMS, it has become mandatory for taxpayers to register for tax purposes online using the system, but online filing of returns is yet to become fully mandatory and several taxpayers still opt to file their tax returns manually and physically drop them at K.R.A offices countrywide. This study sought to identify the factors that influence the adoption and use of ITMS by Medium and Small Taxpayers, focusing on those operating within Nairobi’s Central Business District. The researcher outlined a detailed literature review and identified the variables for this research to be taxpayers’ perceptions towards e-filing technology, user friendliness of the system, internet access and taxpayers’ technical skills of filing tax returns. A target population of 660 taxpayers was selected and given the large population of registered taxpayers in Nairobi’s C.B.D, a total sample size of 245 was picked as representative, to be the focus of this study. In addition ten tax consultants were also interviewed. A descriptive survey design was used. Stratified sampling technique was used to create a sampling frame ensuring that different and diverse types of entities were included in the survey. Data was collected using self-administered questionnaires and an interview guide. The collected data was analyzed using Statistical Package for Social Scientist software and findings presented using tables. The findings of the study revealed that with regard to taxpayers’ perceptions towards e-filing technology, a majority of the taxpayers consider the development of ITMS a beneficial idea that motivated them to comply with their tax obligations. They however feel that K.R.A has not put enough measures in place so as to encourage more taxpayers to fully adopt the system. In terms of user friendliness of the system as a factor influencing the adoption and consequent use of the system, the findings of the study are that the taxpayers’ use of the system is hampered by many challenges, majorly the lack of instructions on the website that would facilitate and ease the process of e-filing. The taxpayers have daily access to internet by use of computers in their business premises and this directly influences their use of the system as they can file their returns at the comfort of their business premises. The findings further revealed that the taxpayers are aware of their tax obligations and their respective due dates, however, majority are not confident that they can correctly calculate the tax due and payable and so they prefer to do a manual return where they can go to a K.R.A office and have a revenue officer go through the return with them and help them calculate the tax planning services mesa tax due. Government regulations such as the mandatory requirement to have a PIN for particular transactions were found to be most likely to influence the taxpayers to use ITMS. By gaining an understanding of these underlying adoption factors, K.R.A will be able to make changes that will greatly improve and increase taxpayers’ adoption of ITMS, with the end results being increased compliance by taxpayers and allowing the authority to give quality service to taxpayers.