Title: ANALYSIS OF FACTORS AFFECTING TAX COMPLIANCE IN THE REAL ESTATE SECTOR IN KENYA: A CASE OF REAL ESTATES IN ELDORET TOWN
Authors:
Gillian Chepkemoi Mutai and Dr. Gedion Omwono
Abstract:
There are many challenges that hamper the payment and filing of taxes in real estate sector in Kenya. The purpose of this study is to analyze the factors affecting tax compliance in the real estate sector in Kenya: A case of Real Estates in Eldoret town and find out suggestions of the possible remedies to the challenges. The study specifically sought to determine the effect of tax compliance cost, tax knowledge, tax fines, and tax audit on tax compliance in the Real Estate sector. The study
is guided by the theory of planned behavior. The study uses ex-post facto research design. A sample size of 68 will be drawn from the target population of 5018 real estate investors, audit and compliance officers using snowball sampling. Data was collected using structured questionnaire, coded, keyed and analyzed quantitatively using statistical package for social sciences (SPSS). The study findings showed that compliance cost, tax knowledge, tax fines and tax audit had positive
effect on level of tax compliance. The study findings showed that imposing fines, doing tax audit as well as provision of tax knowledge to real estate investors will improve tax compliance. However, high tax compliance costs are a contributing factor that reduces tax compliance among real estate investors. Thus, tax compliance cost should be minimal as possible to encourage payment of income tax. Tax fines laws in place, tax knowledge and tax audit should be implemented to encourage payment of taxes by the real estate investors.
Keywords: analysis of factors, tax compliance, real estate.
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