The Effect of social media interactions on tax compliance: a case study of the Kenya Revenue Authority
Date
2021
Authors
Mapesa, Jacqueline
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The Kenya Revenue Authority adopted the use of social media as a communication tool in 2016 in a bid to target the middle class Kenyan and the youths who are active users of social media. However, three years after the adoption, the authority still missed its weighted tax compliance rate by six percent in 2015/2016 and 2016/2017. The purpose of the study is to study how KRA can use social media interactions to increase tax compliance rates. The specific objectives are to; determine the effect of social media interactions on the tax compliance rates, establish the effect of social media interactions on taxpayers' attitude on tax compliance and to determine the extent to which social media interactions send the correct message to the taxpayer on tax compliance. The study is anchored on the excellence the01y and the theory of reasoned action. The study used a case study research design where a population of 24 KRA officers in the social media department and 13 7 taxpayers were sampled. Secondary data and primary data were used in the study. Primary data were collected using questionnaires, where secondary data were obtained from KRA social media pages. Data analysis was done using SPSS. A correlation analysis was done and findings was presented through basic descriptive statistics. The study found that KRA has accounts in all social media platforms. The study found that KRA uses its social media platforms to educate taxpayers on different obligations and; to inform taxpayers; and as an avenue of interaction with taxpayers. The study also found a positive effect of social media interaction on taxpayer attitude; knowledge on tax policies and laws; and a positive impact on tax compliance. The study concluded that KRA's brand presence on social media was impo11ant since it helps provide the correct information on tax and in a timely manner. Interactions and queries handled in a timely manner help improve taxpayer’s perception of the KRA brand and impact taxpayer’s perception on tax compliance positively. The study concluded that social media interaction affects taxpayers ' attitude on taxation and positively affects taxpayers' knowledge on tax laws, which increases tax compliance rates and improves revenue collection.
Description
A Dissertation submitted in partial fulfilment of the requirement for the award of Master of Public Policy Management at Strathmore University