Auditees case-selection model for evaluating taxpayer corporate tax compliance in Kenya

Simple item page
dc.contributor.authorChepkwony, Caroline Chepkurui
dc.date.accessioned2017-11-21T09:49:51Z
dc.date.available2017-11-21T09:49:51Z
dc.date.issued2017
dc.descriptionThesis submitted in partial fulfillment of the requirements for the Degree of Master of Science in Information Technology (MSIT) at Strathmore Universityen_US
dc.description.abstractTax compliance rate in Kenya is estimated to be approximately below 65%. It is important for the government to place measures that ensure improved tax compliance rate comparable with benchmark countries like Sweden, whose tax compliance rate stand at 93%. One measure implemented in Kenya Revenue Authority has been to conduct scrutiny assessments on the taxpayer fraternity. However, success in scrutiny assessments in addressing payment and reporting compliance is largely dependent on the cases selected for audit. A major challenge has been in the possibility of selecting of an honest taxpayer and failure to take up the potential under-reporter, scenarios which are both costly to the tax administration. Whereas the honest taxpayer will feel unfairly selected for scrutiny, under-reporters escape the purview of the authority. This study presents a data mining based approach aimed at addressing the case-selection challenge. A classification model built using historical taxpayer audit data and decision tree algorithm was used to predict the compliance status of taxpayers in a case-selection application prototype. Experimental results using limited taxpayer data for the period year 2014/2015 indicate that the model is effective and fit for case-selection with an accuracy rate of 65% and prediction efficiency of 65% in identifying non-compliant taxpayers. Moreover, with more sources of taxpayer information and increased quantity of data, the accuracy and prediction efficiency is expected to improve significantly. It is recommended that Kenya Revenue Authority adopts this approach to improve the traditional case-selection by auditors‟ for corporate tax as well as other tax obligations such as Individual income tax, VAT, and custom duties administered by the Kenyan government.en_US
dc.identifier.urihttp://hdl.handle.net/11071/5630
dc.language.isoenen_US
dc.publisherStrathmore Universityen_US
dc.subjectEconomic Deterrence Theoryen_US
dc.subjectTax Audit Selectionen_US
dc.subjectRisk-Based Audit Selectionen_US
dc.subjectAuditees Case-Selectionen_US
dc.subjectTax Complianceen_US
dc.titleAuditees case-selection model for evaluating taxpayer corporate tax compliance in Kenyaen_US
dc.typeThesisen_US
Files
Original bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
Auditees case-selection model for evaluating taxpayer corporate tax compliance in Kenya.pdf
Size:
2.54 MB
Format:
Adobe Portable Document Format
Description:
Fulltext thesis
Download
License bundle
Now showing 1 - 1 of 1
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description:
Download
Collections
MSIT Theses and Dissertations (2017)