| dc.description.abstract | Tax payers' characteristics are unique attributes associated with individual taxpayers and
include: the size of the business, income level of the taxpayer, financial constraints facing
the taxpayer and perception towards ETR. Taxation and tax compliance literature indicate
that firm size, income levels, financial constraints and traders perceptions are important
drivers of compliance. Previous studies focus on the comparative analysis of revenue loss
and non-compliance in developing countries, they employ technology acceptance model
(TAM). Given that the law makes it mandatory for businesses registered for VAT to issue
tax invoices and/or cash sale receipts which must be ETR generated or supported by ETR
receipts, the relationship between firm size and utilization of ETRs, the effect of income
levels on utilization; influence of financial constraints and traders perceptions are not
known. The purpose of this study therefore was to investigate the influence of traders'
characteristics on utilization of ETRs by private firms in Kakamega County. The specific
objectives of the study were to: establish the relationship between firm size and utilization
of electronic tax registers, determine the effect of income levels of taxpayers on
utilization of electronic tax registers, investigate the influence of financial constraints on
utilization of electronic tax registers and analyze the influence of traders' perception on
utilization of electronic tax registers among private firms in Kakamega County. The study
was guided by the theory of reasoned action framework. The study employs correlational
research design. The target population was 610 private firms in Kakamega County. A
sample of 243 finance department employees from 243 private firms was selected using
stratified random sampling technique. Primary data was collected using self administered
questionnaires. A pilot test with 10 employees was used for reliability and validity
testing. The test retest coefficient was obtained to establish reliability. A Cronbach's
alpha of 0.7 was acceptable for reliability. Data was analyzed using descriptive statistics
such as mean, standard deviation, percentages and frequencies and inferential statistics
namely Pearson correlation analysis. The findings of the study were that the relationship
between firm size and utilization ofETRs is positive and significant (r = 0.475, p = 0.008,
n = 220) implying that firm size influences utilization of ETRs positively; effect of
income levels on the utilization ofETRs is positive and significant (r = 0.597, p = 0.000,
n = 220) meaning that income levels of tax payers influence utilization of ETRs
positively; the influence of financial constraints on the utilization of ETRs is negative and
significant (r = -0.728, p = 0.003, n = 220) implying that financial constraints facing tax
payers influence utilization of ETRs negatively and the influence of traders' perception
on the utilization of ETRs is negative and significant (r = -0.555, P = 0.003, n = 220)
meaning that traders' perceptions influence utilization ofETRs negatively. Results will be
presented in the form of tables, charts and graphs. The results may be useful to
academicians, scholars and government for policy formulations. | en_US |
