Effect of Tax Knowledge on the Alternative Dispute Resolution among Three Star Hotels in Mombasa County, Kenya
Author(s)
Jefwa Wangu William , Eric Mathuva , Christopher Njoroge ,
Download Full PDF Pages: 11-17 | Views: 322 | Downloads: 85 | DOI: 10.5281/zenodo.7074645
Abstract
Any good tax system requires tax dispute resolution (ADR) mechanisms. A dispute can occur where the tax authority and the tax payers have varied in views on tax payer liability. Alternative dispute resolution is a voluntary, interactive and mediated dialogue between a taxpayer and the Commissioner about a tax dispute. Globally it is recommended that at least 80% of tax disputes should be resolved through Alternative Dispute Resolution. Kenya introduced the Alternative Dispute Resolution framework in July 2015. The purpose of this study was to establish the effect of tax knowledge on the Alternative Dispute Resolution, among three star Hotels in Mombasa County, Kenya. The specific objective of this study was to establish effects of fiscal tax knowledge on the alternative dispute resolution among three star Hotels in Mombasa County. The theories that anchored this study included; conflict resolution theory, ability-to-pay tax theory, cost of services theory and the benefit theory of taxation. A descriptive survey study design was be used. Data was therefore obtained from a sample made of forty six (46). The study made use of questionnaires for data collection. The researcher sought a letter of introduction from the university authority, which he used to seek a research permit from the National Council for Science, Technology and Innovation. The Statistical Package for Social Sciences (SPSS) version 25 was used in analyzing the data. Further, the Regression analysis was used to examine the effect of tax knowledge on the Alternative Dispute Resolution among three star hotels in Mombasa County, Kenya. The study concluded fiscal tax knowledge studied had significant effect on the alternative dispute resolution among three star Hotels in Mombasa County, Kenya as indicated by the strong coefficient of correlation and a p-value which is less than 0.05.The overall effect of the analyzed factors was very high as indicated by the coefficient of determination. The study found out that Fiscal tax knowledge has significant impact on tax dispute resolution. It is therefore recommended that hotel owners, KRA from ADR section and tax consultants device ways to be more visible, intervene and participate at all times in cases relating to tax disputes. This study focused on the effect of tax knowledge on the Alternative Dispute Resolution among three star Hotels in Mombasa County, Kenya. This study recommended that a further study be carried out on other factors such as hospitality culture; technology complexity among others that might have effect on the Alternative Dispute Resolution among three star Hotels in Mombasa County, Kenya.
Keywords
Tax Knowledge, Hotel Industry, Dispute Resolution
References
Baru, A. (2019). The impact of tax knowledge on tax compliance. . Journal of Advanced Research in Business and Management Studies, 6(2), 22-30.
Bornman, M., & Ramutumbu, P. (2019). "A conceptual framework of tax knowledge",. Meditari Accountancy Research, Vol. 27 No. 6, pp. 823-839. https://doi.org/10.1108/MEDAR-09-2018-0379.
Bierling, L. (2019). Adopting the best dispute resolution method in the Travel and Hospitality industry using Multi-Attribute Decision Making Models, PM World Journal, Vol. VIII, Issue III (April).
Fauziati, P., Minovia, A. F., Muslim, R. Y., & Nasrah, R. (2017). The impact of tax knowledge on tax compliance case study in kota padang, Indonesia. J. ournal of Advanced Research in Business and Management Studies.
Kanyi, B. G. (2019). Kenya‟s tax dispute resolution system: A dispute system design evaluation.(Thesis, Strathmore University). Retrieved from http://suplus.suplus.plus.
Kirchheiner, C. (2020). Alternative tax dispute resolutions can revolutionize the Tanzania tax regime. Deloitte Touche Tohmatsu Limited.
Alm, J., Kirchler, E. & Muehlibacker, S. (2012). Combining psychology and economics in the analysis of compliance: From enforcement to cooperation. Economic Analysis and Policy, 42(2), 133-151.
Alm, J., McClelland G.H. & Schulze, W.D. (2012). Why do people pay taxes? Journal of Public Economics, 48(1),21‐ 38.
Antonides, G. & Robben, H.S.J. (2015). True positives and false alarms in the detection of tax evasion. Journal ofEconomic Psychology, 16(4), 617-40.
Bird, R.M. (2014). Taxation and development: What have we learned from fifty years of research? Public financeand management, 13(4), 266-288.
Bird, R.M. & Wallace, S. (2013). Is it really so hard to tax the hard-to-tax? The Context and Role of PresumptiveTaxes; prepared for a Conference on the Hard to Tax Sector. Andrew Young School of Policy Studies, 15(16), 45-65.
Edward, K.S. & Ambrose, J. (2017). Impact of online tax filing on tax compliance among SMEs In Kibuezi in sub country in Kenya. International Journal of current Research, 9(1), 45196- 45206.
Engelschalk, M. (2012). Small business taxation in transition countries. Journal of Economic Psychology, 29(2), 210-25.
Helhel, Y. & Ahmed, Y. (2014). Factors affecting tax attitudes and tax compliance: A survey study in Yemen. European Journal of business and management, 6(22), 45-65.
Hite, P.A., Stock, T. & Cloyd, C.B. (2013). Reasons for preparer usage by small business. Hughes, S. (2014). Research and Education.
Jaidi, J., Noordin, R., Ahmad, N. & Kassim, A.W.M. (2013). Individual taxpayers perception towards selfassessment system: A case of Sabah. Journal of the Asian Academy of Applied Business, 2(1), 56-65.
Karlinsky, S., Burton, H. & Blanthorne, C. (2012). Perception of tax evasion as a crime. E- Journal of Tax Research, 2(2), 226-240.
Lignier, P., Evans, C. & Tran-Nam. B (2014). Tangled up in a tape: The continuing tax compliance plight of the small and medium enterprise business section. Journal of Economic Psychology, 29(2), 210-25.
Listokin, Y. & Schizor, D.M. (2012). I like to pay taxes: Tax payer support for government spending and the efficiency of the system.
Loo, E.C. (2016). The influence of the introduction on self-assessment on compliance behaviour of individual taxpayers in Malaysia, PhD thesis, University of Sydney, (2011).
Cite this Article: