Tax Research in Kenya.

SOLUTIONS TO SMALL TAX PAYER BASE

1)REGISTRATION OF INFORMAL BUSINESS

Most of the kenyans are employed in the informal sector.Since most of these businesses are mot registerd ;a large number of people do not pay taxes.KRA should consider that such businesses are registerd so that they are able to collect taxes from them and this may increase the tax payer base.

2)IMPROVING INTERNAL CONTROLS AND EFFECTIVENESS

By improving internal controls ,KRA is able to know how much tax is collected which helps to minimize fraud and corruption .Critical data should only be accessible to authorized persons and any employee who does not comply by the rules or caught in a corrupt deal should be punished accordingly .This helps to improve effectiveness and accountability in tax collection.

3)ENLARGING THE EXISTING TAX BASE

KRA should enlarge the existing tax base for example in sales tax.Historically sales tax applied to retail purchases of tangible property but not to purchase of retail services .The same jurisdiction could expand to apply to selected personal services such as haircuts or dry cleaning and this could help enlarge the tax payers base

4)KRA SHOULD PARTICIPATE IN CORPORATE SOCIAL RESPONSIBILITY

This helps it to build its image as people are able to know their influence .This helps to build rapport in the society.This helps to interact with the people and as they engage in charitable work they are able to censitize poeople on the importance of payoing taxes.This may help change peoples attitude towards paying taxes and may help increase the tax payer base.

5)INCORPORATION OF TAX EDUCATION IN THE EDUCATION SYSTEM

Tax education should be incorporated in our education system so as to create awereness in young people on the importance of paying taxes.By doing so,it helps created a positive mentality on the usefulness of paying tax.This may help reduce the problem of...