EFFECTS OF MODERN COMMUNICATION CHANNELS ON TAXPAYER SERVICE EXPERIENCE IN KENYA

1. EFFECTS OF MODERN COMMUNICATION CHANNELS ON TAXPAYER SERVICE EXPERIENCE IN KENYA FREDRICKE BRYAN OKELLO

2. Introduction In order to achieve maximum efficiency in tax compliance and revenue collection, tax administrators need to continuously improves their services to tax payers and make taxation simpler. There is also need for regular, open and timely communication with taxpayers Implementing effective communication strategies has become very critical in enhancing taxpayer service experience in Kenya. The tax administrators such as KRA should continuously build relationships with the tax payers based on trust with an aim of providing them with all the necessary information related to taxes and obligatory contributions, at the same time informing the tax payers about their rights.

3. Problem Statement Tax compliance is central to effective tax administration and creating an environment in which voluntary compliance is the norm requires considerable on-going effort on the part of tax authorities (Oats & Onu, 2018). For this reason, tax authorities have used different approaches to enforce tax compliance and determining which regulatory enforcement strategy will be the most effective in gaining long term voluntary compliance from taxpayers is a challenge for all tax authorities around the world

4. Research objectives • To find out the effect of using social media in improving taxpayer service experience • To establish the effect of using mobile communication in enhancing taxpayer service experience • To determine the effect of using web portals to improve taxpayer service experience

5. Literature review • In a research study done by (Mascagni, Nell, & Monkam, (2017) it was discovered that messages which simply remind taxpayers of deadlines are highly effective in increasing compliance • A research study by (Mascagni & Santoro, 2018) observed that social media is often being used to boost citizen engagement and tax compliance and one of the best examples is the Kenya Revenue Authority’s (KRA’s) Twitter account, @KRACare. KRA launched a campaign called MkenyaMtrue, with the hashtag #LipaUshuru, which provides information on how to file taxes online • A study by OECD (2010) suggests that every action or message from tax administrations should “resonate” with the behavioural factors and that tax administrations should be alert to public misconceptions or inaccuracies that may impact on behaviour

6. Conceptual Framework

7. Research methodology Research Design The research problem was solved using descriptive study design. Descriptive research study is concerned with describing a population with respect to important variables with the major emphasis being establishing the relationship between the variables (Kothari, 2006)

8. Data collection procedure Primary data was obtained by use of structured questionnaire containing both open-ended and close ended questions. The questionnaires were administered to KRA officers working at the Call centre – Marketing and Communication department

9. Analytical Model • The following regression analysis model was used to determine the effect of modern communication channels on taxpayer service experience. The research analytical model will be depicted by the linear equation given below: 𝑌=𝛽0+𝛽1𝑋1+𝛽2𝑋2+𝛽3𝑋3+𝜋 • Where: 𝑌=𝑇𝑎𝑥𝑝𝑎𝑦𝑒𝑟 𝑆𝑒𝑟𝑣𝑖𝑐𝑒 𝐸𝑥𝑝𝑒𝑟𝑖𝑒𝑛𝑐𝑒 𝛽0−𝛽3=𝑅𝑒𝑔𝑟𝑒𝑠𝑠𝑖𝑜𝑛 𝑐𝑜𝑒𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑡 𝑜𝑓 𝑖𝑛𝑑𝑒𝑝𝑒𝑛𝑑𝑒𝑛𝑡 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑋1=𝑆𝑜𝑐𝑖𝑎𝑙 𝑀𝑒𝑑𝑖𝑎 𝑋2=𝑀𝑜𝑏𝑖𝑙𝑒 𝐶𝑜𝑚𝑚𝑢𝑛𝑖𝑐𝑎𝑡𝑖𝑜𝑛 𝑋3=𝑊𝑒𝑏 𝑃𝑜𝑟𝑡𝑎𝑙𝑠 • π = error term, it takes into account all the possible factors that would possibly influence the dependent variable though not captured in the model

11. Results: Correlation Analysis Matrix The results show that social media had a positive correlation on tax compliance. Mobile communication had a positive correlation on tax compliance. Web portals had a positive correlation on tax compliance. This indicates that social media, mobile communication and web portals had significant impact on tax compliance

12. Coefficient of Determination Coefficient of determination explains the extent to which changes in the dependent variable can be explained by the change in the independent variables or the percentage of variations in the dependent variable (tax compliance) that is explained by all independent variables. The findings indicate that 24.7% of tax compliance is attributed to combination of the three independent factors investigated in this study (social media, mobile communication, and web portals).

14. Conclusions KRA must make proper use of modern channels of communication to enhance taxpayer service experience. These channels are very effective and cost efficient in delivering tax information to taxpayers so as to facilitate voluntary tax compliance

15. Policy Recommendations Social Media and Tax Compliance KRA must put in a place a well-defined and thought out social media strategy so that the most effective service can be delivered to the taxpayers using as few resources as possible while providing a high degree of satisfaction

16. Mobile Communication and Tax Compliance The use of mobile communication devices such as mobile phones to communicate with the taxpayers must be incorporated in the tax laws and policies so as to bring certainty and openness. The functionality of the SMS platform must be expanded so that a large number of taxpayers can be contacted and provided with more personalized messages on a regular basis.

17. The End. Thank You