Abstract:
Small and medium-sized enterprises have been shown to play a very critical role in the Kenyan economy due to the fact that they provide employment opportunities to millions of Kenyans. The following research thus analyzed how the implementation of the e-tax system has influenced tax
compliance on small and medium-sized enterprises in Embu County. The objective of the study
was answered using three research questions which revolved around online
registration and online tax filing and how each is affected by the online system in order to enhance compliance.
The study seemed to analyze the impact of computer literacy has influenced online
tax filing and how this reflects on tax compliance among small and medium enterprises in Embu. Keny The
study also determined the perception and attitudes of inculcating a tax compliance culture oo
potential future taxpayers at an early age and analyzed on the cost-effectiveness of e-tax system
adoption among SME's. The research also explored several theories like the Fischer
tax
tax
compliance model, the theory of planned behavior and diffusion of innovation theory that
analyzed the compliance of individuals in filing their tax reports. The research also explored the
empirical framework that has been conducted on similar researches. This research study,
therefore, achieved its objectives by using questionnaires, and making observations. Data
obtained were subjected to various quantitative and qualitative data analysis to evaluate the data
from the respondents using SPSS (version 20). The results were presented in easily
understandable formats such as the use of graphs and descriptive analysis tables. Both
quantitative and qualitative results were presented in the most applicable format paving the way
to making conclusions from the results and recommendations. All the respondents voted
excellently (I 00%) e-tax system's involvement in increasing tax compliance by SMEs.
