Tax Avoidance and Evasion as a Factor Influencing ‘Creative Accounting Practice’ Among Companies in Kenya

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Date
2012Author
Kamau, Charles Guandaru
Mutiso, Agnes Ndinda
Ngui, Dorothy Mbithe
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Creative accounting is carried out with an objective of making the company appear to be
financially stronger or weaker depending on the management’s aspirations. This practice is
considered professionally unethical in Kenya even though in some countries it’s permitted by
law. This study singled out Tax avoidance and evasion as one of the major factors influencing
creative accounting practice in Kenya. The researcher randomly collected and analyzed data
from thirty six accountants working for various companies in Kenya. The results of the study
established that tax avoidance and evasion is indeed one of the major factors contributing to
practice of creative accounting among companies in private sector in Kenya