| dc.description.abstract | The purpose of the study was to analyze income tax compliance in Uganda at Uganda Revenue Authority. Using the objectives - to determine the factors for income tax compliance - to determine the level of income tax compliance among taxpayers and to suggest ways of facilitating taxpayer compliance. These objectives were reinforced by an economic-based theory of rational behaviors of taxpayers and the non-economic (psychology) theory that digs deep into complicated and complex human psychological behaviors of income tax compliance. The study used cross-sectional survey research designs that involved the use of qualitative and quantitative approaches while analyzing income tax compliance. The study used Central Region URA Tax Office because this taxpayers’ category registered significant contributions to the URA net collections over time. The study used a population of 280 taxpayers who included URA Staff, Hair and Beauty Salons, Restaurants, and Drug Shops, taxpayers. From this, a sample of 162 taxpayers was selected using simple random sampling. Quantitative data were collected using self-administered questionnaires where respondents were asked to give their opinions based on the Likert scale. Qualitative data was collected using an interview guide. Collected data was tested using CVI where all three coefficient values for variables were above the benchmark of 0.7. Data were tested for reliability using Cronbach’s Alpha Reliability Coefficient whose overall value of 0.84 exceeds 0.70 hence items in the instrument were reliable for data collection. Data were analyzed using descriptive statistics, and frequencies, percentage proportions, and mean values were computed. The standard deviation indicated how responses were spread away from the mean value.
From the study, the major factors for income tax compliance in Uganda were: Accounts / Finance staff being knowledgeable and aware of the tax laws and procedures as well as high-income tax rates hindering tax compliance. The major determinants of the level of income tax compliance include: taxpayers would be willing to voluntarily comply with income tax obligations, filing annual income tax returns on time, and accurate income tax declarations. The study suggested that the major ways to enhance taxpayer compliance include: better and timely communication from URA to enhance tax awareness, give accountability for taxes paid to enhance taxpayer’s trust and confidence, and maintain (increase) engagement with taxpayers improves tax knowledge.
The study, therefore, recommended that, though the URA website is up and running, the tax body should update their tax procedures on their website and heighten sensitization of taxpayers regarding the existence of refresher courses and seminars to enhance income tax compliance. URA should fix affordable income tax rates, and continue with providing accountability of tax revenue collected but ensure the tax paid reflects the services delivered to taxpayers hence income tax compliance. And that URA provides dependable, prompt, and accurate service as well as care and pays attention to taxpayers to consolidate and reinforce voluntary income tax compliance. In this technology-driven era, it is recommended that URA should install systems and user-friendly technological interfaces to ease convenience and save the time of meeting income tax obligations from everywhere at any time. | en_US |
