A model to addresses system complexities to enhance e-tax system quality that supports tax payment compliance by small and medium enterprises in Uganda

Abstract

Electronic tax services were created to increase awareness and facilitate the submission of tax returns by Small and Medium Enterprises in a simple and timely manner. However, the electronic tax (e-tax) system has several complexities that continue to affect its quality and efficiency in easing the tax payment process and subsequently improving compliance. Thus, this study's primary goal was to create guidelines in a bid to address the complexities in the e-tax system, hence improving e-tax payment compliance by Small and Medium Enterprises (SMEs) in Uganda. To fulfill this goal, the design science approach was applied, which involved examining the e-tax system to identify its contextual and design-related complexities. A combination of qualitative and quantitative data collection techniques was employed to gather information from participants at various study stages. For example, the interview technique was used to collect data from Small and Medium Enterprises in order to understand the difficulties of the e-tax system and how they adversely influence tax payment compliance. Online surveys were also utilized to validate the e-tax system guidelines that were created and to verify the accuracy of the crucial aspects that this study suggested. In addition, quantitative data-gathering methods were necessary for verifying the created e-tax system standards. The amount of acceptability for each suggested determinant factors checked or assessed was measured using Likert scales in order to provide more quantifiable conclusions. From these studies, the researcher proposed guidelines to address the system complexities in a bid to increase e-tax payment compliance. The guidelines were categorized into three and they include user support factors, knowledge base requirements, and technological requirements. According to this study, reducing e-tax system complexity can improve system usability and make it simpler for Small and Medium Enterprises in Uganda and other countries with comparable economic positions to comply with tax policies.