The role of accountancy FMS and tax avoidance in Uganda:
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Date
2015-05
Authors
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Journal ISSN
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Publisher
Kampala International University, School of Economics and management
Abstract
The purpose of study was to ascertain the relationship between accountancy firm services m
terms of professional preparation of financial statements, tax advisory services, audit services
and tax avoidance in order to get empirical solutions so as to improve the width and depth of the
tax base. The objectives of the study were as follow; i) To find out the influence of the
profossional preparation of financial statements by Accountancy firms on Tax avoidance .. ii) To
establish the effect of tax advisory services offered by Accountancy firms on tax avoidance, and
iii) To ascertain the relationship between audit services rendered by Accountancy firms and tax
avoidance.
The research study was based on cross-sectional survey research design and was used to analyze
accountancy firms and tax avoidance capitalizing on Uganda Revenue Authority and Price
Waterhouse Coopers. Both quantitative and qualitative approaches were used in order to gain
depth understanding of the study. Descriptive research strategy was also used in collecting data
regarding the subject matter with probability and non probability sampling method in the study.
Primary and secondary data sources were used to gather information to study using instruments
such as questionnaires, interview guide, and survey designs.
It was concluded that URA and PwC responded positively that tax advisory services involves tax
planning that result into tax avoidance which reduces on tax revenue, thus the accountancy firms
arc very aware of the consequences of non compliance. It is also concluded that shareholders
should enforce use of professionals to prepare the financial statements in both organizations thus
reducing the level tax avoidance.
It is recommended that the organization internal auditors should always review the organizations
tax records which will help the organizations to aim at better tax performance through reducing
tax avoidance in the parameters of the country. The tax revenue collections managers should
devise better strategies of collecting taxes from the tax payers. Therefore, this reduces the
practice of tax avoidance among the tax payers. The organizations should improve on the
preparation of financial statements by recruiting employees who are qualified, experience and
capable to perform to the best of the organizations.
Description
A research report submitted to the faculty of business administration and management in partial requirements for award of bachelors in business administration of Kampala International University
Keywords
Accountancy, FMS and tax, Voidance, Uganda.