The effects of Electronic Tax filing System on Tax Compliance amongst Small and Medium Enterprises within Kampala Central Business District
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Date
2018-06
Authors
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Publisher
Kampala International University, College of Economics and Management Sciences
Abstract
This study set out to investigate the influence of the electronic tax filing system on tax
compliance and tax collection. Electronic tax filing system is a computerized tax
administration system that is especially designed to handle general tax administration
from registration, assessment, filing returns and processing of claims and refunds. Its
intended purpose was to reduce the cost of the tax payer complying with URA, increase
tax collection, achieve compliance and remove the inefficiencies associated with costs of
movement by tax payers to URA offices to do business and present to tax payers a system
that reduces their cost of compliance. The research therefore specifically sought to
ascertain the extent to which e-tax has achieved its objectives and to establish the ease of
use of the system and the attitude of tax payers towards the system.
The study employed a survey research design and used self administered questionnaires.
A sampling design of 38 respondents was selected which composed of 20 importers, 8
clearing agents and IO URA officials fi'om the IT department.
Findings ji·om the study show that electronic tax filing system has improved tax
compliance as it is easy for tax payers to assess their tax obligation accurately and
enable them file their returns on time. On other hand, the new system has also helped
ease the work of URA staff and to a small extent led to an increase in tax collection in
URA. Findings ji-om the study also show that the attitude of tax payers and that of URA
staff towards the use of e-tax is positive as a considerable number viewed the use of the
system as being good. Findings fi·om the study further indicate that the new system has
increased costs on the tax payer's side. Findings ji·om the study also show that the
current e-tax servers are overwhelmed by the number of users hence they are so slow.
Findings ji-0111 the study further show that the electronic tax filing system has the
potential of increasing tax compliance and revenue collection in URA but a lot has to be
done to avert the obstacles that may not make it possible.
Description
A research report submitted to the Department of
Accounting and Finance College of Economics and
Management for the Award of Bachelor
of Business Administration Finance And
Accounting Degree of Kampala
International University
Keywords
Electronic Tax filing System, Effects, Small and Medium Enterprises, Kampala Central