Income tax assessment and performance of small scale business enterprises: a case study of Babtechnoid Electronic Hardware and Softwares in Mukono District.
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Date
2011-09
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University.College Of Economics and Management
Abstract
The study was to evaluate the income tax assessment and performance of small scale business
enterprises of Fabtechnoid Company in Mukono District.
The study was based on three specific objectives; to assess the perfo1mance of small scale
business enterprises of Fabtechnoid Company Mukono District, to find out if tax payers are
aware of all their tax obligations and policies of Fabtechnoid Company Mukono District and to
find out problems affecting tax payers and their business of Fabtechnoid Company Mukono
District.
It was based on a cross sectional survey design basing on the use of qualitative and quantitative
approaches that will be adopted to establish the relationship between taxation and performance
of small scale businesses. A random sampling system used in the study. Interviews and
Questionnaires were used to collect primary and secondary sources of data from 60 out of 72
respondents, using simple random sampling. Data analysis was done using SPSS's frequencies
and percentage means. Finally the repmi looked at the study results and gave the discussion of
each finding. Therefore, here, data analysis, procedures and response rate are focused on.
Then the findings conclusions and recommendations are presented. The report also showed the
work plan for the whole research, the budget as distributed right from the topic inception up to
research presentation, the questionnaire and finally the observation guide.
The study finding further revealed that, taxes mainly affects the performance of SSBs through
lost sales during closure of the business premises by URA, the loss of machinery and equipment
due to delay in remitting the tax and the loss of capital due to the fines imposed by URA onto
SSBs that default on their tax obligation. Overall business performance was fair as most
businesses could duly cover up their expenses, had enough stock, awareness of tax payers was
poor and a number of problems were encountered.
This was clearly shown by the fact that over 60% of all the businesses sampled in Fabteclmoid
Electronic Hardware and Softwares in Mukono District had occupied their current premises, over
70% of businesses surveyed had been closed at one time due to non-payment of taxes.
The URA should reach out and educate the business community about its different tax rates and
mode of payment. The study revealed that the biggest problem with the tax paid is in fact that the
SSBs community does not understand how the tax is aiTived at as well as how it is paid but not
because it is too high.
We obtained the findings and analyze the data by use of tables (hypothetical) and charts which
helped to present data and arrive at conclusion and recommendations. This piece of work has
been compiled and is presented in a very simple language easy to understand, a lot of
terminologies have been avoided. I therefore welcome you to have a humble time in reading this
work. There are new and knowledge building findings in the work, a lot of inspirations.
Description
Research report submitted to the College of Business Management Studies in department of business studies in partial fulfillment of the requirement for the a ward of Bachelors in Business of Kampala International University
Keywords
Income tax, Assessment, Performance, Business enterprises, Babtechnoid, Electronic Hardware and Softwares