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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Kampala International University.College Of Economics and Management
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.
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
Income tax, Assessment, Performance, Business enterprises, Babtechnoid, Electronic Hardware and Softwares