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| Tax Structure, Tax Administration and Presumptive Tax Compliance among Selected Small Enterprises in Mbarara City, Uganda
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Akatwijuka Brian, Rutaro Abas
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Abstract:
The purpose of the study was to establish the relationship between tax structure and tax administration and presumption tax compliance in Mbarara City. To do this, a quantitative explanatory research design using cross section survey approach was adopted. A sample of 354 small business enterprises participated in the study. The respondents/unit of inquiry were the owners or the managers of the small business enterprises. Tax structure results indicate that tax structure contributes 14.6% change in presumptive tax compliance. This implies that for a unit change in tax structure, presumptive tax compliance will improve by .383 units. The results show that tax structure is a significant predictor of Tax Compliance among selected small business enterprises in Mbarara City (?= 0.383, p? 0.01). Tax administration results indicate that tax administration contributes 15.9% change in Tax Compliance among selected small business enterprises in Mbarara City. Thus for a unit change in tax administration, Tax Compliance among would improve by .534 units. The results show that tax administration is a significant predictor of Tax Compliance among selected small business enterprises in Mbarara City (?= 0.534, P? 0.01). Finally the variables entered in the regression model explain an overall 30.7% (R Square=.307) of the variations in the Tax Compliance among selected small business enterprises in Mbarara City. This means that 69.3% is explained by other variables not considered in this study. In conclusion, URA should ensure that the tax rate, base and type are clearly communicated and should be favourable to the business owners. Tax assessment should be transparent and assistance should be given to these business people on issues regarding tax payment in order to ensure tax compliance.
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