Social Norms and Tax Compliance among Small Business Enterprises in Uganda

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Date
2009-08
Authors
Nabaweesi, Jennifer
Journal Title
Journal ISSN
Volume Title
Publisher
Makerere University Business School
Abstract
The study was prompted by the high and alarming rates of non-tax compliance among Small Business Enterprises in Uganda. The reason of this study was therefore to establish the relationship between Social Norms, Taxpayers’ Morale and Tax Compliance among Small Business Enterprises in Uganda. To achieve the above purpose, a cross-sectional research design together with the explanatory research design and analytical research design were used in the survey. The survey population included Small Business Enterprises operating in Kampala district. Purposive and simple random sampling methods were used to select samples used in the study. Self-administered questionnaires were used to collect data from SBEs. Data was collected from 235 respondents. Data was analysed using SPSS (Statistical Package for Social Scientist). The study found that Social Norms, Taxpayers’ Morale and Tax Compliance are significantly correlated. Hence, putting in place deliberate strategies aimed at improving these soft elements would yield high levels of Tax Compliance among Small Business Enterprises. The study also recommended that the tax assessment procedures should be improved to enhance trust of the government, Uganda Revenue Authority should establish harmonious working relationship with all stakeholders, and there should be massive sensitization programmes to increase awareness and educate the public as well as remind them that they are partners as opposed to mere subjects who must pay. Once Uganda Revenue Authority adopts this stance, they are likely to be perceived as more accountable and trustable and the tax paying public will most likely comply in its obligation to pay.
Description
A thesis submitted in partial fulfillment of the requirements for the award of the Master of Science in Accounting and Finance of Makerere University.
Keywords
Social Norms, Tax Compliance, Small Business Enterprises, Uganda
Citation
Nabaweesi, J. (2009). Social norms and tax compliance among small business enterprises in Uganda. Unpublished Master’s dissertation. Makerere University, Kampala, Uganda.