TAX MORALE, BUSINESS FORMALIZATION, AND TAX COMPLIANCE AMONG SMALL BUSINESSES IN MBARARA CITY
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Date
2024-11-06
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Makerere university business school
Abstract
Tax compliance remains a prerequisite of every government, although it remains one of the
major challenges that continue to be encountered worldwide. The purpose of this study was
to examine the relationship between tax morale, business formalization, and tax compliance
among small businesses in Mbarara City. In this study, the objectives were to; examine the
relationship between tax morale and tax compliance; examine the influence between business
formalization and tax compliance; and examine the influence between tax morale and business
formalization among small businesses in Mbarara City. The study was cross-sectional
research design, which applied a quantitative research approach. The sample constituted 291
small business enterprises. A questionnaire was used to obtain data used herein, analyzed using
SPSS v. 25 and interpreted based on correlation and regression analysis. The study found a
positive relationship between morale and tax compliance; and a positive relationship between
business formalization and tax compliance. The study established that both tax morale and
business formalization influence tax compliance. It also found that tax morale is the better
predictor of tax compliance among small business enterprises. This study concludes that tax
morale and business formalization cannot be taken for granted as far as boosting tax
compliance among small businesses is concerned. The research recommends Uganda Revenue
Authority; intensify tax education programs; roll out a TIN registration campaign; continue
enforcing the implementation of the EFRIS; and encourage the government to increase tax
accountability.
Description
Master Of Science in Accounting and Finance of Makerere University
Keywords
Citation
Aijuka,B.(2024)