Tax administration, perceived ease of assessment, perceived usefulness and tax payer compliance: a case of Kampala City Tax Districts.

Abstract

The study focused on examining the relationship between tax administrations, perceived ease of assessments, perceived usefulness, tax payer attitude and tax compliance in Kampala city tax districts. This was done by developing a conceptual framework, which relates tax administration, taxpayer attitude, perceived ease of assessments, perceived usefulness and tax compliance. Specific objectives were developed to establish how the variables of the study are related.

A correlation research design and a cross sectional field survey was used to answer the research questions. Data was gathered using a short self administered questionnaire. Selected taxpayers (firms) in all the four tax districts of Kampala city were sampled purposively. Data was analyzed using SPSS.

The study revealed that tax administration, perceived ease of assessment, perceived usefulness, taxpayer attitude and tax compliance are significantly positively related to tax compliance.

The study concludes that the tax administration, perceived ease of assessment, perceived usefulness, taxpayer attitude greatly influence tax compliance and therefore an improvement in any of the study variables would lead to an improvement in tax compliance.