Personal norms, tax morale, and tax compliance in Uganda.
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The study was prompted by a high level of revenue shortfalls of government of Uganda which rises out of non compliance among SMEs. The reason of this study was therefore to establish the relationship between Personal Norms, Tax morale and Tax compliance among SMEs in Uganda. To achieve the above purpose, a cross-sectional research design together with the explanatory research design were used in the survey. The survey population included SMEs 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 SMEs. Data was collected from 342 respondents. It was analysed using SPSS (statistical Package for Social Scientist). The study established that Personal Norms, Tax morale and Tax compliance are significantly correlated. Therefore, putting into place deliberate strategies aimed at improving Personal Norms, and Tax morale would yield high levels of compliance among SMEs. The study also recommended that tax assessment procedures should be improved upon to incorporate normative appeal aspect. URA has to establish an atmosphere that strengthens the existing personal norms through mass mobilization campaigns, tax education such that there is awareness among the taxpayers. If the revenue body becomes fair in all their dealings such as tax assessment and administration, yielding predictable outcomes that is relatively favourable, then tax payers will have more trust in government and will most likely comply in their tax obligations.