Evaluating the contribution of e-tax on voluntary tax payer compliance in Uganda

Abstract

The study was purposely to investigate the contribution of e-Tax on voluntary compliance in Uganda. Since its inauguration, little has been known on how a ‘multi-billion’ project by Uganda Revenue Authority has influenced revenue collection. It has also not been clear whether e-Tax has improved taxpayer compliance or not. It is for this reason that this study was embarked on. The study objectives included establishing the contribution of e-Tax on the size of taxpayer register, number of returns filed by taxpayers and revenue collection by by Uganda Revenue Authority. The research employed a triangulation of designs including case study and Cross sectional research designs. Data was collected by review of existing documents on e-Tax. The analysis was done using descriptive statistics with the help of Statistical Package for Social Sciences (SPSS) data analysis software. The findings indicated that e-Tax has enhanced taxpayer registration hence expanding the register, improved return filing as well as revenue collection. This has all been possible due to the convenient mechanism of registration, filing and payment that came along with the implementation of e-Tax. From the study findings, it was concluded that a number of taxpayers still needed sensitization on the operations of e-Tax system if more revenue is to be realized by URA. The study recommended that massive sensitization of the public should be done by URA on e-Registration and e-Filing as well as establishing a specific desk at all her offices to handle taxpayers with e-filing challenges. In addition, URA should ensure stability of her web portal for convenient filing of online returns. The study further recommended the Mobile tax functionality of e-Tax should be more strengthened and publicized to ease tax payment especially in rural areas where banks are either few, inaccessible or non-existent