Effects of ICT innovations on tax compliance in Uganda: a case of Kakasa business solution at Uganda Revenue Authority

Abstract

This study examined the effect of ICT innovations on tax compliance in Uganda using a case of Kakasa business solution at URA. Specifically, the study assessed the effect of Digital Tracking Solution on tax compliance at URA; examined the effect of Electronic Fiscal Receipting and Invoicing System (EFRIS) on tax compliance at URA; assessed the effect of Electronic Tax Services on tax compliance at URA; and examined the effect of mobile money services on tax compliance at URA. A sample size of 100 respondents was selected from a study population of 2900 using Yamane’s formula. Data was collected by using a Likert scale based questionnaire containing five choices; strongly agree, agree, not sure, disagree and strongly disagree. Data was analyzed using Mean and standard deviation, Pearson correlation and regression analysis with the help of Statistical package for social sciences (SPSS) version 20. The established a significant positive relationship between: Electronic Tax services (ETS) and tax compliance at (r = .463**); Electronic Fiscal Receipting and Invoicing System (EFRIS) and tax compliance at (r = .337**); Mobile Money Services (MMS) at (r = .328**); and Digital Tracking Solution at (r = .314**). The correlation between the dependent and independent variables implies that, a change made in one of the independent variables can change tax compliance. Accordingly, the researcher concluded that Electronic Tax services (ETS), Electronic Fiscal Receipting and Invoicing System (EFRIS), Mobile Money Services and Digital Tracking Solution are significant predicators of tax compliance, where a change made in one of the independent variables can lead to a change in tax compliance at Uganda Revenue Authority. It was concluded that Uganda revenue Authority through the Ugandan government should incorporate more Digital tax services to ease tax registration, assessment and filling of tax returns, ensure that actual tax declarations are made and ensure timely payment of taxes as well as proper tax administration.