Tax administration, procedural justice and tax compliance among small and medium enterprises in Kampala district

Abstract

This study was prompted by the degree of non tax compliance among small and processing enterprises in Uganda. The reason for this study was therefore to establish the relationship between tax administration, procedural justice and tax compliance among small business enterprises in Kampala district.

A cross sectional and descriptive survey design was adopted using a representative sample of 170 drawn from a population of 302 basing on Krejcie & Morgan (1970) method of sample selection. Self administered questionnaires were used to collect data. The usable instruments collected represented 78% response rate. Data was analyzed using SPSS (statistical package for social science)

The study findings indicate that tax administration, procedural justice, tax payer attitudes and tax compliance are all significantly positively correlated. Hence putting in place strategies aimed improving these variables would yield high levels of tax compliance among small and medium enterprises. Therefore management and staff of Uganda Revenue Authority should ensure that when registration of tax payers has been completed successfully, a follow up should be made to ensure sensitization, and most importantly work towards achieving a close and good relationship with tax payers so as to improve on tax payer attitudes hence compliance.