The effect of e-payment on tax compliance among small medium tax payers in Uganda: a case study of Uganda Revenue Authority Tororo Branch

Abstract

This study set to examine E - payment on tax compliance at Uganda Revenue Authority Tororo district Branch office. The study examined the effect of E – payment on tax compliance, established the challenges faced by the tax payers in using E –payment and suggested ways of improving it to enhance tax compliance. A descriptive survey design using a sample of 120 respondents was adopted. Stratified and simple random sampling methods/techniques were used to select the respondents and data was collected using well designed structured questionnaires. Findings revealed that e-filing is easy for taxpayers which increase tax compliance. It also established that tax payers are faced with a challenge of intermittent power supply and Internet outages. It was also established that the use of automation of revenue collection system increases the revenue collection. A Pearson`s correlation test was run to show the relationship between E-payment and tax compliance. Results from the above table revealed that there is a positive relationship between E – payment and tax compliance equal to 0.602 and the p-value = .000 which is less than 0.01. The regression model was significant and thus reliable for making conclusions and recommendations In conclusion, the study findings revealed a positive association between E – payment and tax compliance. This study concludes that there is a direct association between E – payment and tax compliance. The study recommends that URA should adopt the use internet payment system to allow tax officers to issue assessments and refunds more quickly and lower corruption by reducing face-toface interactions. URA should adopt the use mobile tax payment system so that clients can pay tax easily from anywhere by use of their mobile phone. In addition, EBM should be provided to different business enterprises across the country for easy accessible by customers, so that quick service and convenience is maintained hence increasing tax compliance.