Electronic tax administration strategies and revenue collection at Uganda Revenue Authority

Abstract

This research generally aimed at establishing the direct relationship between electronic tax administration strategies and reported revenue there from by a taxing authority, using Uganda Revenue Authority (URA), the autonomous body responsible for taxation and tax administration in Uganda, as a case study. The research was guided by objectives including; Examining the different electronic tax administrative strategies instituted by Uganda Revenue Authority for period 2005 to 2014, Assessing the extent of revenue performance for URA within period 2005 to 2014 and, Examining the relationship between electronic tax administration strategies and increased revenue turnover as reported by Uganda Revenue Authority. The research methodology used was a desk study type involving secondary data analysis; largely targeting information from URA annual reports, then information from relevant stakeholders including among others; audit firms, tax advisors, organized economic groups like KACITA, written documentaries, tabloids and the researcher’s personal experience in the taxation field. From the research study, it was evident that as URA adopted and successfully operationalized a number of electronic tax administrative strategies that contributed to increased revenue performance over the span of successful years. The deeper study however established that these electronic approaches were aimed at simplifying URA’s internal tax administrative procedures on how to collect more taxes from the tax bases. It was seen that the electronic strategies never geared at enabling taxpayers improve their compliance levels, tax awareness, attitudes and general knowledge about taxation. The extended URA sensitization to the taxpayers was only focused on how they (taxpayers) could pay their tax obligations at ease. Among other recommendations, it is advisable that electronic applications be extended to taxpayer business premises with an aim of simplifying the way of doing their businesses for quicker interface with the taxing authority. The obvious results there from may include; increase in tax awareness, improved attitude on taxpayers’ obligations to pay taxes thereby improving tax bases. Revenue collection at the ultimate side of URA just increases automatically.