Effects of Tax Administration on Revenue Performance of Local Government a Case Study of Kampala Capital City Authority

Abstract

The study focused on the effect of tax administration on the revenue performance in Uganda. To explore the influence of tax education on compliance levels of tax payers, to examine the level of effectiveness of revenue collection methods in Uganda and to explore the role of electronic tax (e-tax) in Uganda. The study used a case study design and the study focused on KCCA. The population of the study was 68 respondents and the sample size was 56 though the actual respondents were 48. The study used both qualitative and quantitative research approaches for data collection. The findings determined that tax information is passed through publication of tax payer guides. The field data collected indicated that tax payer education facilitates tax compliance. The findings indicated that 68.8% respondents agreed that that the organization uses media to educate taxpayers about tax obligations. The findings indicated that amount of revenue collected measures revenue performance of the organization. The findings determined that all tax payers have a unique tax payer Identification Number. The findings estimated that organization generates revenue by setting revenue targets. The findings noted that electronic tax system enhances generation of tax intelligence. The findings estimated that E-tax reveals information on tax non-compliance and dodging schemes. Findings still indicated that e-tax expose understatements of tax liabilities. The findings estimated that using e-tax, tax returns are easily filed. The study concludes that tax information is passed through publication of tax payer guides to facilitate tax payer education on tax compliance. The study concludes that amount of revenue collected measures revenue performance of the organization. The study concludes that E-tax reveals information on tax non-compliance and dodging schemes by exposing understatements of tax liabilities. The study recommends that tax information should be passed through publication to tax payer through publication of tax guides to facilitate tax payer education on tax compliance. The study recommends that the organization should uses media to educate taxpayers about tax obligations. The study recommends that all tax payers should have a unique tax payer Identification Number.

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