Critical Analysis of the Effectiveness of the Ugandan Tax System Towards National Development

TABLE OF CONTENTS

DECLARATION .......................................................................................................... ii

APPROVAL ............................................................................................................... iii

DEDICATION ........................................................................................................... iv

ACKNOWLEDGEMENT ............................................................................................... v

LEGAL INSTRUMENTS / STATUTES ........................................................................... vi

LIST OF CASES ....................................................................................................... vii

LISTOF ABBREVIATIONS ......................................................................................... viii

Table of Contents ..................................................................................................... x

ABSTRACT ............................................................................................................. xiii

CHAPTER ONE: INTRODUCTION ............................................................................... 1

1. 0 Introduction ........................................................................................................ 1

1.1 Background to the study .................................................................................. 1

1.2 Statement of the problem .................................................................................... 6

1.3 Purpose of the study ........................................................................................... 7

1.4 Objectives of the study ........................................................................................ 7

1.5 Research questions ............................................................................................. 8

1.6 Research Hypothesis ........................................................................................... 8

1.6.1 The null hypothesis ....................................................................................... 8

1.6.2 The alternative hypothesis ............................................................................. 8

1. 7 Scope of the study .............................................................................................. 8

1.7.1 Geographical scope ....................................................................................... 8

1. 7.2 lime scope ................................................................................................... 8

1. 7.3 Content scope ............................................................................................... 9

1.8 Significance of the study ...................................................................................... 9

1.9 Methodology ..................................................................................................... 10

1.10 Literature review ............................................................................................. 10

1.11 Chapterisation ................................................................................................. 14

CHAPTER TWO: THE LEGAL AND INSffiUTIONAL FRAMEWORK OF UGANDAN TAX

SYSTEM ................................................................................................................. 15

X

2.0 Introduction ...................................................................................................... 15

2.1 The principles of taxation in the Ugandan tax system .......................................... 15

2.1.1 Equity/Fairness ........................................................................................... 15

2.1.2 Convenience ............................................................................................... 16

2.1.3 Certainty .................................................................................................... 16

2.1.4 Economical ................................................................................................. 16

2.1.5 Simplicity .................................................................................................... 17

2.1.6 Ability to Pay ............................................................................................... 17

2.2 The legal framework of the Ugandan tax system ................................................. 17

2.2.1 The Constitution of the Republic of Uganda, 1995(as Amended) .................... 17

2.2.2 The Uganda Revenue Authority Act, (URA Act) Cap 196 ................................ 18

2.2.3 The Income Tax Act, Cap 340 (as amended) ................................................ 19

2.2.4 The Value Added Tax Act, Cap 349 .............................................................. 22

2.3 The institutional framework of the Ugandan tax system ...................................... 22

2.3.1 The Parliament ........................................................................................... 23

2.3.2 The Role of the Executive ............................................................................ 26

2.3.3 The Uganda Revenue Authority (URA) Board Administration .......................... 28

CHAPTER THREE: EFFECTIVENESS OF THE UGANDAN TAX SYSTEM TOWARDS ......... 30

NATIONAL DEVELOPEMNT ...................................................................................... 30

3.0 Introduction ...................................................................................................... 30

3.1 Positive effects of Ugandan tax system towards national development. ................ 30

3.2 Negative effects of Uganda tax system towards national development. ................ 33

CHAPTER FOUR: EFFECTIVENESS OF THE UGANDAN SYSTEM IN TERMS OF

ENFORCEMENT ....................................................................................................... 36

4.0 Introduction ...................................................................................................... 36

4.1 Structures that ensure enforcement and compliance tax obligation in Uganda ...... 36

4.1.1 Tax Appeals Triburnal .................................................................................. 37

4.1.2 Appeal to High Court ................................................................................... 38

4.1.3 Appeal to Court of Appeal ............................................................................ 40

4.1.4 Appeal to the Supreme Court ....................................................................... 40