The study was conducted under the topic "Income Tax Assessment on small
Business Enterprises", in Busia Municipality. The aim of the study was to
determine the effect of Income tax assessment on performance of small scale
businesses. The research instruments used for data collection are Interview
guide, questionnaires, Observation, sampling and data Analysis.
The data analysis technique used was the chi-square whose formula is
XZObs = '\' (fo- fe)Z
The researcher made the following findings in accordance with the study
Business people need to ensure that they maintain proper books of accounts
that are written comprehensively; general journals, inventory records, fixed
assets register, pay roll records, cash book, Vouchers, receipt books and
invoices. And any amount derived by a person as consideration for accepting a
restriction on the person's capacity to carry on business constitutes the scope
of business income. Sales derived by a person from disposal of trading stock as
well as the value of any asset derived by a person by virtue of a past present or
prospective business relationship includes Business income. When a business
is of a profit seeking motive, then it qualifies to be grouped under business
income. The researcher also found out that the nature of the asset and the
interval between purchase and sale, determines whether such asset qualifies to
be grouped under business income. Allowable and capital deductions are
among the factors to consider when determining taxable income.
From the above findings the researcher made the conclusion that, For
businesses to prosper there is need for businesses owners to maintain proper
records, understanding the scope of business income, be able to know that
there are a number of other business incomes other than the presumptive tax
payers as well as be familiar with key factors which are considered crucial in
determining business taxable income.
From the above conclusion the researcher made the following recommendation:
Small scale business operators should be encouraged to maintain a full set of
books for income tax assessment purpose, to seek advice from tax consultants
in order for their businesses to prosper. The government should also endeavor
to educate small scale business operators on factors which are considered
crucial in determining taxable business income such as allowable deductions,
non allowable deductions, and capital deductions. Small scale tax payers
should be able to know that there are a number of other business incomes that
are liable to taxation apart from business profits. Small scale business
operators should be offered tax holidays to enable them compete favorably with
other foreign businesses that benefit from such tax holidays. Uganda revenue
authority (URA) should intensify sensitization programs focusing on small scale
business operators so that they are able to respond to paying of tax without thinking they are being exploited.
SSA, R (2021). Income Tax Assessment And Performance Of Small Scale Businesses In Busia Municipality. Afribary.com: Retrieved June 18, 2021, from https://afribary.com/works/income-tax-assessment-and-performance-of-small-scale-businesses-in-busia-municipality
Research, SSA. "Income Tax Assessment And Performance Of Small Scale Businesses In Busia Municipality" Afribary.com. Afribary.com, 10 Jun. 2021, https://afribary.com/works/income-tax-assessment-and-performance-of-small-scale-businesses-in-busia-municipality . Accessed 18 Jun. 2021.
Research, SSA. "Income Tax Assessment And Performance Of Small Scale Businesses In Busia Municipality". Afribary.com, Afribary.com, 10 Jun. 2021. Web. 18 Jun. 2021. < https://afribary.com/works/income-tax-assessment-and-performance-of-small-scale-businesses-in-busia-municipality >.
Research, SSA. "Income Tax Assessment And Performance Of Small Scale Businesses In Busia Municipality" Afribary.com (2021). Accessed June 18, 2021. https://afribary.com/works/income-tax-assessment-and-performance-of-small-scale-businesses-in-busia-municipality