TABLE OF CONTENT
TABLE OF CONTENT
LIST OF MEANINGS iv
LIST OF ABBREVIATIONS V
LIST OF TABLES vii
DECLARATION viii
DEDICATION ix
ACKNOWLEDGEMENT X
CERTIFICATION xi
CHAPTER ONE 1
1.1 INTRODUCTION AND THE BACKGROUND OF THE STUDY 1
1.2 STATEMENT OF THE PROBLEM 3
1.3 OBJECTIVE OF THE STUDY 4
1.4 SCOPE OF THE STUDY
1.5 HYPOTHESIS
1.6 SIGNIFICANCE OF THE STUDY 5
1.7 METHODOLOGY
1.8 LITERATURE REVffiW
1.9 CHAPTERIZATION 10
CHAPTER TWO 11
DEFINITION OF TAXATION, TAX EVASION AND ITS EFFECTS AND AN 11
ANALYSIS OF THE METHODS USED iN TAX EVASION 11
2.0 DEFINITION OF TAXATION 11
2.1 TAX EVASION 11
2.3 EFFECTS OF TAX EVASION 12
2.4 AN ANALYSIS OF THE METHODS USED IN TAX EVASION 14
2.4.1 Tax Evasion in Business Firms 14
2.4.2 Tax Evasion in the Customs Department 15
2.4.3 Tax Evasion on Market dues .18
2.3.4 Tax Evasion and the Informal Sector 18
CHAPTER THREE 20
3.0 REVENUE PERFORMANCE (in Billions) AND AN ANALYSIS OF TAX 20
REFORM MEASURES AND RESPONSE OF THE REFORMS IN REDUCING 20
TAX EVASION 20
3.1 Major tax reforms in Uganda 20
3.1.0 Administrative Reforms 21
3.1.1 Value Added Tax (VAT) 22
3.1.2 Income Tax 24
3.1.3 Import Duty 25
3.2 Out come of the Reforms 26
3.3 More Recent reforms 26
3.3.1 Recent Reforms on Custom Department 27
3.3.2 Prosecution Policy 28
3.4 Conclusion 28
CHAPTER FOUR 29
4.0 REASONS AS TO WHY EVASION IS STILL PREVALENT DESPITE 29
REFORM MEASURES IMPLEMENTED 29
4.1 Corruption 29
4.1.0 Indicators Related to the Institutional Context 29
4.1.1 Staff-related Indicators 30
4.1.2 Corruption in U.R.A 31
4.2 Political interferences causing evasion 32
4.3 Inequity of the Tax system and the inconvenience of the payment period and amount
to be paid, a case study of market vendors 33
4.4 Low Levels of Education and Insufficient Tax Education 34
4.5 Perceived Dishonesty of other Taxpayers and Tax revenue ‘Misuse’ by the
Government 35
11
4.6 Conclusion
CHAPTER FIVE .38
GENERAL CONCLUSION OF THE RESEARCH FINDINGS AND 38
RECOMMENDATIONS 38
5.0 Introduction 38
5.1 Challenges 38
5.2 General Recommendations 39
5.3 Administrative Reforms 39
5.4 Reforming the negative attitude towards tax compliance 41
5.5 Controlling 42
5.6 Sanctions and Penalties 42
5.7 Modernizationi Computerjzatjon 44
5.8 Specific reform measures to include 44
5.9 Conclusion 46
BIBLIOGRAPHY 47
CHAPTER ONE Li INTRODUCTION AND THE BACKGROUND OF THE STUDY Ayoki, Obwoni and Ogwapus’ state that tax evasion has been universal and persistent problem throughout history with manifold economic consequences. Two thousand five hundred years ago, Plato was writing about tax evasion, and stated that the Ducal Palace of Venice had a stone with a hole in it, through which people once informed the Republic about tax evaders, Plato stated that ‘Just as it is impossible not to taste the honey or the poison that finds itse~f at the tip of the tongue, so it is impossible for a government servant not to eat up at Least a bit of the king’s revenue”. The basic assumption was that without control, man self-serving by nature, would appropriate more than his share of the king’s revenue2. Ayoki and others further state that tax evasion has been a major problem in most revenue authorities established to manage administration of tax in different countries3. Means of evading tax has continuously been formulated by non- compliant tax payers, bribe payment for example to tax officials is perceived as a means of gaining favors in the form of reduced tax obligations or payments. Widespread corruption, bribery, smuggling, falsification] forging of documents, under-declaring of goods and income tax fraud in the tax system has undermined growth in revenue in Uganda. They further argue that Corruption has persisted despite several anti Corruption measures undertaken by the government, including privatization of some of the Customs operation and use of automated system in customs and the Value Added Tax(V.A.T operations), special services of revenue protection/anti~smugg1jn~ (Para-military) unit, and the better pay of Uganda Revenue Authority (U.R.A) employees4 it is from this background that this
DABAR, I (2022). Tax Evasion: Causes, Effects and A Case for Reform in Uganda.. Afribary. Retrieved from https://afribary.com/works/tax-evasion-causes-effects-and-a-case-for-reform-in-uganda
DABAR, ISMAIL "Tax Evasion: Causes, Effects and A Case for Reform in Uganda." Afribary. Afribary, 09 Aug. 2022, https://afribary.com/works/tax-evasion-causes-effects-and-a-case-for-reform-in-uganda. Accessed 25 Apr. 2024.
DABAR, ISMAIL . "Tax Evasion: Causes, Effects and A Case for Reform in Uganda.". Afribary, Afribary, 09 Aug. 2022. Web. 25 Apr. 2024. < https://afribary.com/works/tax-evasion-causes-effects-and-a-case-for-reform-in-uganda >.
DABAR, ISMAIL . "Tax Evasion: Causes, Effects and A Case for Reform in Uganda." Afribary (2022). Accessed April 25, 2024. https://afribary.com/works/tax-evasion-causes-effects-and-a-case-for-reform-in-uganda