The Effect of Online Tax System on the Performance of Small And Medium Enterprises in Makindye Division. A Case Study of Ggaba Village

ABSTRACT

The purpose of the study was to examine the effects of online tax system on the performance of small and medium enterprises in Makindye Division a case study of small and medium enterprises in Ogaba Village. The study was based on three specific objectives; to determine the effect of online tax registration on the performance of small and medium enterprises in Uganda, to find out the impact of online tax payment on the performance of small and medium enterprises in Uganda and to find out the effect of online tax determination on the performance of small and medium enterprises in Uganda. It was based on a descriptive survey design on the use of qualitative and quantitative approaches that was adopted to examine the effects of online tax system on the performance of small and medium enterprises in Makindye Division Ogaba village. A random sampling system used in the study.Interviews and Questionnaires were used to collect primary and secondary sources of data from 80 out of 100 respondents, using simple random sampling. Data analysis was done using SPSS’s frequencies and percentage means. Finally the report looked at the study results and gave the discussion of each finding.Therefore, here, data analysis, procedures and response rate are focused on. Then the findings conclusions and recommendations are presented. The report also showed the work plan for the whole research, the budget as distributed right from the topic inception up to research presentation, the questionnaire and finally the observation guide. According to the objective one, 50% who strongly agreed and the client’s un willingness to operate in the small scale business experience shortages due to higher taxes imposed on them at the rate of 43% who strongly agreed which indicate that there is a progress to people who around the place who use this services. Though most of the respondents were not well versed with the system. According objective two 67% who strongly agreed and online tax payment helped in the performance of the business with the response of 53% who strongly agreed indicated that minority group on introduction of online tax system, few people benefit from these services and the arrest were not well versed with the system as its time consuming and it needs people who are computer literate. According to objective three, 55% who strongly agreed and online administration has helped in the performance of the business of the minority with the response of 50% who agreed which indicate that there is a progress to people who around the place who use this services. This piece of work has been compiled and is presented in a very simple language easy to understand, a lot ofterminologies have been avoided. I therefore welcome you to have a humble time in reading this work. There are new and knowledge building findings in the work, a lot of inspirations.

TABLE OF CONTENT

DECLARATION

APPROVAL ii

DEDICATION iii

ACKNOWLEDGEMENT iv

LIST OF TABLES v

LIST OF FIGURES vi

LIST OF ACRONYMS vii

ABSTRACT Xii

CHAPTER ONE 1

1.0 Introduction 1

1.1 Historical perspective 1

1.1.2 Theoretical perspective 3

1.1.3 Conceptual background 3

1.1.4 Contextual Background 4

1.2 Statement ofthe problem 5

1.3 Purpose ofthe Study 5

1.4 Specific objectives ofthe Study 5

1.5 Research questions 6

1.6 Scope ofthe study 6

1.6.1 Geographical scope 6

1.6.2 Time scope 6

1.6.3 Content scope 6

1.7 Significance ofthe study 7

1.8 Conceptual Frame Work 8

VIII

1.9 Definition ofkey terms ~

CHAPTER TWO 10

LITERATURE REVIEW 10

2.0 Introduction 10

2.1 Theoretical review 10

2.2 Conceptual review 11

2.3 Related Literature 12

2.3.1 Effect of online tax registration on performance of small and medium enterprises 12

2.3.2 Impact of online tax payment on performance of small and medium enterprises 14

2.3.3 Effect of online tax systems determination on tax performance of small and medium

enterprises 16

2.4 Identifying the research gap 19

CHAPTER THREE 20

METHODOLOGY 20

3.0 Introduction 20

3.1 Research Design 20

3.2 Research population 20

3.3 Sample Size 21

3.4 Sampling procedure 22

3.5 Data Sources 22

3.5.1 Primary data 22

3.5.2 Secondary data 23

3.6 Data collection instruments 23

3.6.1 Questionnaires 24

3.6.2 Response rate 24

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3.7 Quality data control .24

3.8. Measurement ofvariables 24

3.8.1 Validity of instruments 24

3.8.2 Pre-testing 25

3.8.3 Reliability of instruments 25

3.9 Data validity 25

3.10 Data processing and Analysis 25

3.11 Ethical consideration 26

3.12 Limitations ofthe Study 26

CHAPTER FOUR 28

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 28

4.0 Introduction 28

4.1 Response rate 28

4.2 Background characteristics ofthe respondents 29

4.3 Age ofthe respondents 29

4.4 Response on the level of education ofthe respondents 30

4.5 Findings on the gender ofrespondents 31

4.6 Findings on the marital status ofthe respondents 32

4.7 To determine the effect of online tax registration on the performance of small and medium

enterprises in Uganda 33

4.8 To find out the impact of online tax payment on the performance of small and medium

enterprises in Uganda 36

4.9 To find out the effect of online tax determination on the performance of small and medium

enterprises in Uganda 39

4.10 Data analysis and findings 42

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CHAPTER FIVE .43

SUMMARY, CONCLUSION AND RECOMMENDATIONS 43

5.0 Introduction 43

5.1 Summary of findings 43

5.1.1 The effect of online tax registration on the performance of SMEs in Uganda 43

5.1.2 The impact of online tax payment on the performance of small and medium enterprises

in Uganda 43

5.1.3 The effect of online tax determination on the performance of small and medium

enterprises in Uganda 44

5.2 Conclusion 44

5.3 Recommendations 45

5.4 Limitation ofthe study 46

5.5 Areas for Further Research 46

REFERENCES 48

APPENDICES 51

APPENDIX I: QUESTIONNAIRE 51

INTRODUCTORY LETTER 55

ACCEPTANCE LETTER