The Role Of Accountancy Fms And Tax Avoidance In Uganda A Case Of Price Waterhouse Coopers (Pwc) And Uganda Revenue Authority (Ura)

ABSTRACT

The purpose of study was to ascertain the relationship between accountancy firm services m

terms of professional preparation of financial statements, tax advisory services, audit services

and tax avoidance in order to get empirical solutions so as to improve the width and depth of the

tax base. The objectives of the study were as follow; i) To find out the influence of the

profossional preparation of financial statements by Accountancy firms on Tax avoidance .. ii) To

establish the effect of tax advisory services offered by Accountancy firms on tax avoidance, and

iii) To ascertain the relationship between audit services rendered by Accountancy firms and tax

avoidance.

The research study was based on cross-sectional survey research design and was used to analyze

accountancy firms and tax avoidance capitalizing on Uganda Revenue Authority and Price

Waterhouse Coopers. Both quantitative and qualitative approaches were used in order to gain

depth understanding of the study. Descriptive research strategy was also used in collecting data

regarding the subject matter with probability and non probability sampling method in the study.

Primary and secondary data sources were used to gather information to study using instruments

such as questionnaires, interview guide, and survey designs.

It was concluded that URA and PwC responded positively that tax advisory services involves tax

planning that result into tax avoidance which reduces on tax revenue, thus the accountancy firms

arc very aware of the consequences of non compliance. It is also concluded that shareholders

should enforce use of professionals to prepare the financial statements in both organizations thus

reducing the level tax avoidance.

It is recommended that the organization internal auditors should always review the organizations

tax records which will help the organizations to aim at better tax performance through reducing

tax avoidance in the parameters of the country. The tax revenue collections managers should

devise better strategies of collecting taxes from the tax payers. Therefore, this reduces the

practice of tax avoidance among the tax payers. The organizations should improve on the

preparation of financial statements by recruiting employees who are qualified, experience and

capable to perform to the best of the organizations.