The effects of electronic-tax system on the level of compliance at Uganda revenue authority a case of URA, domestic taxes department Lira.

Abstract

The study examined the effect of electronic tax system on tax compliance in Uganda revenue authority domestic tax department Lira district. The objectives of the study were to examine the effects of internet payments system on tax compliance; to examine the effects of electronic billing machine on tax compliance and examine the effects of mobile payment system on tax compliance. The study used a descriptive research design with a population of 60 taxpayers and a sample size of 52 tax payers were drawn from URA staff, district leaders and the business community and data were collected using well designed structured questionnaires. The simple random sampling was used to select respondents especially taxpayers including URA staff, district leaders and the business community since the research is handling a small segment of the tax payers. The findings showed that there was a positive effect of internet payment system at (r= 0. 986; F=1.794; p< 0.01;), electronic billing machine (r=.967; F=719.929; P<0.01) and for trade credit at (r=.983; F=755.929; p< 0.01). Findings revealed that e-tax system has a positive effect on the tax compliance level since its easy for the taxpayers. It was also established that the use of automation of revenue collection system increases the revenue collection hence increase in tax compliance. In conclusion, there is a direct relationship between internet payment system, electronic billing machine, mobile payment system on tax compliance. The study recommends that URA should strongly adopt the use internet payment system to allow tax officers to issue assessments and refunds more quickly and lower corruption by reducing face-to face interactions. URA should strongly emphasize the use mobile tax payment system so that clients can pay tax easily from anywhere by use of their mobile phone. In addition, should be provided to different business enterprises across the country for easily accessible by customers, so that quick service and convenience is maintained hence increasing tax compliance.