Tax administration and tax revenue performance in Kampala City Council Authority (KCCA)

Abstract

The purpose of the research is to evaluate the relationship between tax administration and tax revenue performance in KCCA. The specific objectives are: toexamine the role of tax assessment in tax revenue performance,to investigate the relationship between tax collection and tax revenue performance, and to establish the effect of accounting on tax revenue performance The researcher used a case study design to undertake the study with the help of qualitative and quantitative approaches. The researcher had a sample size of 40 respondents.The researcher obtained primary data obtained through field survey as well as secondary data from reports and other published information collected from the concerned departments or offices for evaluation.The researcher used questionnaires and interview guide for collecting data from the field. The data was about tax administration and tax revenue performance among Small medium enterprises in Rubaga Division which was collected and analyzed using the statistical package for social scientists (SPSS) version to generate the tables for which data analysis and discussion were made. The study revealed that tax administration positivelyand significantly related with tax revenue performance;the results also shows that businesses had no update information for tax purposes, tax officials were corrupt, disorganized system, concealment of information about tax potentials and lack of transparency of tax officials. The study therefore, concludes that since tax administration and tax revenue performance relate positively, tax administrators should focus on tax administration critically, especially; assessment, management and returns which could influence revenue performance. Recommendations included; tax authority should train staff and educate the business community about its different tax rates and mode of payment, for the tax payers the revenue authority should strengthen the appeal process that will help to build confidence among tax payers which will give motivation to the tax process.