Factors affecting tax compliance among small scale businesses in Mbarara Uganda

Abstract

This study investigated the factors affecting tax compliances among small scale businesses in Mbarara –Uganda using a sample size of 196 respondents from Mbarara district in Uganda. Data analysis was done at the univariate and bivariate levels of analysis using SPSS software package and the results show that tax awareness and education, tax audits and online filing of returns are the factors affecting tax compliance positively since their respective p-values were less than 0.05 level of significance. This implies that majority of individuals who are aware and educated about taxes; those who do tax audits and those that file their returns online have good tax compliance than others. Knowledge of people about taxes, perception on opportunity for tax evasion had no statistically significant relationship with tax compliance because the p-value was greater than the 5% level of significance.