Application of E- Tax System and Efficiency in Tax Administration a Case Study of Uganda Revenue Authority

ABSTRACTThe purpose of the study was to establish whether the introduction of the E Tax system in Uganda enhanced the performance of the URA in relation to efficiency in tax administration following several claims of lack of transparency, inadequate education on tax matters and corruption in the assessment of taxes. The study objectives involved evaluating application of the E Tax system in Uganda, evaluating the efficiency of tax administration in Uganda and to establish the relationship between E Tax system and efficiency in tax administration in Uganda. The research was done by employing correlational andcross sectional research designs on a survey population that generally included finance officers Vho handle tax matters in different companies within Kampala district. These officers were arrived at using the purposive sampling method while the simple random sampling technique was used to select the various companies where the officers work. Data was collected from existing literature and by use of questionnaires. The data was measured using The Likert Scale and analyzed using SPSS Data Analysis program. The problem investigated was to do with challenges faced in efficient administration of taxes in Uganda and whether introduction of the E Tax system has brought about any improvements therein. Findings shOed that there is general education about E Tax matters and the system is being used in areas where it is in effect despite its increase in the cost of compliance and low connectivity speed of internet: record keeping by Ugandan firms for purposes of tax assessment is insufficient, the public is not well educated regarding general tax matters and processes in the URA regarding tax exemptions are not very open. Recommendations basing on findings are that the authority takes measures to roll out the E Tax system to the rest of the country: there is need for additional education of the masses about general tax procedures besides E Tax.