Impact of Income Tax on the Performance of Small Scale Business Enterprises: A Case of Kabalagala, Makin Dye Division

TABLE OF CONTENTS

DECLARATION

APPROVAL ii

DEDICATION Ii

ACKNOWLEDGMENTS iv

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF FFIGURES viii

ABSTRACT x

ChAPTER ONE..aa..,,.,.,.,.,.,.,.,......,.......,.,.....,....,.,,..an,.....,.n.,.......,.,.,u....... 1

I 1

1~0 Introduction . .., .... 1

1.1 Background of the study .... ...... 1

1.1.1 Historical background ...... ..... ......... 1

1.1.2 Theoretical perceptive .~....... .... 3

1.1.3 Conceptual perceptive . ...... ...... .............. ., ..., .. 3

1.1.4 Contextual perceptive....,. ...... ......,...,, .4

1.2 Statement of the problem..... .. . . . .. 4

1.3 Purpose of the Study...... ... .. ........ . 6

1.4 Objectives of the study .6

1.5 Research questions .........~. .6

1.6 Research Hypothesis . .... 6

1.7 Scope of the study 7

1.7.1 Content Scope 7

1.7.2 Geographical scope . 7

1.7.3 Time scope 7

1.8 Significance of the study .. .. 7

1.9 Definition of key terms .. . ....... .... . . 8

V

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LI1ER~AT1JRE REVIE’iI’~I........,........,.,. nug,n,e,.,.,,,,..un,gu,nus,, ~1~S~ 10

2.0 Introduction . 10

2.1 Concepts, opinion and ideas.10

2.2 Theoretical review 16

2.3 Conceptual Frame Work 17

2.4 Related literatures 18

2.4.1 Effects of tax policy on profitability 18

2.4.2 Effects of tax assessment on sales revenue 19

2.4.3 Level of the performance of small scale business enterprises 21

2.4.4 Effects of Income tax on the performance of small scale business 23

2.4.5 Relationship between income tax and the performance of small scale

business.. 26

2.4.6 Relationship between tax policy and financial performance . . 27

2.4.7 Relationship between tax assessment and financial performance 29

2.5 Gap of the study. . 30

CIIIAP1ER THREE ~32

M E1~HODOLOG’Y ~32

3.0 Introduction . . 32

3.1 Research design 32

3.2 Population 33

3.3 Sample Size ..... ,, 33

3.4 Research Instruments 34

3.6 Validity and Reliability of the Instrument . 34

3.7 Data collection Procedures . . . 36

3.7.1 During data gathering ., 37

3.7.2 After Data Gathering 37

3.8 Data Analysis . 37

3.9 Ethical Considerations . .. . . . ... . . . . . . . . . . . . 38

VI

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DATA PRESENTATION, ANALYSIS AND INTERPRETATION ~39

4.0 Introduction 39

4.1 Personal Data 39

4.1.1 Gender of respondents 39

4.2 Analysis based on the objectives of the study 45

4.2.1 Level of performance of small scale business enterprises in Kabalagala

suburb 45

4.2.2. To find out if income tax affects the performance of small scale business

in Kabalagala suburb 48

4.2.3 Relationship between income tax and the performance of small scale

business enterprises in Kabalagala suburb 50

CHAPTER FIVE o no to no toot tOO tOCCata 0000000000000000000000000000CC 0000000000000000000000000000000000 53

DISCUSSIONS, CONCLUSIONS AND 00000000000053

5~0 Introduction COO ,00O~ 53

5~1 Summary of major findings.,.0,.000.000000 ~53

5~1.2 Income tax affects the performance of small scale business in Kabalagala

suburb ~ ~ 00000054

5~1~5 Tax assessment~~ 56

5.2 Conclusions ~ 0 000 57

5~3 Recommendation 00000000 ~ . 57

REFERENCES 00~00000000 ~58

APPENDIX I: ~ 0 60

QUESTIONNAIRE. ~00 000~000 000 000 . 60

APPENDIX II: TIME FRAME WORK..0000000. 64

APPENDIX III: ESTIMATED BUDGET000. ~.. 65