Taxation And Business Performance Case Study: Braliga And Sons Enterprise, Adjumani Town.

TABLE OF CONTENTS DECLARATION ............................................................................................. .i APPROVAL .................................................................................................. .ii TABLE OF CONTENTS ................................................................................... .iii LIST OF ACRONYMS ................................................................................... . CHAPTER ONE 1.1 Background of the study ............................................................................. I 1.2 Statement of the problem ............................................................................ 3 1.3 Purpose of the study .................................................................................. 3 1.4 Specific objectives of the study ....................................................................... .3 1.5 Research questions ................................................................................... .4 1.6 Scope of the study ....................................................................................... .4 1.7 Significance of the study ............................................................................ .4 1.8 Conceptual frame work ................................................................................... 5 CHAPTER TWO LITERATURE REVIEW 2.0 Introduction ............................................................................................. 6 2.1 Definition of the concepts ............................................................................ 6 2.2 Classification of taxes ................................................................................. 6 2.3 Tax rate structures .................................................................................... 8 2.4 Types of common taxation ............................................................................ 9 2.5 Principles or canons of taxation ................................................................... .12 2.6 Objectives oftaxation ............................................................................... 14 2.7 The effects oftaxation .............................................................................. .17 CHAPTRE THREE METHODOLOGY 3.0 Introduction ........................................................................................... 19 3.1 Research design ....................................................................................... 19 3 .2 Area of study ......................................................................................... .19 3.3 Study population ...................................................................................... 19 3.4 Sampling design ....................................................................................... .19 3.5 Data collection instruments .......................................................................... 20 3.6 Research procedure .................................................................................... 21 3.7 Data analysis and presentation ...................................................................... 2 I 3.8 Research limitation .................................................................................... 21 iii CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.0 Introduction ........................................................................................... 22 4.1 Age ...................................................................................................... 22 4.2 Sex ....................................................................................................... 23 4.3 Gender. .................................................................................................. 23 4.3 Marital status .......................................................................................... 24 4.4 Level of education qualification ..................................................................... 24 4.5 Department or Sector .................................................................................. 25 4.6 Opinion of respondents on the taxation system used in Adjumani town council. ............. 26 4.7 Data analysis on how does the traders respond after receiving the tax assessment form ... 27 4.8 Data analysis on how tax assessment forms are been delivered to the traders .................. 27 4. 9 Data analysis on how the respondent always understands what taxation is? .................. 28 4.10 The respondents view on really does taxation affect the performance of business ............ 29 4.11 Opinion ofrespondents on what form of taxation common used in Adjumani town council.29 4.12 The respondents view on the common form of taxation used in the various sectors ........... 30 CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENADATIONS 5.0 Introduction ............................................................................................ 32 5.1 Summary of the finding ............................................................................... 32 5.2 Conclusion ............................................................................................. .33 5.3 Recommendation ...................................................................................... .34 5.4 Areas for further research ............................................................................. 34 Appendix ................................................................................................ 37 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . ....................... 3 7 Questionnaires .......................................................................................... .3 9 IV

CHAPTER ONE

1.0 BACKGROUND OF THE STUDY Taxes have existed virtually as long as there have been organized governments. In the middle ages, individuals provided services directly to their lords. These were all taxes although they were not monitored. In modern communities, it is generally accepted that governments have to collect taxes in order to pay for the collective services to be rendered to the public. In this context, taxation is considered to be a transfer of monetary resources from private sector to the public sector. However, unlike most transfer, it is not entered into voluntarily. Taxation is compulsory. The argument for taxation to be compulsory rotates around the need for public services. The forced transfer may appear to be a violation of human freedom but transfers through the government wear the mantle of legality and respectability conferred upon them by the political process. Problems only arise in distinguishing legitimate collections from illegitimate uses of the powers of taxation.