Browsing by Author "Gwokyalya, Waliya"

Now showing 1 - 1 of 1
  • Thumbnail Image
    Item
    Tax compliance behaviour of small business enterprises in Uganda
    (Journal of Financial Crime, 2019) Kiconco, Rebecca Isabella; Gwokyalya, Waliya; Sserwanga, Arthur; Balunywa, Waswa
    This study aims to investigate the extent to which the theory of reasoned action (TRA) can be used to explain tax compliance among small business enterprises (SBEs) in Uganda and extends the application and relevance of the theory to a new area of tax compliance. It contributes the TRA, as a predictor of tax compliance in a developing country context. Design/methodology/approach – A cross-sectional survey targeting different categories of SBEs was carried out using interviewer-administered questionnaires. A sample of 384 SBEs was used in the study. Findings – The TRA contributes critical insights on the tax compliance behaviour of small businesses in developing economies. It influences tax compliance behaviour. The study illustrates evidence about the negative attitudes SBEs have on intentions to comply with tax regulations and the extent to which these attitudes influence their compliance behaviour. Subjective norms positively influence tax compliance intentions in a positive manner. Overall, the appearance of these intentions shows a negative effect on tax compliance behaviour. These findings also imply that Uganda Revenue Authority needs to understand the social psychology of taxpayers and tailor these in their policies and efforts to increase compliance. Research limitations/implications – The TRA has been used to explain behaviour in numerous situations in psychology. The study used this theory in a new geographical, economic and administrative environment; Uganda. This theory has proved relevant in explaining psychological, sociological and economic behaviour; specifically tax compliance. The TRA was revised to include a new construct of perceived behavioural control, which turned into the theory of planned behaviour. This could not be studied due to time and logistic constraints. Therefore, there is a need to investigate if this revised theory can explain tax compliance behaviour better. Practical implications – The paper suggests that tax administration efforts and policies should consider the social-psychology aspects of the taxpayers to improve tax compliance. Originality/value – This study adds a new arena of explaining tax compliance from a theory commonly used in psychology to a new setting in finance.