Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda

The purpose of this study is to examine the relationship between knowledge requirements, complexity of the tax system and tax compliance in Uganda while exploring the indirect effects of compliance costs. The research design was cross sectional and correlational using VAT registered withholding agen...

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Autor principal:	Doreen Musimenta
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2020
Materias:	knowledge requirements tax complexity compliance costs tax compliance uganda tax agents Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/39f83b8d55ac4c5fab849ccee030130d
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spelling	oai:doaj.org-article:39f83b8d55ac4c5fab849ccee030130d2021-12-02T14:41:54ZKnowledge requirements, tax complexity, compliance costs and tax compliance in Uganda2331-197510.1080/23311975.2020.1812220https://doaj.org/article/39f83b8d55ac4c5fab849ccee030130d2020-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2020.1812220https://doaj.org/toc/2331-1975The purpose of this study is to examine the relationship between knowledge requirements, complexity of the tax system and tax compliance in Uganda while exploring the indirect effects of compliance costs. The research design was cross sectional and correlational using VAT registered withholding agents. This study results suggest that knowledge requirements do not have a significant relationship with compliance costs. Knowledge requirements are best suited in explaining the internal costs of compliance than external costs. Our results indicated that taxpayers have sufficient tax knowledge to enable them comply with taxes but that does not rule out the fact that taxpayers still incur the cost of complying. When the system of taxation becomes more complex, then the cost of complying also becomes high. The complex tax systems require taxpayers to obtain extra training as well as seeking external professional advice in order to comply. Therefore, that tax complexity has a direct and indirect impact (through compliance costs) on tax compliance. Rather than focusing only on the importance of the normal analytical deliberation of knowledge requirements and tax complexity by taxpayers in influencing their tax compliance, the current paper shows that in addition, the indirect effect of compliance costs in establishing the basis for understanding taxpayers’ compliance. Methodologically, this study solicits responses from taxpayers who are deemed to be tax compliant and have been designated to withhold VAT (which is one of the biggest indirect taxes collected in Uganda) in addition to paying income taxes. This probably offers a unique way of deriving better results than previous studies which have basically concentrated on just taxpayers regardless of whether they are presumed compliant or not.Doreen MusimentaTaylor & Francis Grouparticleknowledge requirementstax complexitycompliance coststax complianceugandatax agentsBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 7, Iss 1 (2020)
institution	DOAJ
collection	DOAJ
language	EN
topic	knowledge requirements tax complexity compliance costs tax compliance uganda tax agents Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	knowledge requirements tax complexity compliance costs tax compliance uganda tax agents Business HF5001-6182 Management. Industrial management HD28-70 Doreen Musimenta Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
description	The purpose of this study is to examine the relationship between knowledge requirements, complexity of the tax system and tax compliance in Uganda while exploring the indirect effects of compliance costs. The research design was cross sectional and correlational using VAT registered withholding agents. This study results suggest that knowledge requirements do not have a significant relationship with compliance costs. Knowledge requirements are best suited in explaining the internal costs of compliance than external costs. Our results indicated that taxpayers have sufficient tax knowledge to enable them comply with taxes but that does not rule out the fact that taxpayers still incur the cost of complying. When the system of taxation becomes more complex, then the cost of complying also becomes high. The complex tax systems require taxpayers to obtain extra training as well as seeking external professional advice in order to comply. Therefore, that tax complexity has a direct and indirect impact (through compliance costs) on tax compliance. Rather than focusing only on the importance of the normal analytical deliberation of knowledge requirements and tax complexity by taxpayers in influencing their tax compliance, the current paper shows that in addition, the indirect effect of compliance costs in establishing the basis for understanding taxpayers’ compliance. Methodologically, this study solicits responses from taxpayers who are deemed to be tax compliant and have been designated to withhold VAT (which is one of the biggest indirect taxes collected in Uganda) in addition to paying income taxes. This probably offers a unique way of deriving better results than previous studies which have basically concentrated on just taxpayers regardless of whether they are presumed compliant or not.
format	article
author	Doreen Musimenta
author_facet	Doreen Musimenta
author_sort	Doreen Musimenta
title	Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
title_short	Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
title_full	Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
title_fullStr	Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
title_full_unstemmed	Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda
title_sort	knowledge requirements, tax complexity, compliance costs and tax compliance in uganda
publisher	Taylor & Francis Group
publishDate	2020
url	https://doaj.org/article/39f83b8d55ac4c5fab849ccee030130d
work_keys_str_mv	AT doreenmusimenta knowledgerequirementstaxcomplexitycompliancecostsandtaxcomplianceinuganda
_version_	1718389863914405888

Knowledge requirements, tax complexity, compliance costs and tax compliance in Uganda

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