Electronic Tax System and Tax Compliance Among Selected SMEs in Buyaga Town Council Bulambuli District

Abstract

This study was set to examine electronic tax system and tax compliance among selected SMEs in Buyaga Town Council, Bulambuli District. The study determined how the internet payment filing system contribute on tax compliance, examined how mobile payment filing system contribute on tax compliance, found out how electronic billing machine contribute on tax compliance, and examined the relationship between electronic tax system and tax compliance in Buyaga Town Council, Bulambuli District. A descriptive survey design, using a sample of 97 respondents was adopted. The respondents were chosen from Buyaga Town Council Bulambuli District. Simple random sampling was used to select the respondents and data was collected using well designed structured questionnaires. Findings revealed that internet payment filing system facilitates registration of taxpayers, this is shown by the mean value of 4.26. It was found that clients pay tax easily from anywhere by use of their mobile phone as reflected by mean value of 4.09. It was also found that the use of electronic billing machines accelerates the processing of accounting and financial documentation as reflected by the mean of 4.23. Furthermore, there is a significant positive relationship between electronic tax system and tax compliance (r = 0.977, P<0.01). In conclusion, there is a direct relationship between internet payment filing system, mobile payment filing system, electronic billing machine and tax compliance. The researcher recommends that URA should ensure that there is country wide training to clients on usage of various e-tax applications for efficient tax compliance. For example, training on mobile application and EBM usage.