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The Influence of Income Tax Law on the Relationship Between Demographic Factors and Income Tax Compliance in Uganda

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  • Isaac Peter OTAI

    (Department of Accounting, Finance and Microfinance, School of Management and Entrepreneurship, Kyambogo University, Kampala, Uganda)

Abstract

The paper aims to examine the moderating consequence of income tax law in the association between demographic factors and compliance with income tax amongst owners of sole proprietorship small and medium enterprises (SMEs) in Soroti, Uganda. Descriptive and explanatory research designs were employed. Using proportionate stratified and simple random sampling techniques, the study selected 384 participants from the target population of 2,590 owners of sole proprietorship SMEs in Soroti, Uganda. Primary data was gathered using questionnaires and data was analysed using inferential (logistic regression) statistics with the help of Statistical Package for Social Scientists (SPSS). Hypothesis tests were done at a five percent significance level. Findings disclosed that income tax law significantly moderated the relationship between demographic factors and income tax compliance. The study draws attention to an issue that has been overlooked by many scholars. Aside from revamping key and associated literature on the study variables, this study identified a gap that had been neglected in betimes research. Income tax law as a moderator variable is an area that has been less covered. The findings of this study point to the importance of designing income tax laws that prompt individuals to comply with income tax obligations. The study recommends that the Ministry of Finance in collaboration with the relevant legislative bodies ought to evaluate the income tax law and particularly reconsider its complex nature.

Suggested Citation

  • Isaac Peter OTAI, 2024. "The Influence of Income Tax Law on the Relationship Between Demographic Factors and Income Tax Compliance in Uganda," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 5(10), pages 64-73, October.
    • Handle: RePEc:ahd:journl:v:5:y:2024:i:10:p:64-73
    DOI: 10.37945/cbr.2024.10.07
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    References listed on IDEAS

    as
    1. Allingham, Michael G. & Sandmo, Agnar, 1972. "Income tax evasion: a theoretical analysis," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 323-338, November.
    2. Abidemi C. Adegboye & Ifeoluwa Alao-Owunna & Monday I. Egharevba, 2018. "Smes Business Characteristics, Tax Administration And Tax Compliance By Smes In Nigeria," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 3(Special), pages 7-17, May.
    3. Say Youde & Seunghoo Lim, 2019. "The Determinants of Medium Taxpayers’ Compliance Perspectives: Empirical Evidence from Siem Reap Province, Cambodia," International Journal of Public Administration, Taylor & Francis Journals, vol. 42(14), pages 1222-1233, October.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    age; experience; level of income; filing of income tax returns;
    All these keywords.

    JEL classification:

    • K34 - Law and Economics - - Other Substantive Areas of Law - - - Tax Law
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • J19 - Labor and Demographic Economics - - Demographic Economics - - - Other

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