International Journal of Social Science & Economic Research
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Title:
TAX UNDERSTANDING, TAX AWARENESS, AND TAX COMPLIANCE IN NAKAWA DIVISION, KAMPALA DISTRICT, UGANDA: THE MODERATING ROLE OF PUBLIC TRUST

Authors:
Alex Mugarura , Will Kaberuka , Gregory Tweheyo and Bruno Muramuzi

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Alex Mugarura1 , Will Kaberuka2 , Gregory Tweheyo3 and Bruno Muramuzi4
1,2,4. Makerere University Business School, P.O Box 1337, Kampala, Uganda
3. Busitema University, P.O Box 236, Tororo, Uganda

MLA 8
Mugarura, Alex, et al. "TAX UNDERSTANDING, TAX AWARENESS, AND TAX COMPLIANCE IN NAKAWA DIVISION, KAMPALA DISTRICT, UGANDA: THE MODERATING ROLE OF PUBLIC TRUST." Int. j. of Social Science and Economic Research, vol. 6, no. 11, Nov. 2021, pp. 4301-4322, doi.org/10.46609/IJSSER.2021.v06i11.005. Accessed Nov. 2021.
APA 6
Mugarura, A., Kaberuka, W., Tweheyo, G., & Muramuzi, B. (2021, November). TAX UNDERSTANDING, TAX AWARENESS, AND TAX COMPLIANCE IN NAKAWA DIVISION, KAMPALA DISTRICT, UGANDA: THE MODERATING ROLE OF PUBLIC TRUST. Int. j. of Social Science and Economic Research, 6(11), 4301-4322. Retrieved from doi.org/10.46609/IJSSER.2021.v06i11.005
Chicago
Mugarura, Alex, Will Kaberuka, Gregory Tweheyo, and Bruno Muramuzi. "TAX UNDERSTANDING, TAX AWARENESS, AND TAX COMPLIANCE IN NAKAWA DIVISION, KAMPALA DISTRICT, UGANDA: THE MODERATING ROLE OF PUBLIC TRUST." Int. j. of Social Science and Economic Research 6, no. 11 (November 2021), 4301-4322. Accessed November, 2021. doi.org/10.46609/IJSSER.2021.v06i11.005.

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Abstract:
Although non-compliance seems to become a global concern in developing countries, most Sub?Sahara African countries are the hardest hit. Most taxpayers are unwilling to comply with tax obligations due to negative attitudes and mistrust associated with misappropriation and misallocation of public funds/taxpayers money to priorities which the taxpayers presume not to be of the best interest. Studies have shown that tax knowledge gap, compliance and tax laws awareness have continued to affect the growth and survival of small and medium enterprise. But these studies have not explained the moderation role of public trust on the relationship between tax understanding, tax awareness and tax compliance This study was carried out to investigate the moderation role of public trust on the relationship between tax understanding, awareness and tax compliance. A cross sectional research design was adopted using both convenient (for SMEs) and purposive sampling (for the respondents) methods. Data was collected using a questionnaire from 120 Small and Medium-sized enterprises (SMEs) in Nakawa division, Kampala. The analysis was done using descriptive statistics, correlation and regression analysis. The study indicates that about 60% of the Small and median enterprises are registered with Uganda Revenue Authority in Nakawa division. The study further revealed that public trust plays a moderation role on the relationship between tax understanding and taxpayer compliance among SMEs in Uganda. However, the relationship between tax awareness and taxpayer compliance in SMEs is not moderated by public trust. The government should therefore put rigorous measures/policies in place to govern and strengthen the tax administration system. This will in turn create a sense of accountability and a perception of good governance to the taxpayers, which will lead into compliance in the long run.

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