Tax administration, procedural justice, tax payers' attitude and tax compliance among small business income earners in Arua district.

Abstract

The purpose of the study was to establish the relationship between tax administration, procedural justice, tax payers’ attitude, perceived enforcement of tax law and tax compliance The study adopted a cross sectional design which was quantitative in nature, this is because data was collected one point in time. The study sample comprised of 175 Small business income earners of which 161 responded which was 92% response rate. The data was tested for reliability, analyzed using SPSS and results presented based on the study objectives. Results revealed positive and significant relationships between perceived enforcement of tax laws and tax compliance, procedural justice and perceived enforcement of the tax law, procedural justice and tax payers and a positive relationship between tax administration and tax compliance and tax payers attitude and tax compliance. This implies that when one variable is improved it leads to improvement of the other. In addition, perceived enforcement of the tax law was found to be a better predictor of tax compliance followed by procedural justice, tax payers’ attitude and tax administration. The study recommended that since there was a positive relationship between tax administration, procedural justice, tax payers’ attitude, perceived enforcement of the tax and tax compliance, the tax authority needs to put all this factors into consideration if they are to realize increased levels of revenue through tax compliance.