Tax education, tax audit and rental income, tax compliance

Abstract

This study was undertaken to examine the relationship between tax education, tax audit and Rental income tax compliance. The objectives were to establish the level of Tax education, Tax Audit and RIT Compliance in URA. Examine the relationship between Tax education, Tax audit and Tax Compliance in URA.Thus this study was conducted under the above motivation a cross-sectional research framework; combining both descriptive and the analytical survey methods, targeting a study sample of 129 individuals or stakeholders with one or more common characteristics from the four selected Kampala tax districts of URA.

From the study findings; it was discovered that more efforts are still required to raise the tax awareness and education methodologies since the two variables performance as per the study findings was poor. More efforts should be directed towards increasing the tax payers’ knowledge as regards completing tax return filling forms as this will save the tax payers from incurring heavily on tax consultants and even on URA staffs in their processes of return filling. In addition, the ethical and professional characters of URA staff, who are paid by tax payers to help them complete returns should be internally battled as this does not only lower the organization’s reputation but also creates a conflict of interest between the organization and the officers involved in such practices. Further research should be carried out to establish the impact of tax education and tax audit on rental income tax compliance qualitatively, a comparative study between tax educations, tax audit on two different tax heads and the impact of the existing procedures, regulations and laws of taxation concerning rental income tax.