EFFECT OF ELECTRONIC TAX SYSTEMS ON REVENUE COLLECTION IN

UGANDA

ACASE STUDY OF UGANDA REVENUE AUTHORITY NAKAWA

BY

Emmanuel Lugimbirwa Wamala 19/186

Stephen Othieno 19/126

Racheal Achieng 19/124

Edwin Kabweru 19/156

Daniel Okot 18/091

Samson Okumu 17/133

Grace Nahurira Mutabazi 19/193

Oyesigye Daphine Nyamwija 18/036

A RESEARCH REPORT SUBMITTED TO EAST AFRICAN SCHOOL

OF TAXATION IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE

AWARD OF POSTGRADUATE DIPLOMA IN TAX AND REVENUE

ADMINISTRATION OF EAST AFRICAN SCHOOL OF TAXATION.

DECEMBER, 2021
 DECLARATION

We declare that this research report is our original work and has not been presented for any other

certification in any other university or institution.

Name Reg No Signature Date

Emmanuel Lugimbirwa Wamala 19/186

Stephen Othieno 19/126

Racheal Achieng 19/124

Edwin Kabweru 19/156

Okot Daniel 18/091

Okumu Samson 17/133

Grace Nahurira Mutabazi 19/193

Oyesigye Daphine Nyamwija 18/036

 APPROVAL

This research report has been done under my supervision. I approve its submission for

examination to East African School of Taxation in partial fulfillment of the requirements for the

award of Post Graduate Diploma in Tax and Revenue Administration.

Name: Dr. Joel Emojong (Supervisor)

Signature …………………………………… Date ……………………….

ii
 DEDICATION

We dedicate this piece of work to our families especially our parents, sisters, brothers and all our

friends not forgetting our colleagues at the East African School of taxation and all those whose

input was vital, we say thank you.

iii
 ACKNOWLEDGEMENT

Many people have contributed in one way or another towards the success of this work and we

would like to convey our appreciation to them. First and foremost, we thank the almighty God

for giving us good health, wisdom, and courage of undertaking this proposal. We would also like

to acknowledge the input of our supervisor who carefully reviewed, and gently commented on

the report and progress. Without your consideration, input and patience, this study would not

have been completed.

iv
 TABLE OF CONTENTS

DECLARATION..............................................................................................................................i

APPROVAL....................................................................................................................................ii

DEDICATION...............................................................................................................................iii

ACKNOWLEDGEMENT..............................................................................................................iv

TABLE OF CONTENTS................................................................................................................v

LIST OF TABLES.......................................................................................................................viii

ABBREVIATIONS/ACRONYMS................................................................................................ix

ABSTRACT....................................................................................................................................x

CHAPTER ONE..............................................................................................................................1

INTRODUCTION AND BACKGROUND TO THE STUDY.......................................................1

1.1 Introduction................................................................................................................................1

1.2 Background to the study............................................................................................................1

1.4 Objectives of the study..............................................................................................................3

1.4.1 General objective....................................................................................................................3

1.4.2 Specific objectives..................................................................................................................3

1.5 Research questions.....................................................................................................................4

1.7 The study scope.........................................................................................................................4

1.7.1 Content scope..........................................................................................................................4

1.7.2 Geographical coverage/scope.................................................................................................5

1.7.3 Time scope..............................................................................................................................5

1.8 Justification of the Research Study............................................................................................5

1.9 Significance of the study...........................................................................................................6

1.10 Limitations and delimitations..................................................................................................6

CHAPTER TWO.............................................................................................................................8

v
LITERATURE REVIEW................................................................................................................8

2.0 Introduction................................................................................................................................8

2.1 Relationship between ICT and revenue collection....................................................................8

2.3 Relationship between mobile tax payment system and revenue collection.............................12

2.3 Online tax identification number (TIN) registration and revenue collection..........................14

2.5 Chapter summary.....................................................................................................................16

CHAPTER THREE.......................................................................................................................17

RESEARCH DESIGN AND METHODOLOGY.........................................................................17

3.1 Introduction..............................................................................................................................17

3.2 Research Design......................................................................................................................17

3.3 Location of the research problem............................................................................................18

3.4 Research methodology.............................................................................................................18

3.5 Population of study..................................................................................................................18

3.6 Sample size and selection........................................................................................................18

3.7 Sampling techniques................................................................................................................19

3.8 Methods of data collection.......................................................................................................19

3.8.1 Questionnaire survey............................................................................................................20

3.8.2 Interview method..................................................................................................................20

3.9 Instruments of data collection..................................................................................................20

3.9.1 Questionnaire..................................................................................................................20

3.9.2 Interview guide...............................................................................................................21

3.10 Data quality............................................................................................................................21

3.10.1 Reliability of Instruments...................................................................................................21

.10.2 Validity of Instruments.........................................................................................................22

3.11 Research process procedure...................................................................................................23

vi
3.12 Data Analysis.........................................................................................................................23

3.12.1 Qualitative data...................................................................................................................23

3.12.2 Quantitative data.................................................................................................................24

3.13 Measurement of variables......................................................................................................24

CHAPTER FOUR.........................................................................................................................26

PRESENTATION OF FINDINGS, INTERPRETATION AND DISCUSSION..........................26

4.1 Introduction..............................................................................................................................26

4.2 Demographic characteristics of respondents...........................................................................26

4.3Relationship between ICT use and revenue collection at Uganda revenue authority (URA) at
Nakawa head offices......................................................................................................................28

4.3.1 Linear regression relationship between ICT use and revenue collection at Uganda revenue
authority (URA) at Nakawa head offices......................................................................................31

4.4 Relationship between mobile tax payment system and revenue collection in URA Nakawa
head offices....................................................................................................................................33

4.4.1 Linear regression model on the relationship between mobile tax payment system and
revenue collection in URA Nakawa head offices..........................................................................35

4.5 Relationship between online tax identification number registration and revenue collection in
URA at Nakawa head offices........................................................................................................37

4.5.1 Linear regression on the effect of relationship between online tax identification number
registration and revenue collection in URA at Nakawa head offices............................................39

CHAPTER FIVE...........................................................................................................................41

SUMMARY, CONCLUSION AND RECOMMENDATIONS....................................................41

5.1 Introduction..............................................................................................................................41

5.2 Summary of Findings..............................................................................................................41

5.2.1 Relationship between ICT and Revenue Collection at URA................................................41

5.2.2 Relationship between use of mobile money and revenue collection in Uganda..................41

vii
5.2.3 Effects of online TIN registration on revenue collection.....................................................42

5.3 Conclusions..............................................................................................................................42

5.4 Recommendations....................................................................................................................43

Appendix I-Questionnaire.............................................................................................................52

Appendix II Interview guide..........................................................................................................57

Appendix III: Estimated Budget....................................................................................................58

viii
 LIST OF TABLES

Table 1 Reliability of research instruments...................................................................................22

Table 4.2 demographic characteristics of respondents..................................................................26
Table 4.3 descriptive statistics on the relationship between ICT use and revenue collection at
Uganda revenue authority (URA) at Nakawa head offices...........................................................28
Table 4.2.1 Linear regression Relationship between ICT use and revenue collection at Uganda
revenue authority (URA) at Nakawa head offices.........................................................................31
Table 4.5 Descriptive statistics on relationship between mobile tax payment system and revenue
collection in URA Nakawa head offices.......................................................................................33
Table 4.6 Descriptive statistics on the relationship between online tax identification number
registration and revenue collection in URA at Nakawa head offices............................................37

ix
 ABBREVIATIONS/ACRONYMS

E-TAX: Electronic Taxation

ICT: Information Communication Technology

PAYE: Pay as You Earn

TIN: Tax Identification number

URA: Uganda Revenue Authority

VAT: Value Added Tax

x
 ABSTRACT

The purpose of this study was to determine the relationship between electronic tax systems and
revenue collection in Uganda. The specific objectives were to: assess the relationship between
ICT use and revenue collection at Uganda revenue authority (URA) at Nakawa head offices,
establish the relationship between mobile tax payment system and revenue collection in URA
Nakawa head offices, and determine the relationship between online tax identification number
registration and revenue collection in URA at Nakawa head offices. The study applied mixed
methods research to collect data from a total of 120 URA employees and taxpayers.
Questionnaires and interview guides were used to collect data. SPSS was used for data analysis
and descriptive statistics were generated. The findings indicated that ICT has a significant impact
on positive impact on revenue collection with a linear regression of Adj R-Square=0.385,
P=0.000, while the use of mobile money and electronic TIN registration had minimal impact on
revenue collection as evidenced by linear regression results of Adj R-Square=0.021, P=0.256,
and Adj R-Square=0.121, P=0.143 respectively. The study recommends that the government
should devise other methods expanding its revenue base and stopping injecting too much money
and time streamlining the TIN registration status since the findings has indicated that online TIN
registration and mobile money payments have minimal impact on revenue collection

xi
 CHAPTER ONE

INTRODUCTION AND BACKGROUND TO THE STUDY

1.1 Introduction

This chapter describes the study background, statement of the research problem, purpose of the

study, research objectives, and research questions, scope and significance of the study and

limitations and delimitations.

1.2 Background to the study

Electronic tax system is the tax administration system that has been developed by the URA to

replace the old manual system. It is a web-enabled and secure application system that provides a

fully integrated and automated solution for administration of both customs and URA taxes

(Revenue statistics, 2017). It enables taxpayer internet based Personal Identification Number

(PIN) registration, returns filing, payment registration to allow for tax payments and status

inquiries with real-time monitoring of accounts. This system saved the tax management

authorities such as URA from costs relating to field and paperwork (GSMA, 2020).

Electronic taxation is an antagonistic process for collecting, evaluating and automating tax

related processes in order to increase productivity where all taxpayers, taxation processes and tax

offices are automated through different tax systems such as online tap payer identification

number (TIN) registration, internet-based tax payment, and mobile money tax payment systems

which have been introduced to aid revenue collections (Jimenez et al., 2013a). The evolution of

mobile money payment system in Africa has not only improved business dealings but has also

1
improved money payment activities including government tax payments and about 90% of the

African population uses mobile money (Jimenez et al., 2013b).

Factors such as sparse bank branch coverage, extended waiting times for transfers and

infrastructure challenges (particularly power), still make bank transfers less desirable for most

payments and people have resorted to mobile money payments even or taxes. According to study

Kituyi (2020), revealed that internet payment/filing system facilitates registration of taxpayers,

clients pay tax easily from anywhere by use of their mobile phone use of electronic billing

machines accelerates the processing of accounting and financial documentation. The study

established that there is a significant positive relationship between electronic tax system and

revenue collection performance (r = 0.977, P<0.01)

Electronic tax system forms part of the revenue collection reforms by Uganda Revenue

Authority whose main motive is enhancing tax collections following the country’s rapid

economic development (Almalki, 2016). In this regard, the planning and formulation phase of an

elaborate electronic system strategy was done in the Uganda Revenue Authority Corporate Plan

of 2009 and was implemented in the fourth corporate plan of 2011(Ministry of Finance Planning

and Economic Development, 2019). The effect of electronic tax system on local revenue

collection performance has been studied in various countries across the world. However, not

much research has been covered in this area on Uganda’s Revenue Authority in Uganda

(Mawejje & Munyambonera, 2016). With reference to the ambiguities arising in previous studies

as well as the absence of extensive research in this area of study in Uganda specifically in URA,

this research seeks to find out the effect of electronic systems on revenue collection in Uganda; a

case study of Uganda revenue authority Nakawa

2
1.3 Problem statement

The URA was created in 1991 as a semi autonomous organization to improve on tax

administration and revenue collection in Uganda. Over the years government has assigned

increasing revenue targets to the institution in order to collect more revenue to finance the ever

increasing budgets. Meeting this obligation necessitated increase in revenue collection which is

why in 2009 URA focused more on making further improvements in tax administration, building

a culture of tax compliance, and enhancing public confidence through improved service delivery

than making tax rate rates adjustments. In this regard, URA introduced and implemented e tax –

a modern tax administration system to foster taxpayer registration, assessment and payments of

taxes (Ministry of Finance Planning and Economic Development, 2019). However, little is

known about how these electronic systems have impacted on revenue collection in Uganda

because URA is still at a low of 13% tax to GDP which is still meager in financing government

budgets.

1.4 Objectives of the study

1.4.1 General objective

To determine the relationship between electronic tax systems and revenue collection in Uganda

1.4.2 Specific objectives

i. To assess the relationship between ICT, use and revenue collection at Uganda revenue

authority (URA) at Nakawa head offices

ii. To establish the relationship between mobile tax payment system and revenue collection

in URA Nakawa head offices

3
 iii. To determine the relationship between online tax identification number registration and

revenue collection in URA at Nakawa head offices

1.5 Research questions

i. What is the relationship between ICT use and revenue collection at Uganda revenue

authority (URA) at Nakawa head offices?

ii. What is the relationship between mobile tax payment system and revenue collection in

URA Nakawa head offices?

iii. What is the relationship between online tax identification number (TIN) registration and

revenue collection in URA at Nakawa head office?

1.7 The study scope

This is categorized in 3 (three) parts, and they include: content, physical/geography, and

spatial/time scopes. A research scope means the parameter under the research operation (Simon

& Goes, 2013). These authors asset that the research problem under resolution must fit within the

limit of certain parameters

1.7.1 Content scope

The Research covered the relationship between electronic tax system and revenue collection with

specific emphasis on identifying electronic tax practices, relationship between mobile money

payment system and tax collection and the relationship between online TIN registration and tax

collection in URA. Revenue collection is measured in terms of amount of revenue collected, tax

evasion, avoidance, and tax payment.

4
1.7.2 Geographical coverage/scope

Research took place in Nakawa, URA Tower, a building in Uganda that serves as the

headquarters of Uganda Revenue Authority (URA) covering selected employees. This project

was conducted at URA tower because this is the central place through which the URA human

resources, systems, and process are harnessed for efficient collection of taxes. It is also the place

within the jurisdiction of Nakawa Division of Kampala from where the investigators expected to

obtain all the data relating to tax collections in Uganda. Therefore, information obtained from

this organization can be used for generalization of contribution of electronic tax payment

systems on revenue collection in Uganda.

1.7.3 Time scope

The research study considered a period from 2009 to 2019. The researcher covered this period of

time in order to get adequate information that has piled up over a long period of time and was

sufficient in assessing the effect of electronic tax systems.

1.8 Justification of the Research Study

The electronic tax system has been under revision since the beginning of 2005, mainly due to

poor revenue collection as a percentage of GDP to public expenditure. According to Onein

(1987),the deficit forced Uganda Revenue Authority to come up with a number of tax reforms

like a modernization drive that culminated into an ambitious integrated tax administration system

dubbed electronic tax(e-tax).

Despite tremendous Uganda’s macroeconomic stability over the recent years, poor revenue

collection is a major budget constraint, that’s why 30% 0f the total budget is financed by the

5
country’s developing partners. It is therefore critical that such a study is conducted to establish if

the gaps in revenue collections have been sealed by the electronic tax system that has been in

place for some time now.

1.9 Significance of the study

The findings of the study are expected to contribute to the existing literature about taxation

especially electronic tax and the effects it causes to the tax system and the economy. That is

informing the Business Community, Policy makers, Scholars, practitioners in the fields of

taxation and the Public at large of the existing Electronic Tax System audits and advantages in

fulfilling their tax obligations.

To the tax authority and government, the study may guide and help them plan for the next tax

regime having been able to assess whether there is revenue growth or not caused by the

electronic system.

The future academicians especially institute of taxation students, the study may help in gaining

insight about electronic tax system and revenue collection and performance.

Finally, the researchers were able to acquire hands on skills about processing of research work

and data analysis. This proficiency may enable the researchers to handle such related work with a

lot of precision and proficiency.

1.10 Limitations and delimitations

A few limitations were faced as anticipated, and they included the following.

6
The employees of URA were not willing to disclose out some of the information to the

researchers due its sensitivity in nature. However, this problem was solved by assuring them that

the study is purely for academic purposes.

Funds were limited to cover all costs while carrying out this study. These costs include transport,

communication, and stationery. However, this was solved by seeking financial assistance from

relatives and friends.

Time constraints due to the Covid-19 pandemic and the need to balance work and studies was a

big challenge, however this was solved by asking off days from work.

7
 CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

In this chapter, we review available literature on electronic tax systems and revenue collection. It

focuses on the key variables of the study which are the electronic tax practices, the role of mobile

money payments on tax collection and the relationship between online TIN registration and tax

collections. The chapter further presents the existing knowledge as regards to the study topic and

highlights the knowledge gap.

2.1 Relationship between ICT and revenue collection

The leveraging of ICT for the modernization of public administration and service delivery is

receiving increased attention from governments and donor agencies (Agbesi, 2019). ICT enables

governments to minimize the time, cost and resources to deliver taxpayer services, which has led

to enhanced convenience, transparency and trust in the public service. Taxpayers no longer need

to go to the tax office personally and wait to file their tax returns or send mail. At the same time,

some public sector ICT projects have received criticism for not delivering the desired results and

for leading to unproductive investments without much improvement in the quality-of-service

delivery (Mawejje & Munyambonera, 2016). This implies that ICT technologies shall increase

the efficiency of revenue collection and save taxpayers costs of transportation to tax offices.

Revenue collection is the act by which the government collects its taxes. These taxes include

PAYE, import duty, excise duty, VAT, Agency Taxes and Exchequer Revenue (Haruna, 2019).

The Agency Taxes include Airport Revenue, Petroleum Development Levy, Road Transit Toll,

8
Sugar Level, Traffic Fees, Petroleum Regulatory Levy, Merchant Shipping Fee and Railway

Development Levy. Exchequer Revenue includes Stamp Duty and Import Declaration Fees.

Electronic systems have been developed to ease the collection these taxes (Patman& Yao, 2020).

According to GSMA, (2020) electronic tax filing systems that have been applied by Uganda

revenue authority increase the quality and quantity of information available to tax officers,

enabling them to complete transactions faster and more accurately (Patman& Yao, 2020). Tax

returns filed electronically have much lower error rates than paper returns and substantially cut

the need to impose penalties and other punitive measures to foster compliance (Jimenez et al.,

2013a). Moreover, electronic returns allow tax officers to issue assessments and refunds more

quickly, and enable the taxpayers know the right way if their returns have been accepted by the

tax authority’s findings (Namusonge, 2018). Studies have also established that electronic filing

lowers the cost of handling returns allowing administrative resources to be reallocated to other

tasks such as auditing, customer services and tracking non-compliance (Ali et al., 2017).

The benefits of e-filing and e-payment systems extend to other electronic processes in the tax

authority. Kituyi, (2020) contends that E-filing and e-payment allow for better and safer data

storage that can be used to implement risk management system for auditing and enforcement.

This suggests that Automation helps establish a good system for tracking case files, which is

essential for effective auditing and increases the speed and quality of data provided to auditors.

In addition, e-filing systems are usually complemented by software that standardizes and

facilitates processes for taxpayers, making compliance easier (Jimenez et al., 2013a)

Scholars have argued that electronic tax system checks on corruption that is thought to be a

hindrance to revenue collection. According to Williams & Marie (2012), a well-designed

9
electronic system can lower corruption by reducing face-to-face interactions. This system

ensures that taxes are collected efficiently and reduces opportunities for corruption, since it

denies them the opportunity to handle money directly. Ideally, tax officials should have little

direct contact with taxpayers and so less discretion in deciding how to treat them. Electronic tax

filing is also easy, flexible and convenient for taxpayers. E-filing makes it possible to file returns

from a taxpayer’s home, library, financial institution, workplace, tax professional’s business or

even stores and shopping malls. With an integrated e-filing and e-payment system, taxes can be

filed and paid online from any place

Monica et al. (2017) in their study on “Effects of Electronic Tax System on Tax Collection

Efficiency in URATaxes Department of Kenya Revenue Authority (KRA established that most

taxpayers strongly agreed that they were able to fully access and operate e-Tax system.

Employee competence was a significant predictor of the tax collection efficiency (Y) with the

results as (t= -2.243, P=0.154>5%). Taxpayers seeking clarifications on tax issues online is

minimal. Handling of e-Tax issues raised by taxpayers was not satisfactory and KRA

management and other staff in other departments were partially supportive of e Tax system

The findings (Namusonge, 2018) showed that a strong and almost a perfect association existed

between ICT systems adopted in County Governments and the revenue collection; the

application of the information communication technology systems explain up to 91.9% variation

in revenue (Kikonyogo, 2020) collection efficiency in the county governments. Further findings

revealed that the application of these systems improves revenue collection efficiency in the

county governments. However, this study will focus on tax collection in the context of a division

in Kampala Capital City Authority.

10
Otieno et al., (2013) study found that there is a relationship between Information Systems (IS)

and both efficiency and effectiveness in revenue collection, there is a strong positive relationship

between Internal Control Systems and revenue collection. However, resistance to change by the

council staff was derailing the full implementation of IS. The findings of the Otieno’s study will

be useful to the present study for full integration of IS, and more specifically e-payment system,

in revenue collection.

Mudiri, (2019) while commenting on the essence of technology noted that, technology is an

important tool if properly used; otherwise, it can as well become a problem that needs solving,

rather than the solution. The technology used in tax administration such as e-tax of the URA

entails the use of computer, internet and software applications. Such Technology is only

regarded as efficient when handled by well-trained personnel and if embedded in the workflow

of the organization. Good technology needs only to be applied in tax administration if it satisfies

some basic principles which also include reducing life of tax, improving efficiency and reducing

errors in procedures, increasing multi-tasking levels of tax officers and facilitating taxpayers in

complying with tax regulations.

In the reduction of the “life-time of the tax‟, proper technology needs to ensure that the time

period between the date a property or service become liable for tax and the payment of this tax or

rate is reduced to the minimum. All technological advances in automation processing, mass data

processing and elimination of administrative challenges fall in this category.URA data posits

that, effective July 2013, URA procured an electronic cargo tracking system that has enabled

real-time monitoring of goods in transit. This has been observed to be a much more efficient e-

solution in terms of cost and time since it uses the GPS/GPRS technology. Launched in 2014,

ECTS provides real-time monitoring of transit goods and plans are under way to extend this e-

11
monitoring solution to cover the (05) EAC member states (URA, 2014). Therefore, and as

Affirmed by Alaverdi & Ortakarpuz, (2017) Technology in tax administration such as the e- tax

of URA needs to aim at enhanced efficiency and also the reduction of errors in procedures,

gathering of data automatically, as well as avoidance of duplication, storage of images of

documents, integration of aerial photography and digital plans with identification data of

property. Nonetheless, not much is known about how the e-tax has increased the multitasking

levels of the URA personnel as well as integrating all procedures in a single information system

to enhance revenue collection

2.3 Relationship between mobile tax payment system and revenue collection

In the developing world in particular, mobile payments and mobile Point of Sale (PoS)

technologies mean new populations are included in electronic payments (Nisar, 2020). While

mobile money has eased the way transactions are carried out is contributing to turning Uganda

into a cashless economy, it has, on the other hand, also denied the country tax revenue.

URA is getting a deeper sense of what it means when consumers ditch banking halls for roadside

kiosks and the comfort of their living rooms to transact over the phone. The result: less tax

revenue. While announcing this financial year´s 2021/2022 quarterly tax revenue - where the tax

body recorded a Shs 26bn deficit against its target (Kikonyogo, 2020). "With the advent of

mobile money, banks have been denied bank charges, further reducing their revenue. Also, banks

used to charge customers to open up accounts. Some banks used to charge as much as Shs

20,000 to open an account but mobile money offering free money storage for customers has

shunned away customers from opening banks accounts which are chargeable to free mobile

money services (Verhaeghe & Mathieson, 2017)

12
According to data from Bank of Uganda, Namusonge (2018) notes that with more Ugandans

paying for utility bills like water, electricity and pay-television via mobile money, the amount of

money transacted on this platform shot to Shs 12 trillion early 2018 from Shs 3.75 trillion in

2011. This amount of money transacted through mobile money was previously transacted

through banks. This implies that mobile money has made banks lose a lot of revenue from the

cash transactions which are now conducted by mobile money vendors. This poses a challenge to

tax revenue collections because while banks are established corporate entities that are used to

paying tax, a myriad of mobile money agents in Uganda could have issues with tax compliance

because of the nature of their businesses.

However there are Studies that suggest that Tax revenue authorities that allow tax payments to

be made using mobile money report higher revenue collection (Andema & Haas, 2017).

According to Mallick (2021) for example, Mauritius reported a 12% increase in tax revenues in

2018 after mobile payment facilities were adopted and in Tanzania, adoption of mobile money

tax payments has resulted in less tax avoidance, with users who had no history of paying taxes

starting to pay property and personal income taxes for the first time (Ayoki, 2017). It is possible

that government adoption of mobile payments could expand their tax base. Information

technologies have the potential to address these issues by improving access to taxpayer

information and automatizing the tax collection process (Jacobs, 2013). However, what is not

known in Uganda is the possibility that the transition to a technology-based tax collection system

can present operational challenges and may spark backlash from tax collectors who oppose the

transition.

13
2.3 Online tax identification number (TIN) registration and revenue collection

TIN registration is the process, by which the tax administration collects basic taxpayer

identifying information, such as names, addresses, and legal entity types (Mallick, 2021).  This

information allows the tax administration to know who its taxpayers are, where they are located,

and whether they are active or inactive.  Modern tax administrations also use online TIN

registrations to collect compliance information, such as business activity types or estimated

turnover, to plan future compliance activities. This is made possible through the registration

process where most tax administrations issue a unique TIN and a registration certificate and

provide the new taxpayer with information on his or her filing and payment obligations (Ayoki,

2017).

Ayoki (2017) opines that the basic registration functionality of a tax IT system includes the

storing and maintenance of taxpayer identifying information, the automatic issuance of TINs and

taxpayer certificates, and the automatic determination of taxpayer filing requirements.  Other

scholars have also affirmed that effective registration with tax IT systems uses unique TINs to

facilitate exchange of information between government agencies to ease the detection of non‐

compliance; integrates registration across taxes to allow for a single view of the taxpayer during

audit or collections; centralizes the registration database to allow for effective non‐compliance

monitoring; provides a single facility to the taxpayer to register for all taxes to simplify

compliance; and interfaces with the e‐tax system, allowing new taxpayers to register online

(Nisar, 2020)

A single centralized taxpayer registration database also enables proper planning, allowing the tax

administration to rationalize staffing and resources based on the size and geographic location of

14
the active taxpayer population.   Many of these tasks would be impossible without IT.  For

instance, Andema & Haas (2017) have illustrated that an IT system can automatically verify that

a newly issued TIN is, in fact, unique, while the same verification would be nearly impossible

manually if the taxpayer population is large.  This is in conformity with Agbesi (2019) assertion

that tax collection and administration can be improved through measures such as shifting

towards an electronic taxpayer registration system where a uniform Tax Identification Number

(TIN) would apply regardless of whether a taxpayer is registering for Personal Tax, Corporate

Tax or VAT. Although literature suggests that URA still lacks adequate and updated information

on registered taxpayers, the use of online TIN registrations coupled with improvements in

procedures, processes and systems could still be a big mitigation to the existing challenges in

accessing third party information on taxpayers for purposes of enhancing revenue collection.

Patnam & Yao, (2020) did an assessment of the impact of electronic tax register on revenue

collection by Kenya Revenue Authority western region, Kenya. Findings from their study

indicated that 75% of the respondents were of the opinion that in electronic transfer register

(ETR) machines have helped to curb cases of tax evasion, 86% of the respondents were of the

opinion that ETRs have helped increase revenue collection due to their efficient nature.

However, this study will be different from that because it looks at the revenue collection in

Uganda case study being Uganda Revenue Authority.

2.4 Conceptual framework

The section illustrated how the dependent and independent variables relate to each other. From

the figure 1 below, the independent variable is electronic tax systems, and the dependent variable

is tax collections. The independent variables are measured in terms electronic tax systems,

15
mobile tax payment system and online TIN registration while dependent variable tax collection

is measured in terms of Tax payment, revenue collected, tax avoidance and evasion.

Figure 1 Conceptual framework

2.5 Chapter summary

This chapter reviewed literature according to the study objective whereby the first objective of

the study aimed to understand the contributions of ICTs in revenue collection however the

studies reviewed here were done in other countries like Tanzania and others and there was not

study found done in relation to the role of ICTs in revenue collection using URA as a case study

leaving a gap for this study. The second objective set out to explore the role of mobile tax

payments in revenue collection and studies reviewed did not take into account mobile money

payment but only electronic tax payment transfer. Then lastly the third objective aimed to

identify how TIN registration can help in revenue collection and studies reviewed that TIN

registration aids in tax payer identification which increases revenue collection but no study

conducted using URA as a case study which leaves a research gap

16
 CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

Third chapters’ contents include: study design, study participants (population), the magnitude of

the section/sample to be included in the study, techniques used in sampling, methods used to

collect data, instruments used in collecting information, information collection procedure,

reliability and validity of data instruments, data visualization and ethical considerations

3.2 Research Design

Research deployed a cross-sectional case study plan. It was conducted by use of survey

questionnaires and interviews. Therefore, both numerical and thematic data was got. In short,

research deployed mixed research methods which is defined as an evolving method of

investigation that uses methodical mixing of measure able and thematic information inside one

scientific research (Wisdom and Creswell, 2013) and these methods aid triangulation of results

that helps in strengthening research findings (Almalki, 2016). Merging figures with thematic

methods avoids too much reliance on the previous and captures important views and familiarities

(Alasmari, 2020; Almalki, 2016; Wisdom and Creswell, 2013). Consequently, the weakness in

one research method were got rid of by the other method and on an extra thinking level,

diversified approaches of research syndicates standards, letting study from both the inductive and

deductive viewpoints, and so enabling investigators to associate philosophy invention and

proposition testing in on research study (Malina et al., 2011; Regnault et al., 2018)

17
3.3 Location of the research problem

This research study focused on Uganda Revenue Authority office in Nakawa. The study targeted

the collecting departments of Customs, VAT and Income Tax because it is from this place where

the investigators expected to obtain all the data relating to tax collections in Uganda and Nakawa

in particular. Therefore, information obtained from this organization was used in generalization

of contribution of electronic tax payment system on revenue collection in Uganda.

3.4 Research methodology

The study used both qualitative and quantitative methods to examine the underlying factors and

issues around revenue collection. Both quantitative and qualitative information was integrated in

an iterative manner that unearths the factors underlying the observed trends, thereby ensuring

findings are credible and recommendations plausible and realistic.

3.5 Population of study

Study participants were 144; targeting 48 URA employees and 96 taxpayers who were found at

their places of abode. A tax register was also used to select taxpayers to constitute the sample

size

3.6 Sample size and selection

In selecting the sample size of the research, URA employees were selected using purposive

sampling and this type of sampling helps to choose a respondent where prior knowledge about

him/ her is known and is believed to have expert knowledge on the study topic. Modest

chance/random selection was employed to choose taxpayers to constitute the sample size and this

18
allowed selection of a respondent by chance and helps to eliminate bias. The researchers used

Morgan and Krejcie (1970)’s table to select the sample size from each category (see appendix 1)

3.7 Sampling techniques

The selection of taxpayers was through simple random sampling because the method allows

equal chances of respondents to be selected and thereby eliminating bias in the final results and

purposeful selection procedure was employed to obtain participants from URA employees

because these are believed to have excellent knowledge and would provide rich information

about the study objectives

Table 1 Sample size selection

Class Target population Sample size Sampling technique

URA employees 48 44 Purposive

Taxpayers 96 76 Morgan table

Total 144 120

3.8 Methods of data collection

The sections illustrated information acquisition techniques that were deployed by the

investigation, and these included questionnaire survey and interview methods as explained in

succeeding subsections.

19
3.8.1 Questionnaire survey

Survey method deals with information acquisition by interviewing and posing questions

respondents who are believed to possess required information about the study (Glasow, 2005;

Mathers et al., 2009). This was the main method for collecting data from taxpayers. The

questions used under this method have predetermined answers to study the relationship between

electronic tax systems and revenue collection, to determine the association between mobile

payments and revenue collection and to explore connection amidst revenue collection and online

TIN registration. This method was instituted to achieve quantitative data

3.8.2 Interview method

This is qualitative study methodology that employs open ended questions to gain understanding

of the research topic. The technique was used to get data from URA employees because these are

believed to have excellent knowledge and provided rich information about the study objectives.

This helped in collecting in-depth qualitative data on the study objectives.

3.9 Instruments of data collection

For each of the data collection methods, there is a corresponding data collection instrument. The

section therefore describes the data collection tools that were instituted during the process of

acquiring data.

3.9.1 Questionnaire

This is quantitative investigating tool compose of multiple closed ended queries to gather data

from target participants of the study. The need for quantitative data shall also prompt the

20
researchers to use the questionnaire. The closed ended questions in this survey questionnaire in

appendix A, were structured in that part A was the consent section, Part B the socio-

demographic characteristics of participants, parts C, D and E presented questions on 1 st, 2nd and

the 3rd study objectives respectively. The questionnaire responses were based on a Likert scale

that is (SA-Strongly Agree A-agree, NS-not sure, D-disagree and SD-strongly disagree). These

was scored 5 for strongly agree to 1 for strongly disagree respectively.

3.9.2 Interview guide

This consisted of a list of questions in Appendix II that were used to gain information regarding

the study objectives. This face-to-face guide was deployed to gather information from each of

the respondents. When the respondents started providing information, the researchers probed

them depending on the flow of the discussion and helped in eliciting in-depth qualitative data

about the objectives that were under investigation

3.10 Data quality

The quality of data means general usefulness of a dataset as a purpose of its capacity to be

simply treated and examined for additional functions, normally by a databank, figures hayloft,

or data analytics system (Cai & Zhu, 2015; Scannapieco et al., 2005; Sidi et al., 2012). There are

majorly two methods for which data quality is assessed and that is dependability and cogency.

3.10.1 Reliability of Instruments

To ensure the reliability for instruments, the researchers used test/ re-test method by giving an

instrument to a group and then giving it to the same group after a week and comparing the scores

(Mohajan, 2017). When scores become highly correlated with critical values, the instruments

21
were declared reliable (Bonett & Wright, 2017). Cronbach alpha value was used to decide the

reliability of the questionnaire.  Cronbach alpha values were described as excellent at 0.94 to

0.11 as low according to (Taber, 2018). Acceptable range for the Cronbach Alpha coefficients

that confirm reliability for this study ranged between 0.70-0.94.

Table 1 Reliability of research instruments

Variable Number of items Cronbach Alpha coefficient

ICTSs 7 0.802

Mobile tax payment systems 7 0.767

TIN registration 7 0.796

Revenue collection 2 0.810

Overall reliability 0.794

Source: Survey Data (2021)

The table indicates that all the variables are at an alpha level of 0.700 and above, which is a good

indication of reliable research instrument. The highest was revenue collection at 0.810 and the

overall reliability was 0.794 which is above the critical value of 0.700. Therefore the research

questionnaire was highly reliable

.10.2 Validity of Instruments

The grade to which statements in the instrument indicates the gratified world for tool the

decision for validity (Taherdoost, 2017). To establish the validity of the questionnaires, they was

reviewed by the assigned supervisors and then taken to an expert in the field of monitoring and

rank the relevance of each of the queries in the tool to objectives of the study (Simões et al.,

2018). The supervisors and the expert made suggestions towards improvement of the clarity of

22
the instruments and that clarity was implemented. The interview guide was constructed as a

replica of the questionnaire, and so it was assumed to be as valid as the questionnaire. The tools’

CVI of 0.7 is in acceptable ranges and the CVI was 0.89

3.11 Research process procedure

Subsequent to a fruitful proposal presentation, questionnaires and interview guide tools which

had been designed and approved by the research supervisor, the researchers obtained a letter

from department of research institute of taxation introducing them to the heads of the study

organization (URA) to gain access to the study participants for data collection. The researchers

then proceeded to make contacts to book the participants to be interviewed. The research

materials were brought followed by the preparation of the investigation aides, and facts gathering

was launched.

3.12 Data Analysis

This is a course of analytically using arithmetical methods to define and exemplify, summarize

and outline data. This procedure involved two major methodologies and described in subsequent

subsections.

3.12.1 Qualitative data

This analysis procedure included the non-numeric data summarization from notes and interview

transcripts. This was done using Nvivo 12 software where coding was done using the software,

major themes, patterns, and relationships from the coded information was identified and finally

data summarized by linking findings to the study objectives. Eventually, the researchers

23
deployed the narrative technique to analyze qualitative data from interviews (Akinsanya & Bach,

2014; Breheny & Stephens, 2015).

3.12.2 Quantitative data

This involved analysis of numeric data. Computer software SPSS was used, and data was

analyzed at two levels that is Univariate and bivariate. At Univariate level, background

characteristics which include marital status, respondent age, sex among others were analyzed and

presented using frequency distribution of respondents by tables. Measures of central tendency

were used such as mean and standard deviation on likert scale data according to (Sullivan &

Artino, 2013)

3.13 Measurement of variables

Study parameter relating to research objectives were based on a five-point Likert scale. Likert

scale data ranged from 5 to 1, where 5 indicates ‘strongly agree’ 4 agree, 3 neutral, 2 disagree

and, 1 strongly disagree (Joshi et al., 2015; Sandiford & Ap, 2013).

3.15 Ethical considerations

Informed consent: The researchers explained themselves and the purpose of the study to the
study participants within the broader context of the research study. In doing so, the researchers
were truthful and straightforward about the study objectives and the anticipated benefits and
risks to the individual participant and the selected large scale retailer organisations

Confidentiality: The researcher also assured the participants that what they say will be kept in
confidence in order to earn their trust and thus for eliciting good data. At the same time, the
researchers protected the participants’ privacy by not disclosing personal characteristics

24
Objectivity: This was incorporated into the research whereby the researchers did not get
emotionally involved with the respondents. This was done to obtain in-depth information from
respondents and to reduce bias in reporting.

Anonymity. This was incorporated into the research and this means that there is no way for
anyone (including the researcher) to personally identify participants in the study. This also means
that any study conducted face-to-face or over the phone was not considered anonymous; this
ruled out virtually all qualitative research that involved interviews.

Anti-plagiarism. The researchers made sure that all the work presented is original and had never

been presented by any other researcher and where related information from other researcher was

used it was acknowledged by cross referencing.

25
 CHAPTER FOUR

PRESENTATION OF FINDINGS, INTERPRETATION AND DISCUSSION

4.1 Introduction

This chapter presents, makes interpretation and discusses the findings of the study along the

demographic characteristics of respondents and the specific objectives of the study which were: -

1) to assess the relationship between ICT, use and revenue collection at Uganda revenue

authority (URA) at Nakawa head offices,

2) to establish the relationship between mobile tax payment system and revenue collection in

URA Nakawa head offices, and

3) to determine the relationship between online tax identification number registration and

revenue collection in URA at Nakawa head offices. The study intended to interview 120

respondents but only 101 respondents were got

4.2 Demographic characteristics of respondents

This section presents findings on demographics of the respondents namely:- gender, age,

education level and working. The results are presented in table 4.2 below:- Majority of the

respondents were males 65.3% and the least were females 34.7%. A great number 61.4% was

aged 31.43 years and the least number 15.8% aged 44 and above. Most 67.3% had bachelor’s

degree while the least 11.9% had secondary education. Majority of the respondents had worked

at URA for 6-10 years while the least 15.8% had worked for >10 years in URA.

Table 4.2 demographic characteristics of respondents

Gender Frequency (N) Valid Percent (%)

Male 66 65.3
Female 35 34.7

26
Age
18-30 16 15.8
31-43 62 61.4
44&above 24 23.8

Education Level
Secondary 12 11.9
Bachelors degree 68 67.3
Postgraduate 21 20.8

Working experience
1-5 years 23 22.8
6-10 years 62 61.4
>10 years 16 15.8
Total 101 100.0
Source: Field data 2021

Table 4.2 reveals that a greater proportion 65.3% of the respondents was males while females

were 34.7%. This means that URA employs more males than females and implying that there is

gender imbalance in the institution. This contradicts the gender emancipation agenda in Uganda

which calls for gender parity in government sectors of the economy (Magezi, 2018).

The table further reveals that a great number 61.4% of the respondents was aged 31-43 years and

the least number 15.8% aged 44 years and above. This means that most of the employees in this

institution are mature and likely to easily adapt and adopt to the use new technologies like

electronic tax subsystem for the enhancing of performance of the institution.

A big number 67.3% of respondents in Table 4.2 had bachelors’ degree as the highest level of

education while the least 11.9% had secondary education. This implies that URA staff is highly

qualified and can have the ability to adopt and learn new tax administration and collection

technologies. This means that most of the employees in URA are highly educated and are likely

to be competent in innovating and implementing administration systems that enhance revenue

27
collection. This is in line with the URA policy intent in URA statute, 1991, that created the

URA to hire the most competent and self motivated staff to administer revenue collection (URA,

Statue,1991) as for the 11.9% who said they had secondary education , it suggests that they

could be those among support staff.

Lastly as indicated in Table 4.2, majority of the respondents 61.4 had worked with URA for at

least 6-10 years while the least 15.8% had worked for >10 years. This indicates that URA

employees have enough experience to administer tax collection technologies for increased

revenue collection

4.3 Relationship between ICT use and revenue collection at Uganda revenue authority

(URA) at Nakawa head offices

The first objective of this study was to assess the relationship between ICT, use and revenue

collection at Uganda revenue authority (URA) at Nakawa head offices. The respondents were

asked to state their level of agreement to the statements about ICT and revenue collection. the

findings are presented in table 4.3 below:-

Table 4.3 descriptive statistics on the relationship between ICT use and revenue collection
at Uganda revenue authority (URA) at Nakawa head offices

28
 N Minim Maxi Mean Std.
um mum Deviati
on
ICT enables URA to improve on delivery
101 1.00 5.00 2.6337 1.25477
of services to taxpayers.
The use of ICTs have improved on
taxpayer’s trust in the URA tax 101 1.00 5.00 3.4554 .99524
administration
ICT technologies have increased the
101 1.00 5.00 3.8713 1.27799
efficiency of revenue collection
Electronic tax filing systems increase the
quantity of information available to tax 101 1.00 4.00 2.0000 .98995
officers
Tax returns filed electronically have
101 1.00 5.00 2.1980 1.17490
much lower error rates than paper returns
Electronic filing lowers the cost of
101 1.00 5.00 3.7426 1.21370
handling returns
Electronic tax system checks on
101 1.00 5.00 3.9010 1.37481
corruption at the URA.
Tax returns filed electronically have
101 1.00 5.00 2.5248 1.32359
much lower error rates than paper returns

and according to the scale devised by Sullivan

& Artino, (2013)
Findings in table 4.3 reveal that respondents disagreed that Electronic tax filing systems increase

the quantity of information available to tax officers evidenced by a lower mean value of 2.0000

according to scale devised by (Sullivan & Artino, 2013). This means electronic tax filing system

has nothing to do with revenue collection as opposed to the study conducted by GSMA, (2020)

that revealed that electronic tax filing systems increase the quality and quantity of information

available to tax officers, enabling them to collect more revenue. Mayega’s assessment identified

a number of data quality gaps that exist in URA tax return information that included; (a) high

proportions of incomplete returns and/or returns with inaccurate/wrong information, especially

with regard to identification details such as taxpayer identification numbers (TINs), names and

29
business locations; (b) a number of returns with inconsistent information; (c) a sizeable number

of returns amended, with some returns amended several times

Furthermore respondents also disagreed that tax returns filed electronically have much lower

error rates than paper returns evidenced by a lower mean value of 2.1980. This suggests that

electronic tax returns filing does not solve error which is in disagreement with the study

conducted by Mudiri, (2019) who revealed that electronic tax returns filing reduces errors than

paper filing.

From the table, it is revealed that respondents agreed that ICT enables URA to improve on

delivery of services to taxpayers evidenced by a high mean value of 2.6337. This implies that

URA staff should enhance the use of ICTs to increase revenue collection. This is in agreement

with (Agbesi, 2019) who argued that the leveraging of ICT for the modernization of public

administration and service delivery is receiving increased attention from governments and donor

agencies to minimize the time, cost and resources to deliver taxpayer services, which has led to

enhanced convenience, transparency and trust in the public service

Furthermore table 4.3 shows that the respondents agreed that the use of ICTs have improved on

taxpayer’s trust in the URA tax administration 3.4554, suggesting that ICT boosts the morale of

taxpayers to pay taxes. This view is in line with studies that indicate that conducive

administration styles involving good systems can motivate people and encourage them to change

attitude towards compliance Andema & Haas, (2017) and Mallick (2021)

Regarding efficiency , it is revealed in table 4.3 that ICT technologies have increased the

efficiency of revenue collection mean 3.8713, Electronic filing lowers the cost of handling

returns mean 3.7426, Electronic tax system checks on corruption at the URA mean and Tax

30
returns filed electronically have much lower error rates than paper returns mean 2.5248. All these

construct were agreed upon by respondents according to scale devised by (Sullivan & Artino,

2013). The findings of this study are in agreement with a study conducted in Tanzania (Kimea,

2019) that revealed that electronic filing systems were preferred by tax payers because they

speed up the process and saves money and time, however these were noted with problems such

as risk, social influence and performance expectancy. Also in agreement with Mayega et al.,

(2021) it has been indicated that through electronic tax filing system, URA is collecting large

amounts of data on individuals and firms in the course of administering taxation and this data is

indeed a strategic asset as it can be used for improving tax compliance.

All in all, these findings suggest that the respondents were in agreement that ICT enhances

efficiency in revenue collection through reducing time and costs of filing returns, checking on

corruption, lowers errors, improved tax trust of the URA and ultimately promotes revenue

collection.

“During the interview with a tax officer who had worked with URA for more than 10

years it was narrated that; ICTS especially the use of internet aided by computers have

helped us track tax payers tax payment histories which helps us to levy and detect

defaulters”

4.3.1 Linear regression relationship between ICT use and revenue collection at Uganda
revenue authority (URA) at Nakawa head offices

The findings presented in table 4.3 were further analysed using linear regression as presented in

table 4.3.1 below:-

Table 4.2.1 Linear regression Relationship between ICT use and revenue collection at
Uganda revenue authority (URA) at Nakawa head offices

31
Variables Unstandardized Standardize T Sig.
Coefficients d
Coefficients
B Std. Error Beta
(Constant) 1.427 .363 3.926 .000
ICT enables URA to
improve on delivery of .510 .064 1.407 7.927 .000
services to taxpayers.
The use of ICTs have
improved on taxpayer’s
.066 .044 .147 1.483 .142
trust in the URA tax
administration
ICT technologies have
increased the efficiency -.088 .043 -.253 -2.050 .043
of revenue collection
Electronic tax filing
systems increase the
.110 .064 .230 1.712 .090
quantity of information
available to tax officers
Tax returns filed
electronically have
-.198 .055 -.522 -3.617 .000
much lower error rates
than paper returns
Electronic filing lowers
the cost of handling -.041 .028 -.135 -1.471 .145
returns
Electronic tax system
checks on corruption at -.160 .040 -.651 -3.956 .000
the URA.
Tax returns filed
electronically have
-.069 .037 -.181 -1.843 .068
much lower error rates
than paper returns
Adj R-Square=0.385, P=0.000, Coeff=1.427 and Obs=101

Source: Primary data, 2021

Findings in Table 4.3.1 indicate that the use of ICTs significantly affected revenue collection in

terms of ICTs capacity improve on delivery of services to taxpayers (P=0.000), ICT technologies

capacity to increase the efficiency of revenue collection (P=.043) and electronic system capacity

to checks on corruption at the URA (P=0.000). the study findings are in agreement with the study

32
conducted in Kenya by Otieno et al., (2013) that indicated that there is a relationship between

Information Systems and both efficiency and effectiveness in revenue collection, there is a strong

positive relationship between Internal Control Systems and revenue collection as reported by

97% of the respondents, and that resistance to change by the council staff was derailing the full

implementation of Information Systems Details are indicated in Table 4.3.1. Furthermore the

strength of the model was confirmed by overall P=0.000 and the independent variables included

in the model were able to explain the dependent variable (revenue collection) by 38.5% since the

value of R-square was equal to 0.385. In a nutshell, the linear analysis shows that the use of ICT

at the URA significantly affects revenue collection at the URA.

4.4 Relationship between mobile tax payment system and revenue collection in URA
Nakawa head offices

The second objective of the study was to establish the relationship between mobile tax payment

system and revenue collection in URA Nakawa head offices. Since all data collected on the study

objectives is likert scale data, result presentation was preceded by descriptive statistics as

illustrated in the table 4.4 below:-

Table 4.5 Descriptive statistics on relationship between mobile tax payment system and
revenue collection in URA Nakawa head offices

33
Constructs N Minimu Maximu Mean Std.
m m Deviatio
n
Mobile money payments have
10 2.108
enhanced payments of taxes in 1.00 4.00 1.13050
1 9
installments.
Mobile money payments have
10
reduced taxpayers’ costs of paying 1.00 5.00 2.256 1.28078
1
taxes
Mobile money has improved on 10 1.623
1.00 5.00 .87007
the timely payments of taxes 1 8
Tax revenue authorities that allow
tax payments to be made using 10 2.495
1.00 5.00 1.57241
mobile money report higher 1 0
revenue collection
Mobile money tax payments have 10 2.861
1.00 5.00 1.34929
resulted in less tax avoidance 1 4
It’s possible that government
10 3.217
adoption of mobile payments 1.00 5.00 1.55309
1 8
could expand its tax base
Mobile money payments have 10 3.475
1.00 5.00 1.52705
increased on revenue collection 1 2

Source: Primary data, 2021

and according to the scale devised by Sullivan &

Artino, (2013)
Findings in table 4.4 show that Respondents disagreed about the following mobile tax payment

systems capacity to enhance revenue collection; mobile money payments ability to enhance

payments of taxes in installments mean 2.1089, the ability of mobile money payments to reduce

taxpayers’ costs of paying taxes mean 2.256, ability of mobile money to improved on the timely

payments of taxes mean 1.6238 and mobile money use aiding in higher revenue collection mean

2.4950. This implies that mobile money payment system has done less in enhancing revenue

collection at URA. These findings were in agreement with the study conducted by (Otieno et al.,

2013) that indicted that the average annual rate of growth of sales tax in these states was only

10.94%, which increased to 18.68% after five years of the introduction of VAT. It clearly shows
34
that VAT has been a revenue raiser for the states. Not only the broadening of the tax base, but

also other factors such as increased administration, efficiency resulting from the use of

information and communication (ICT) and the self-policing features of VAT seem to have

contributed to the higher efficiency of VAT. These were disagreed about helping in revenue

collection because their mean responses lied into the scale of disagree as described by (Sullivan

& Artino, 2013; Warmbrod, 2014).

However the respondents agreed that Mobile money tax payments have resulted in less tax

avoidance mean 2.8614. This means that mobile money prevents URA to collect tax easily to tax

payers who would dodge payments due to lack of easy to use payment platforms. This finding is

in agreement with the study conducted by Mallick (2021) who revealed that Mauritius reported a

12% increase in tax revenues in 2018 after mobile payment facilities were adopted, and in

Tanzania, adoption of mobile money tax payments resulted in less tax avoidance, with users who

had no history of paying taxes starting to pay property and personal income taxes for the first

time (Ayoki, 2017). Findings also indicated that that government adoption of mobile payments

could expand its tax base mean 3.2178 which is in agreement with (Jacobs, 2013) who indicated

that it is possible that government adoption of mobile payments could expand their tax base.

Finally results indicated that mobile money payments have increased on revenue collection mean

3.4752 which concurs with (Almalki, 2016) who revealed that with mobile money payments, tax

payers can pay any time anywhere which increases revenue collection

In an interview with one of the 45 year employee in the domestic taxes department it was

narrated as follows;

35
 “during the ancient times when there was no mobile money systems, tax payers could

delay payments because they had to first travel to get a bank and pay but as of recent

with the introduction of use of mobile money to pay taxes we always hit target early

because tax payers can pay from their phones”

Therefore in nutshell, it can be concluded that mobile money payments have increased the

amount of tax collected in a short period of time

4.5.1 Linear regression model on the relationship between mobile tax payment system and
revenue collection in URA Nakawa head offices

Table 4.4 findings were subjected to linear relations analysis presented in table 4.4.1 below:-

Linear regression model on the relationship between mobile tax payment system and revenue
collection in URA Nakawa head offices

Constructs Unstandardized Standardize t Sig.

Coefficients d
Coefficients
B Std. Beta
Erro
r
(Constant) 5.70 .00
1.487 .261
7 0
Mobile money payments have enhanced .83
-.011 .051 -.027 -.208
payments of taxes in installments. 5
Mobile money payments have reduced .92
.005 .052 .014 .096
taxpayers’ costs of paying taxes 4
Mobile money has improved on the .62
-.029 .058 -.056 -.494
timely payments of taxes 2
Tax revenue authorities that allow tax
.94
payments to be made using mobile .002 .034 .008 .065
8
money report higher revenue collection
Mobile money tax payments have 2.25 .02
-.094 .042 -.286
resulted in less tax avoidance 4 7
It’s possible that government adoption
.53
of mobile payments could expand its tax .032 .051 .112 .622
5
base
Mobile money payments have increased .99
.000 .046 .000 -.003
on revenue collection 8

36
 Adj R-Square=0.021, P=0.256, Coeff=1.487and Obs=101

Source: Primary data

As indicated in table 4.4.1 most of the mobile money construct and their use in revenue

collection were insignificant except on only their use in reducing tax avoidance (P=0.027). The

overall P was higher than tabulated P-value indicating that overall mobile money system does

not significantly impact revenue collection (P=0.256). The value of adjusted R-square is also low

at 0.021 indicating that the independent variables included in the equation explained only 2.1%

of the dependent variable (revenue collection). This implies that the use of mobile money has a

weak relationship with revenue collection at URA. These findings are in disagreement with a

study conducted by (Jimenez et al., 2013a) who revealed that mobile money payments increased

revenue collection in Mauritius

4.5 Relationship between online tax identification number registration and revenue
collection in URA at Nakawa head offices

The last objective of the study was to determine the relationship between online tax identification

number registration and revenue collection in URA at Nakawa head offices. Respondents were

asked to rate the level of their agreement to the statements on the relationship between online tax

identification number registration and revenue collection in URA at Nakawa head offices. The

findings are presented in table 4.5 below:-

Table 4.6 Descriptive statistics on the relationship between online tax identification number
registration and revenue collection in URA at Nakawa head offices

37
 Constructs N Minimu Maximu Mean Std.
m m Deviatio
n
E tax TIN registration helps tax
10 3.861
administrators to know who its 1.00 5.00 1.27303
1 4
taxpayers are.
E tax TIN registration enhances tax
administrators’ ability to know 10 2.386
1.00 5.00 1.50977
where there the tax payers are 1 1
located
E tax TIN registrations improves on 10 2.277
1.00 5.00 1.28933
the quality of taxpayer information 1 2
E tax registration details ease the
10 2.703
compliance checks on registered 1.00 5.00 1.51357
1 0
taxpayer
E TINs improve on the collection of 10 2.089
1.00 5.00 1.27357
third-party information for audits 1 1
E tax TIN registration helps to 10 3.861
1.00 5.00 1.24121
reduce cases of tax avoidance 1 4
TIN registration enables proper
10 4.237
planning in the allocation of URA 1.00 5.00 .86196
1 6
staff per tax population.
Adj R-Square=0.421, P=0.043, Coeff=3.487and Obs=101
Source: Primary data

It is revealed in table 4.5 that E tax TIN registration enhancing tax administrators’ ability to

know where there the tax payers are located mean 2.3861. This means that ICTS like internet,

GPS can do not help enforcement officers to track and know where the tax payers are located

and this is in disagreement with findings of the study conducted by (Ayoki, 2017) who found

out that TIN registration is necessary for tax payer identification. E tax TIN registrations

improving on the quality of taxpayer information mean 2.2772 which is in disagreement with

Namusonge (2018) who revealed that TIN registrations improve tax payer information access.

Finally it was revealed that E TINs improve on the collection of third-party information for

audits mean 2.0891 which contradicts with (Kikonyogo, 2020) who indicated that E TIN

registration helps to identify next of kin of tax payers. It can be argued that E TIN registration

38
improves revenue collection at URA to a lesser extent. These were reported to be disagreed

upon because their mean values are in the disagreed scale as described by (Sullivan & Artino,

2013; Warmbrod, 2014). These were agreed to impact revenue collection; E tax TIN registration

helping tax administrators to know who its taxpayers are mean 3.8614, E tax TIN registration

helping to reduce cases of tax avoidance mean 2.8614, It’s possible that government adoption of

mobile payments could expand its tax base mean 3.2178 and TIN registration enabling proper

planning in the allocation of URA staff per tax population. All these findings are in agreement

with Ayoki, (2017) and Namusonge (2018) who revealed that TIN registrations improve tax

administration practices

“In an interview with one of the tax officers at URA, it was narrated that; TIN is the first

requirement for any tax payer and having this TIN we are able to levy taxes to newly

recruited tax payers”

It is therefore concluded that TIN registrations is very crucial in revenue collection and tax

administration at Uganda revenue authority

4.5.1 Linear regression on the effect of relationship between online tax identification
number registration and revenue collection in URA at Nakawa head offices

A linear regression analysis was performed on the descriptive statistics presented in table 4.5,

are presented in table 4.5.1 below:-

Table 4.6.1 Linear regression on the effect of relationship between online tax identification
number registration and revenue collection in URA at Nakawa head offices

Statements Unstandardized Standardize t Sig

Coefficients d .
Coefficients
B Std. Error Beta

39
 (Constant) 1.91 .05
.782 .408
7 8
E tax TIN registration helps tax
.76
administrators to know who its -.013 .042 -.036 -.300
4
taxpayers are.
E tax TIN registration enhances tax
administrators’ ability to know .01
-.931 .436 -.307 -.862
where there the tax payers are 91
located
E tax TIN registrations improves
.38
on the quality of taxpayer .032 .036 .092 .875
4
information
E tax registration details ease the
1.14 .25
compliance checks on registered .037 .033 .127
1 7
taxpayer
E TINs improve on the collection
.80
of third-party information for -.012 .045 -.033 -.254
0
audits
E tax TIN registration helps to .03
.722 .046 .062 .476
reduce cases of tax avoidance 5
TIN registration enables proper
1.48 .14
planning in the allocation of URA .088 .059 .171
7 1
staff per tax population.
Adj R-Square=0.121, P=0.143, Coeff=.782and Obs=101
Source: Primary data

According to table 4.5.1 only two statements of online tax identification had a significant impact

on revenue collection and these are; E tax TIN registration enhancing tax administrators’ ability

to know where there the tax payers are located (P=0.0191) and E tax TIN registration helping to

reduce cases of tax avoidance (P=.035. The overall probability is insignificant and this indicates

that online tax identification does not impact revenue collection. The value of adjusted R-square

is 0.121 indicating that the independent variables included in the model explained only 12.1% of

the dependent variable and therefore the model is not a good fit. Therefore, electronic TIN

registration has a minimal impact on revenue collection at URA

40
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Introduction

This chapter gives a summary, conclusion and recommendations of the main findings in relation
to the stated objectives and results obtained from chapter four

5.2 Summary of Findings

The summary of findings is based on the objectives of the study which were:-

1) to assess the relationship between ICT, use and revenue collection at Uganda revenue
authority (URA) at Nakawa head offices,

2) to establish the relationship between mobile tax payment system and revenue collection in
URA Nakawa head offices, and

3) to determine the relationship between online tax identification number registration and
revenue collection in URA at Nakawa head offices.

5.2.1 Relationship between ICT and Revenue Collection at URA

The study found that there is a positive relationship between ICT and revenue collection at the
URA. This is adduced by most of the respondents who were in agreement that ICT enhances
efficiency in revenue collection through reducing time and costs of filing returns, checking on
corruption, lowering errors, improving tax trust of the URA and ultimately promoting revenue
collection. The linear regression analysis confirmed a significant relationship between the use of
ICT and revenue collection at URA

5.2.2 Relationship between use of mobile money and revenue collection in Uganda.......

The findings of the regression analysis and descriptive statistics, show that the use of mobile has
a minimal impact on revenue collection at URA

41
5.2.3 Effects of online TIN registration on revenue collection

The findings of the study revealed that online TIN registration has a minimal impact on revenue
collection at URA

5.3 Conclusions

The conclusions are in line with the study objectives. The first objective of the study aimed to

examine the relationship between ICT use and revenue collection at Uganda revenue authority

(URA) at Nakawa head offices. The findings indicated that respondents agreed that ICT enables

URA to improve on delivery of services to taxpayers evidenced by a high mean value of 2.6337,

furthermore it was agreed that the use of ICTs have improved on taxpayer’s trust in the URA tax

administration 3.4554, ICT technologies have increased the efficiency of revenue collection

mean 3.8713, Electronic filing lowers the cost of handling returns mean 3.7426, Electronic tax

system checks on corruption at the URA mean and Tax returns filed electronically have much

lower error rates than paper returns mean 2.5248. Linear regression model results further

indicated that ICTs significantly impact on revenue collection evidence by a significant P=0.000

and the independent variables included in the model explained the dependent variable (revenue

collection) by 38.5% since the value of R-square was equal to 0.385. It is therefore logical to

conclude that the use of ICT has a significant impact on revenue collection at URA

The second objective of the study sought to evaluate the relationship between mobile tax

payment system and revenue collection in URA Nakawa head offices. The study findings

indicated that Mobile money tax payments have resulted in less tax avoidance mean 2.8614m,

mobile payments could expand its tax base mean 3.2178 and mobile money payments have

increased on revenue collection mean 3.4752. Regression results indicted indicated that mobile

money payments minimally impacted revenue collection in URA evidenced by a low (P=0.256).

42
The value of adjusted R-square is also low at 0.021 indicating that the independent variables

included in the equation explained only 2.1% of the dependent variable (revenue collection).

Therefore the study concludes that mobile money tax payments have a weak relationship with

revenue collection at URA

The third objective aimed to establish the relationship between online tax identification number

registration and revenue collection in URA at Nakawa head offices. Findings indicated that E tax

TIN registration helps tax administrators to know who its taxpayers are mean 3.8614, E tax TIN

registration helps to reduce cases of tax avoidance mean 2.8614, helps the government to expand

its tax base mean 3.2178 and TIN registration enables proper planning in the allocation of URA

staff per tax population. Regression results however indicated a non significant impact on online

TIN and revenue collection of URA. The study concludes that online TIN registration system has

a minimal impact on revenue collection at URA

5.4 Recommendations

Considering the findings and conclusions of the study, the researchers make the following

recommendations:-

The government should devise other methods expanding its revenue base and stopping injecting

too much money and time streamlining the TIN registration status since the findings has

indicated that online TIN registration has minimal impact on revenue collection

The government should invest much in ICTs since they have been found to be significantly

related to revenue collection. ICTs were found to significantly influence taxpayer’s trust in the

URA tax administration, increased the efficiency of revenue collection, lowering the cost of

handling returns and checking on corruption at the URA

43
Further study should be conducted covering all branches of URA country wide to generate

reliable data that in turn generate unbiased results due to enough data collected

44
 REFERENCES

Agbesi. (2019). Driver and Barriers of ICT Adoption in Revenue Collection in Ghana: A Case of

Accra Metropolitan Assembly. 30th European Conference of the International

Telecommunications Society (ITS): “Towards a Connected and Automated Society”,

Helsinki, Finland, 78–91.

Akinsanya, A., & Bach, P. C. (2014). Narrative Analysis: The Personal Experience Narrative

Approach. ASEE 2014 Zone I Conference, April 3-5, 2014, University of Bridgeport,

Bridgpeort, CT, USA., 95–112.

Alasmari, N. (2020). Mixed Methods Research: An Overview. International Journal of Social

Science and Human Research, 03(09). https://doi.org/10.47191/ijsshr/v3-i9-04

Ali, M., Shifa, A. B., Shimeles, A., & Woldeyes, F. (2017). Building Fiscal Capacity: The Role

of ICT. Working Paper Series African Development Bank, Abidjan, Côte d’Ivoir, 290.

Allahverdi, M., & Ortakarpuz, M. (2017). The Effect of E-taxation System on Tax Revenues and

Costs: Turkey Case The Effect Of E-Taxation System on Tax Revenues And Costs: Turkey

Case. International Conference on Accounting Studies (ICAS) 2017 18-20 September 2017,

Putrajaya, Malaysia, 8, 123–142.

Almalki, S. (2016). Integrating Quantitative and Qualitative Data in Mixed Methods Research—

Challenges and Benefits. Journal of Education and Learning, 5(3), 288.

https://doi.org/10.5539/jel.v5n3p288

Andema, F., & Haas, A. R. N. (2017). Efficient and effective municipal tax administration: A

case study of the City Authority. October.

45
Ayoki. (2017). Tax Reforms and URARevenue Mobilization in Uganda. Munich Personal

RePEc Archive, 7(80328), 45–55.

Bonett, D. G., & Wright, T. A. (2017). Cronbach’ s alpha reliability: Interval estimation,

hypothesis testing, and sample size planning. Journal of Organizational Behavior ·, 2(10),

67–72. https://doi.org/10.1002/job.1960

Breheny, M., & Stephens, C. (2015). Approaches to Narrative Analysis: Using Personal,

Dialogical and Social Stories to Promote Peace. Approaches to Narrative Analysis, 4(9),

275–291. https://doi.org/10.1007/978-3-319-18395-4_14

Cai, L., & Zhu, Y. (2015). The challenges of data quality and data quality assessment in the big

data era. Data Science Journal, 14, 1–10. https://doi.org/10.5334/dsj-2015-002

Glasow, P. (2005). Fundamentals of Survey Research Methodology.

GSMA. (2020). The causes and consequences of mobile money taxation an examination of

mobile money transaction taxes in sub-Saharan Africa.

Haruna. (2019). Willingness to Use Electronic Revenue Collection System: Moderating Effect of

E-Collection Training on the Extended Technology Acceptance Model. International

Journal of Enterprise Information Systems, 15(4), 78–86.

https://doi.org/10.4018/IJEIS.2019100104

Human Resource Report MoSTI. (2019). Proposed changes on the ministry staff structure (p.

25).

ICTD. (2018). Working Paper 88 The Role of Information Communication Technology to

46
 Enhance Property Tax Revenue in Africa: A Tale of Four Cities in (Issue November).

Jacobs, A. (2013). USAID’ S LEADERSHIP I N PUBLIC FINANCIAL MANAGEMENT Detailed

Guidelines for Improved Tax Administration in Latin America and the Caribbean Detailed

Guidelines for Improved Tax Administration in Latin America and the Caribbean Authors.

Jimenez, G., Mac, N., & Kamenov, A. (2013a). USAID’ S LEADERSHIP IN PUBLIC

FINANCIAL MANAGEMENT Information Technology for Tax Administration

Information Technology for Tax Administration. Deloitte Consulting LLP.

Jimenez, G., Mac, N., & Kamenov, A. (2013b). USAID’ S LEADERSHIP IN PUBLIC

FINANCIAL MANAGEMENT Information Technology for Tax Administration Information

Technology for Tax Administration.

Joshi, A., Kale, S., Chandel, S., & Pal, D. (2015). Likert Scale: Explored and Explained. British

Journal of Applied Science & Technology, 7(4), 396–403.

https://doi.org/10.9734/bjast/2015/14975

Kikonyogo, H. (2020). Property tax compliance in Kampala. Preliminary evidence from

taxpayer. International Growth Center, 5(9), 89–98.

Kituyi, A. W. (2020). Exploring the Use of Mobile Money Services among Tea SACCOs in

Rwanda. Rwanda Mobile Money Report, 3(6), 77–85.

Malina, M. A., Nrreklit, H. S. O., & Selto, F. H. (2011). Lessons learned: Advantages and

disadvantages of mixed method research. Qualitative Research in Accounting and

Management, 8(1), 59–71. https://doi.org/10.1108/11766091111124702

47
Mallick, H. (2021). Do governance quality and ICT infrastructure influence the tax revenue

mobilization: An empirical analysis. In Economic Change and Restructuring (Vol. 54, Issue

2). Springer US. https://doi.org/10.1007/s10644-020-09282-9

Mathers, N., Yh, R. D. S. E. M., Mathers, N., & Fox, N. (2009). Surveys and Questionnaires

Authors. The NIHR Research Design Service for Yorkshire & the Humber.

Mawejje, J., & Munyambonera, E. F. (2016). Tax Revenue Effects of Sectoral Growth and

Public Expenditure in Uganda. Research Series, 10(125), 45–67.

Ministry of Finance Planning and Economic Development. (2019). URARevenue Mobilization

Strategy. 1(10), 1–130.

Mohajan, H. K. (2017). Two Criteria for Good Measurements in Research: Validity and

Reliability. Annals of Spiru Haret University. Economic Series, 17(4), 59–82.

https://doi.org/10.26458/1746

Mudiri. (2019). Fraud in Mobile Financial Services Joseck Luminzu Mudiri Table of Contents. A

Micro Save Publication, 1(8), 55–64.

Namusonge, P. G. (2018). Effects of Automation of Revenue Collection on the Performance of

County Government: A Case Study of Trans Nzoia, County. European Journal of Business

and Management, 10(11), 118–124.

Nisar, T. M. (2020). E-governance in revenue collection and administration. Advances in

Education, Commerce & Governance, 36(265), 265–274. https://doi.org/10.2495/IS060261

Otieno, O. C., Oginda, M., Obura, J. M., Aila, F. O., Ojera, P. B., & Siringi, E. M. (2013). Effect

48
 of Information Systems on Revenue Collection by Local Authorities in Homa Bay County,

Kenya. Universal Journal of Accounting and Finance 1(1):1(1), 29–33.

https://doi.org/10.13189/ujaf.2013.010104

Patnam, M., & Yao, W. (2020). The Real Effects of Mobile Money: Evidence from a Large-

Scale Fintech Expansion. IMF Working Paper, 138(20), 89.

Regnault, A., Willgoss, T., & Barbic, S. (2018). Towards the use of mixed methods inquiry as

best practice in health outcomes research. Journal of Patient-Reported Outcomes, 2, 2–5.

https://doi.org/10.1186/s41687-018-0043-8

Revenue statisitcs. (2017). SPECIAL FEATURE: Electronic services in tax administration. 39–

48.

Sandiford, P. J., & Ap, J. (2013). Important or not? A Critical Discussion of Likert Scales and’

Likert-type’ Scales as Used in Customer Research. 12th Annual CHME Hospitality

Research Conference: Trends and Developments in Hospitality Research, April 10.

Scannapieco, M., Missier, P., & Batini, C. (2005). Data Quality at a Glance. Datenbank-

Spektrum, 14(January), 6–14. http://citeseerx.ist.psu.edu/viewdoc/download?

doi=10.1.1.85.555&rep=rep1&type=pdf

Schober, P., & Boer, C. (2018). Correlation Coefficients: Appropriate Use and Interpretation.

Anesthesia & Analgesia, 126(5), 78–85. https://doi.org/10.1213/ANE.0000000000002864

Sidi, F., Shariat Panahy, P. H., Affendey, L. S., Jabar, M. A., Ibrahim, H., & Mustapha, A.

(2012). Data quality: A survey of data quality dimensions. Proceedings - 2012 International

49
 Conference on Information Retrieval and Knowledge Management, CAMP’12, June 2014,

300–304. https://doi.org/10.1109/InfRKM.2012.6204995

Simões, L., Teixeira-Salmela, L. F., Magalhães, L., Stuge, B., Laurentino, G., Wanderley, E.,

Barros, R., & Lemos, A. (2018). Analysis of Test-Retest Reliability, Construct Validity, and

Internal Consistency of the Brazilian Version of the Pelvic Girdle Questionnaire. Journal of

Manipulative and Physiological Therapeutics, 41(5), 425–433.

https://doi.org/10.1016/j.jmpt.2017.10.008

Simon, M. K. &, & Goes, J. (2013). Scope, limitations, and delimitations. Disser, 2000–2002.

Skotarczak, E., Dobek, A., & Moliński, K. (2019). Comparison of some correlation measures for

continuous and categorical data. Biometrical Letters, 56(2), 253–261.

https://doi.org/10.2478/bile-2019-0015

Taber, K. S. (2018). The Use of Cronbach’ s Alpha When Developing and Reporting Research

Instruments in Science Education. Res Sci Educ, 48(1), 1273–1296.

https://doi.org/10.1007/s11165-016-9602-2

Taherdoost, H. (2017). Validity and Reliability of the Research Instrument; How to Test the

Validation of a Questionnaire / Survey in a Research. International Journal of Academic

Research in Management, 5(3), 28–36. https://doi.org/10.2139/ssrn.3205040

Turhan, N. S. (2020). Karl Pearson’ s chi-square tests. Educational Research and Reviews, 15(9),

575–580. https://doi.org/10.5897/ERR2019.3817

URA. (2020). ANNUAL REVENUE PERFORMANCE REPORT. FY 2019/2020.

50
Urio, F. (2019). TOPIC: The Effect Of Mobile Payment System In Tax Collection In Tanzania

Authors Title Of Topic: Flora Urio. Research Proposal, 2(9), 1003–1009.

https://doi.org/10.13140/RG.2.2.12839.70565

Williams, C., & Marie, J. (2012). Mobile Technology threats and opportunities for taxation and

government payments. E/C.18/2012/CRP.13 Chris, 3(7), 89–98.

Wisdom, J., & Creswell, J. W. (2013). Integrating quantitative and qualitative data collection and

analysis while studying patient-centered medical home models. Agency for Healthcare

Research and Quality, 13-0028-EF, 1–5. https://doi.org/No. 13-0028-EF.

51
Appendix I-Questionnaire

Dear Respondent,

We are students at East African School of Taxation, carrying out research to fulfill the

requirements for the Post Graduate Diploma in Taxation and Revenue Administration award and

the topic is effect of Electronic Tax Systems on Revenue Collection in Uganda. The

questionnaire is designed with a view of collecting reliable data to analyze above variables.

Please assist us by responding to these questions and your response will be treated with highest

level of confidentiality as the research is purely academic.

Section A

1. SEX:

a. Male b. Female

2. Age:

18-30 31-43 44-& above

3. Education level:

No education Primary Secondary Studies University

4. Taxation experience

1- 3 years 4-7 years 7-10 years 10 years above

5. Do you think electronic tax systems impacts on tax collection in URA? (Tick the most

appropriate)
52
a) Yes

b) No

SECTION B: Relationship between ICT use and revenue collection at Uganda revenue

authority (URA) at Nakawa head offices

Please rank the following statement on Likert Scale ranging from agrees to strongly disagree.

Where; 1= Strongly Agree 2= Agree 3= Neutral 4= strongly disagree 5= Disagree

53
Statement 5 4 3 2 1

ICT enables URA to improve on delivery of services to taxpayers.

The use of ICTs have improved on taxpayer’s trust in the URA tax

administration.

ICT technologies have increased the efficiency of revenue collection

Electronic tax filing systems increase the quantity of information available to

tax officers

Tax returns filed electronically have much lower error rates than paper returns

Electronic filing lowers the cost of handling returns

Electronic tax system checks on corruption at the URA.

SECTION B: Relationship between mobile tax payment system and revenue collection

54
Statement 5 4 3 2 1

Mobile money payments have

enhanced payments of taxes in

installments.

Mobile money payments have reduced

taxpayers’ costs of paying taxes

Mobile money has improved on the

timely payments of taxes

Tax revenue authorities that allow tax

payments to be made using mobile

money report higher revenue

collection

Mobile money tax payments have

resulted in less tax avoidance

It’s possible that government adoption

of mobile payments could expand its

tax base

55
SECTION D: Relationship between online tax identification number registration and

revenue collection in URA at Nakawa head offices

56
Statement 5 4 3 2 1

E tax TIN registration helps tax

administrators to know who its

taxpayers are.

E tax TIN registration enhances ta

administrators’ ability to know where

there the tax payers are located

E tax TIN registrations improves on

the quality of taxpayer information

E tax registration details ease the

compliance checks on registered

taxpayers

E TINs improve on the collection of

third-party information for audits

E tax TIN registration helps to reduce

cases of tax avoidance

TIN registration enables proper

57
Appendix II Interview guide

1. How do the following ICTs help you in tax administration?

i. Computer
ii. Internet
iii. Mobile phones

2. How does mobile money system help in revenue collection?

3. How does TIN help in revenue collection?

58
Appendix III: Estimated Budget

ITEM Quantity Rate AMOUT

Proposal 1 45000

Internet-literature review 300,000

Questionnaires 100 100000 100000

Typing and printing 1 30000 30000

Transport and airtime 100000 100000

Stationary 1 46000 46000

Binding 3 30000 30000

Report 1 50000 50000

Miscellaneous 1 100000 100000

Total 801,000

59
60