Tax administration and revenue collection in Gogonyo sub county, Pallisa district

Abstract

The study examined the effects of tax administration on revenue collection. Tax administration was the independent variable while revenue collection was the dependent variable. The study was guided by the following specific objectives: to establish how institutional capacity affect local revenue collection, to find out the effects of local government tax legislation on revenue collection, to ascertain the effect of tax payer education on revenue collection in Gogonyo Sub-county, Pallisa district. The study involved the use of quantitative research design and cross- sectional survey. Quantitative approach was selected because it allowed the researcher to gather quantitative data to explain the existence of the phenomena, and understand the existence of reality. The cross-sectional research design was used because it enabled data to be collected at a snapshot, that is, at a particular point in time with the view of drawing conclusions about an intrusive population. A total sample of 56 respondents was selected. This consisted of 32 staff, 15 business men and 09 Sub-county councilors from Gogonyo Sub County. Both primary and secondary data sources were used. Close ended questions were used in permitting the respondents to answer questions at an ample time using a questionnaire. The questionnaire was based on a 5- Likert scale. This scale was used to quantify responses of items. The findings confirmed that institutional capacity has a positive and significant effect on revenue collection. The findings further depict that technological capacity is paramount for enhancing revenue collection, the findings seem to suggest that enhancing on revenue collection calls local governments to ensure they employ qualified and competent staff, the findings further depict that tax audit is paramount for enhancing revenue collection. The findings also seem to suggest that enhancing on revenue collection calls local governments to ensure tax enforcement is done on tax payers findings seem to suggest financial penalties acts as a ruse to revenue collection. The findings confirmed that tax payer education has a positive and significant effect on revenue collection. The findings further portray that tax awareness is paramount for enhancing revenue collection. The findings seem to suggest that enhancing on revenue collection calls local governments to ensure they have effective tax education channels that are accessible and understood by the all the tax payers in the community. Also, findings seem to suggest that skilled personnel act as a ruse to revenue collection.