The Effect of Enforcement on Tax Compliance in the Customs Department of Uganda Revenue Authority.
Tobias, Onweng (Supervisor)
Charles, Mbiine Nuwagaba (Workbased)
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The purpose of this study was to assess the effect of Customs enforcement measures on taxpayer compliance in the payment of customs duties. The relationship between independent variables: use of penalties, forfeiture, prosecution, quality of personnel and resources allocation and the dependent variable tax compliance were measured. The study employed a cross-sectional research design using both qualitative and quantitative methods of data collection and analysis based on a sample size of 323 respondents. The findings showed that Customs enforcement measures comprising application of penalties; forfeiture of taxpayers’ goods and prosecution of tax payers enhanced tax compliance although the extent (level) of tax compliance varied from one enforcement variable to another. Tax compliance was further enhanced when the quality of enforcement personnel was high since this increased the likelihood of officers easily detecting and preventing areas of non-compliance. Availability and adequacy of resources also played a role in enhancing tax compliance. The research concluded that Customs Enforcement had a significant effect on tax payer compliance. The recommendations were that URA: should take due consideration in the application of penalties and prosecution since they had minimal impact on tax compliance; should consider increased application of forfeiture; should invest in recruiting and maintaining quality personnel for enforcement work; and should take a very keen interest in taxpayer attitudes and the drivers of taxpayer behavior since attitudes play a very significant role on taxpayer compliance.