THE ROLE OF ICT IN TAX ADMINISTRATION IN UGANDA: A CASE OF UGANDA REVENUE AUTHORITY

Abstract

The study assessed the extent to which ICT influences Tax Administration using the Uganda Revenue Authority as a case study. The objectives of this study were; to assess the effect of general user ICTs on tax administration; to establish the effect of production integrating ICTs on tax administration and too assess the effect of market oriented ICTs on tax administration. It was a cross sectional survey study where quantitative approach was used. The statistical table of Krejcie and Morgan was used in determining the sample size of 86 from a population of 112 respondents. Simple random, purposive and stratified sampling techniques were used to select the study respondents. Questionnaire survey and documentary review methods of data collection were used in the study. It was found out that general user ICTs, production integrating ICTs and market oriented ICTs all had a significant positive influence on Tax Administration. The study therefore concludes that application of ICT plays a significant role in Tax Administration. The study further recommends that ICT use in tax administration should be encouraged and emphasized to ensure compliance; establishment of tax payer management information systems to cater for third party agents; URA should come up with other tax administration strategies that employ the accessible resources to reduce the level of non-compliance and to enhance the chances of detecting and penalize noncompliance. It was further recommended that more studies should be carried out in other departments of the URA and should emphasize assessing other factors that influence tax administration apart from ICT.