The Challenges Faced By Uganda Revenue Authority (U.R.A) In Achieving Its Goals

Table of Contents

Page

Title Page ......................................................................................... i

Declaration ..................................................................................... ii

Approval ....................................................................................... iii

Dedication ..................................................................................... .iv

fcknowledgn1ent ............................................................................ v

Table of Contents ............................................................................. vi

List of Acronyn1s ........................................................................... .ix

CHAPTER ONE: INTRODUCTION ........................................................................................................ 1

1.1 Background ............................................................................. 1

1.1.1 Legal and Institutional Frame Work on Taxation in Uganda .............. 3

1.1.2 Specific Legal Frame Work For Taxation In Uganda ......................... 5

1.2 Statement on the Problem ........................................................... 6

1.3 Purpose of the Study ................................................................. 6

1.4 Objectives of the Study .............................................................. 7

1.5 Scope of the Study ..................................................................... 8

1.6 Significance on the Study ............................................................ 8

1.7 Methodology .......................................................................... 9

1.8 Synopsis of the Chapters ............................................................ 9

CHAPTER TOW: LITERATURE REVIEW ............................................. 11

2.1 Introduction ......................................................................... .. 11

2.2 Review of Related literature ...................................................... 11

2.3 Overview ............................................................................... 17

CHAPTER THREE: CHALLENGES FACED BY URA ............................. 19

3.1 Introduction .......................................................................... 19

3.2 Internal Challenges ................................................................. 20

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3.2.1 Corruption ........................................................................... 20

3.2.2 Resources I Manpower .......................................................... 20

3.2.2.1 Number of Employees ......................................................... 21

3.2.2.2 Quantity of Employees ....................................................... 21

3.2.3 Technological Challenges ......................................................... 22

3.3 External Challenges ................................................................ 23

3.3.1 Tax Evasion ........................................................................... 23

3.3.2 Formulation of Poor Tax Policies ................................................ 24

3.3.3 Political Instability ................................................................. 25

3.3.4 Global Factors ........................................................................ 26

3.3.4.1 Political Factors .................................................................. 26

3.3.4.2 Economic Factors ................................................................ 27

3.3.5 Smuggling of Goods ............................................................... 28

3.3.6 Poor Record Keeping by the Citizenry ........................................ 29

3.3.6.1 Lack of Records ................................................................ 29

3.3.6.2 Improper and Unreliable Records .......................................... 29

3.3. 7 Agricultural Based Economy .................................................... 30

3.4 Overvievv ........................................................................... 31

CHAPTER FOUR RECCOMENDATIONS & CONCLUSION ................. 33

4.1 Introduction ........................................................................ 33

4.2 Policy Recommendations ...................................................... 33

4.2.1 Economic Growth and tax efficiency Improvement .................... 33

4.2.2 Simplification of the Tax System ............................................. 34

4.2.3 Simplification of tax administration ........................................ 33

4.2.4 More technical Reviews for the 2009 I 10 tax proposals ................ 34