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Metropolitan Journal of Academic Multidisciplinary Research

The Contribution of Tax Administration Criteria on Financial Performance of Small-Scale Enterprises in Kanungu District

Authors: Jorame Nayebare Kakondere1 , Dr. Veronica Namulondo2

Journal: Metropolitan Journal of Academic Multidisciplinary Research (MJAMR)

Volume/Issue: Volume 5 - Issue 2

Published: 01 Jan 1970


Abstract

The study examined the contribution of tax administration criteria on financial performance of small-scale enterprises (SSEs) in Kanungu District, Uganda. Employing a cross-sectional survey design, data were collected from 160 SSE operators using structured questionnaires and analyzed through descriptive statistics, correlation, and regression analysis. Results indicated that tax administration criteria significantly influenced financial performance (r = 0.712, p < 0.01), explaining 50.7% of variance. Specifically, tax administration simplicity (r = 0.658, p < 0.01), efficiency (r = 0.624, p < 0.01), and fairness (r = 0.593, p < 0.01) all demonstrated positive relationships with financial performance. The study concluded that effective tax administration practices enhanced SSE performance by reducing compliance costs, improving business planning, and facilitating market access. Recommendations included simplifying tax procedures, enhancing service delivery efficiency, ensuring equitable treatment, and establishing taxpayer-friendly support systems to optimize SSE contributions to district economic development.
Keywords

: Tax administration, financial performance, small-scale enterprises, tax compliance, Kanungu District, Uganda

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