EFFECT OF TAX AUDIT AND INVESTIGATION ON TAX EVASION CONTROL IN UGANDA. CASE STUDY OF UGANDA REVENUE AUTHORITY (URA)
Abstract
Tax evasion has always been a challenge in many tax systems across the world and there are various reasoning on tax audit and investigation as a controller to this problem. Build on this, the study examined the effect of tax audit and investigation on tax evasion control in Uganda using case study of Uganda Revenuer Authority (URA). The population of the study was 3000 workers of URA and the targeted population was 239 workers where a sample size of 150 respondents was drone from. The study was guided by three objectives namely; to examine the influence of desk audit on Tax evasion control, to investigate the influence of field audit on Tax evasion control and to determine the effect of tax investigation on tax evasion control. A survey and correlation research design was used in this study and structured questionnaires were used in data collection. The analysis was done using STATA and presentation was done using tables. The results showed that the influence of desk audit on tax evasion control, it was revealed that there is positive correlation between desk audits and tax evasion control with β1=0.323 and P-Value 0.000 which clearly showed that there is a strong association between desk audits and tax evasion control. On investigating the influence of field audit on tax evasion control, it was found that a positive and significant relationship with p-value 0.000 < 0.05, β2=0.185 existed between field audit and tax evasion control. On determining the effect of tax investigation and tax evasion control, it was found that a positive and significant relationship with p-value 0.000 < 0.000, (β3=0.490) existed between tax investigation and tax evasion control. The study recommended that there is need for the URA to look for additional/extra hands-on and effectual means of intensifying the impact of tax audits and investigation on compliance to control tax evasion in Uganda in order to consolidate on government’s revenue.
Key Words: Tax Audit, Tax Investigation, Tax Evasion Control
CITATION: Egau, B., & Mpakaniye, J. P. (2022). Effect of tax audit and investigation on tax evasion control in Uganda. Case study of Uganda Revenue Authority (URA). The Strategic Journal of Business & Change Management, 9 (4), 1678 – 1689.
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DOI: http://dx.doi.org/10.61426/sjbcm.v9i4.2517
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