ABSTRACT
The purpose of the study was to establish the influence of the electronic tax filing system on tax collection and tax compliance following several claims of lack of transparency. inadequate education on tax matters and corruption in the assessment of taxes. The study objectives involved identifying the components of E-tax service system, to identify the reasons for the adoption and the successes attained of E-tax system by URA, to establish the level of Tax Compliance among Ugandan Tax payers and to establish whether electronic tax filing system has reduced tax compliance costs of tax payer's The research was done by employing correlation and cross sectional research designs on a survey population that generally included finance officers who handle tax matters in different companies within Mbarara district. These officers were arrived at using the purposive sampling method while the simple random sampling technique was used to select the various companies where the officers work. Data was collected from existing literature and by use of questionnaires. The data was measured using The Likert Scale and analyzed using SPSS Data Analysis program. This report explains and describes the E-tax services adopted by URA and how best it can he used by the taxpayers and the URA officials. It gives the reasons for the slow adoption of E-ta:-. services, successes achieved and the reasons for the adoption of E-tax service systems. It also includes the different findings discussed and interpreted as the results were received there giving the real view of the respondents toward the area of study. This report goes ahead to give the recommendation which can be implemented by URA to better improve the compliance of the E-tax service systems and also gives conclusions after analyzing the finding which 1vere given to the researcher when carrying out the study. This report was written basing on the information and practical skills acquired in the field and the guidance provided by the supervisor Mr. Masembe Muzamil which highlighted all the requirements of this report. However it is inevitable to mention that the field attachment program was possible by the joint efforts of both my supervisor and the respondents. In conclusion study was beneficial and vital to the researcher for he got to know what happens with the E-tax services and how best they can be applied from the information provided. hope the readers of this information will also brace it.