TABLE OF CONTENTS
DECLARATION
APPROVAL ii
DEDICATION Ii
ACKNOWLEDGMENTS iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FFIGURES viii
ABSTRACT x
ChAPTER ONE..aa..,,.,.,.,.,.,.,.,......,.......,.,.....,....,.,,..an,.....,.n.,.......,.,.,u....... 1
I 1
1~0 Introduction . .., .... 1
1.1 Background of the study .... ...... 1
1.1.1 Historical background ...... ..... ......... 1
1.1.2 Theoretical perceptive .~....... .... 3
1.1.3 Conceptual perceptive . ...... ...... .............. ., ..., .. 3
1.1.4 Contextual perceptive....,. ...... ......,...,, .4
1.2 Statement of the problem..... .. . . . .. 4
1.3 Purpose of the Study...... ... .. ........ . 6
1.4 Objectives of the study .6
1.5 Research questions .........~. .6
1.6 Research Hypothesis . .... 6
1.7 Scope of the study 7
1.7.1 Content Scope 7
1.7.2 Geographical scope . 7
1.7.3 Time scope 7
1.8 Significance of the study .. .. 7
1.9 Definition of key terms .. . ....... .... . . 8
V
C hAP’rE R r’~’!O .n,ng.u.,,s,,...,,,n.n,nnn ,..n,.,n, 10
LI1ER~AT1JRE REVIE’iI’~I........,........,.,. nug,n,e,.,.,,,,..un,gu,nus,, ~1~S~ 10
2.0 Introduction . 10
2.1 Concepts, opinion and ideas.10
2.2 Theoretical review 16
2.3 Conceptual Frame Work 17
2.4 Related literatures 18
2.4.1 Effects of tax policy on profitability 18
2.4.2 Effects of tax assessment on sales revenue 19
2.4.3 Level of the performance of small scale business enterprises 21
2.4.4 Effects of Income tax on the performance of small scale business 23
2.4.5 Relationship between income tax and the performance of small scale
business.. 26
2.4.6 Relationship between tax policy and financial performance . . 27
2.4.7 Relationship between tax assessment and financial performance 29
2.5 Gap of the study. . 30
CIIIAP1ER THREE ~32
M E1~HODOLOG’Y ~32
3.0 Introduction . . 32
3.1 Research design 32
3.2 Population 33
3.3 Sample Size ..... ,, 33
3.4 Research Instruments 34
3.6 Validity and Reliability of the Instrument . 34
3.7 Data collection Procedures . . . 36
3.7.1 During data gathering ., 37
3.7.2 After Data Gathering 37
3.8 Data Analysis . 37
3.9 Ethical Considerations . .. . . . ... . . . . . . . . . . . . 38
VI
C IIAPrER F01JFL000000000000 ,,oo,oooo,o,oooooo oooo,oo,noo. 00000o00oooooo~ooooooooo0o 39
DATA PRESENTATION, ANALYSIS AND INTERPRETATION ~39
4.0 Introduction 39
4.1 Personal Data 39
4.1.1 Gender of respondents 39
4.2 Analysis based on the objectives of the study 45
4.2.1 Level of performance of small scale business enterprises in Kabalagala
suburb 45
4.2.2. To find out if income tax affects the performance of small scale business
in Kabalagala suburb 48
4.2.3 Relationship between income tax and the performance of small scale
business enterprises in Kabalagala suburb 50
CHAPTER FIVE o no to no toot tOO tOCCata 0000000000000000000000000000CC 0000000000000000000000000000000000 53
DISCUSSIONS, CONCLUSIONS AND 00000000000053
5~0 Introduction COO ,00O~ 53
5~1 Summary of major findings.,.0,.000.000000 ~53
5~1.2 Income tax affects the performance of small scale business in Kabalagala
suburb ~ ~ 00000054
5~1~5 Tax assessment~~ 56
5.2 Conclusions ~ 0 000 57
5~3 Recommendation 00000000 ~ . 57
REFERENCES 00~00000000 ~58
APPENDIX I: ~ 0 60
QUESTIONNAIRE. ~00 000~000 000 000 . 60
APPENDIX II: TIME FRAME WORK..0000000. 64
APPENDIX III: ESTIMATED BUDGET000. ~.. 65
ABSTRACT The study was about impact of income tax and the performance of small scale business enterprise at Kabalagala town in Uganda and it was guided by the following specific objectives; to assess the level of performance of small scale business enterprises in Kabalagala suburb, Makindye division, to find out whether income tax affects the performance of small scale business in kabalagala suburb, Makindye divison, to establish whether there is relationship between income tax and the performance of small scale business. The study based on 80 respondents who were randomly selected among the small scale business enterprises. The researchers used frequency, correlation research design and descriptive research design which involved both quantitative and qualitative research methods of the study, the questionnaires were the main tools for collection of data from the field. Data was analyzed using descriptive statistics through the means and standards deviation. Tables was used to present the frequencies and percentages of different categories of data. Secondly, the inferential statistics was used via a correlation analysis. The study showed a weak positive relationship between income tax and the performance of enterprises at Kabalagala town. This was further evidenced by the Pearson correlation results of r~ 0.276 which was statistically significant at 5% level of significance. The researcher recommends that council should find a way of assessing the tax in that the Social security boards (SSBs) should pay early in the financial year in order to give enough time to the businesses to pay their dues rather than make an assessment and demand for payment spontaneously, introduce a scheme that allows taxpayers to pay the tax obligation in the installments over a given period as opposed to lump sum at once, URA should improve on the methods of collecting the taxes and URA should improve awareness amongst the taxpayers of the need to pay taxes and how their tax liability is determined and the time process of the tax assessment.
