CHAPTER ONE :

INTRODUCTION

1.0 INTRODUCTION .
This chapter, represents the background informantion about the study and also the back ground
of the study area , problem statement, the theories of taxation ,significance of the study ,research
objectives, research questions , research hypothesis ,scope of the study and conceptual frame
work.

1.1 Background of taxation.

It started in United States by imposing income taxes briefly with an aim of facilitating the civil
wars which were led by Napoleon in 1798-1890s . This kind of tax was billed as a temperary
measure ,renewable annually by parliament and has remained.

There after,the state and federal excise taxes also were introduced 1900. And these were known
as,State and Federal inheritance taxes, while the state began collecting sales taxes in 1930s .
Further more, On 2nd October, 2008 income tax was first imposed on the personal wealth.

On 9th February, 2016, British taxing tradition were diversed and the various colonies and local
communities had rich arrays of institutions from which to chose taxes on imports and exports;
property taxes (Taxes on the value of real and person assets) , Poll taxes (Taxes levieved on
citizens without any regard for thrir property income also began to operate (Wikipedia).

It was in 1910 when the poll tax was introduced in African as the the largest source of revenue .
The rate of taxation varied between 10% to 15% and it rescinded sometime in the 1920. Then in
the Mid 1930, the income tax was introduced also in African and it was not until in 1945 that an
income tax proper was finally introduced in Uganda. From then more types of revenue like
import and export , VAT tax , OTT mention but a few are now operating in Uganda.

Therefore taking Luwero District and specifically Luwero Town Council as my case study which
is also found in Uganda, below is a brief back ground of it.

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1.2 Location and back ground of Luwero Town Council.

Location

Luwero Town Council is situated 64kms North of Kampala City along Kampala–Gulu high way.
It lies on the latitude between 00 South and 30 North, Longitude between 320 East and 3200 West.
Luwero Town council is under the local government and it is the heart of Luwero district
surrounded by Butuntumula, Bamunanika , Kikyusa ,Katikamu and Luwero Sub counties.

Luwero District is boarded by Nakasongola District in the North, Wakiso in the South,
Nakaseke District in the west, Kayunga and Mukono Districts in the East.

Back ground.

The name Luwero was coined by travellers and the Kingdom of Buganda during their fighting.
This word was being used as a place of relief (Buweero or Luwero) after travelling for a long
distance or after a battle won. By then, there was a famous war between the Buganda and
Bunyoro Kitara Kingdoms.

This area has a piece of land allocated by Buganda Kingdom Administration (Buganda
Treasury). In this case, the administrators of Buganda Kingdom being headed by Kisingiri
decided to develop. And this was started by constructing his administration head quarters within
Luwero definitely, this had to bring a change from traditional idea of centering all the offices in
central (Kampala).

In 1973 when North Buganda province was divided into Kyagwe and Bulemezi , Luwero
Trading Centre became the head quarter of the later. Following the 1974 decree that
automatically bestowed township status, all trading centres became town boards (Not self
accounting) and it remained so until 1989 when it attained a self accounting township status.

On 1st July, 1989, Luwero Town Council attained self accounting status, thus empowering the
new urban council to make its own deliberations, decisions and implement them accordingly,
making annual budgets, by- laws and policies governing the urban town council.

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1.3 Historical perspective.

Luwero Town council for the last 30 years after the transition war of the late President Milton
Obote to the current President His Excellency Yoweri Kaguta Museveni in 1980-1986 left the
Town Council and District as a whole in a mess hence unable to meet their set targets as per
revenue collection according to the expected standards and goals. Much as the district has a lot
of sources of income more especially agricultural products like; pineapple growing, bananas,
coffee, water melons, animal grazing and poultry farming. Due to Individual, institutional,
community factors which could be political instabilities, unpredictable weather changes, diseases
like AIDS and other related diseases. Traced from, [Local Government Councils Performance
and Service Delivery in Uganda. Luwero District Council Score Card 2013).

The low revenues collected has led to poor sanitation in the town council, limited health and
limited education service delivery, no home supervision by the health inspectors, limited
security, limited water inspection, poor infrastructures within the town council’s jurisdiction, and
hence loss of people’s lives yet if taxes were enough would perform such duties.

The human resource crisis leading to limited performance of the revenue department in Luwero
Town Council has led to Luwero being among the Low and Middle-income countries (LMICs)
like Tanzania, is receiving increased global attention. This has resulted into policy makers and
planners realizing that it is simply not possible to achieve the Millennium Development Goals
(MDGs) if the revenue collection is not as expected to run the activities with the town council
effectively. Low revenue collection performance leads to inappropriate performance of the town
councils activities, with reduced development outcomes, as the public does not benefit from the
services hence the out come being poverty, (Asigele.O, 2012).

1.3 Theoretical perspective of Taxation.

The Cost of service (Purchase theory). This is the first and simplest principle for the
distribution of Taxation which aims at payment for public service or payment to be equal to the
cost of services rendered. The idea of purchase and sale between the citizens and the state leads
to untenable conclusions respecting the nature of the state. This theory is open to many
objections like; the method of specific payment of public services does not result in justice in the
distribution of the burdens of taxation. For example, National defence, Legal Administration or
General economic activities of the state.
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  In this case, it is not possible to distribute advantage among individuals and to charge
them in proportion.
 Secondly, the theory implies that the citizen is at liberty to refuse the services of the state
and by refusing is able to escape the necessity of paying taxes.

The theory of Equal Sacrifice: This suggests that, make tax satisfy the principle of justice in
that we should take into consideration the sacrifice entitled by the tax payer. The state should see
that the tax subjects the tax – payers to an equal sacrifice. This theory aims at realising the
principle of progression in tax system and also suggests that, tax should impose the least
aggregate sacrifice. But, this will be possible only if we impose very heavy taxes.

 It is not all feasible, in that such heavy taxes will discourage saying enterprise and it will
have very serious and harmful repercussions on public in general.

The ability to pay Theory: This looks at the solution to the question of justice in the modern
taxation depending on the ability to pay. But the difficult part of it is to determine how this
ability to pay can best be measured. And here a question is raised, Should it be in respect of
property, income or expenditure? These objectives of ability to pay are discussed as follows;

 Some suggest that if a tax is imposed according to the property that a person possesses, it
will be equitable. But, property is not a correct index of a person’s ability to pay. One
person may posses one dozen of houses from each he gets 1000/= monthly. While
another one has one house but he gets 25,000/= per month.
 Another one may be a person’s expenditure. For example, if he is able to spend very large
amount he must be in a position to pay tax. This is wrong because, he may spend because
of large number of dependants.

1.4 Conceptualization.

Delivering quality service has a significant relationship with poverty eradication, customer
satisfaction, customer retention, loyalty, costs, profitability, service guarantees and growth of
organization. However, the poor state of customer service in most town councils in Africa ; for
example in Kenya resulted in high turnover and weak morale among the public to pay taxes,
making it difficult to guarantee 24-hour coverage resulting in, problems with administration,
increased cost of operations due to inefficiencies leading some people / workers being involved

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in corruption to look for an alternative provider and to spread negative word of mouth which
affects potential clients leading to less revenues collected and hence affecting growth of the town
council and the end result is poverty in the area. This situation is further worsened by the public
or community perception of functional issues which they perceive and interact with during the
course of seeking help so as to avoid paying taxes such as physical facilities, internal process;
interactions with revenue collectors, town agents and other support staff as poor and
unresponsive, (Kenneth N. Wanjau et al, 2012).

In Wekepedia Encyclopedia it is noted that one of the rich man in America known as Rockefeller
constructed a building known as Rockefeller Centre or Rockefeller foundation . In this
foundation a lot of commercial activities take place and over 40,000 people are employed in that
area which helps the government of America to fetch a lot of revenue since its citizens are able to
earn hence eliminating poverty.(Wekepedia Encyclopedia)

Therefore poverty emanates from lack of employment or even limited source of income hence a
need for the local government of Luwero District to create opportunities for its community as
source of income so as to reduce unemployment and hence able to get more revenues from them.

A number of factors ranging from individuals, institutional and national level operate together to
influence how tax administrators take up interventions to improve their work practices. Often
this influence works through the local personal, education, professional, community, or
institutional environment in which work takes place, or the social, cultural, economic, and
political environments more generally. Specific efforts within these environments to manage tax
payers actions like requesting them to write to the concerned persons complaint letters in case
they are not satisfied with what has been assessed upon their business. (Ojokuku. R. M et al,
2011).

Improving the productivity and performance of service delivery among the tax administrators’
worker to ensure that the public benefits from paying taxes efficiently and effectively delivered
continues to be a major challenge to African countries. Human resources; consisting of town
agents, town clerks, the treasurer town councils ,health inspectors and non staff, are the most
important assets of administration systems. The performance of administration organization
depends on the knowledge, skills and motivation of individuals. It is therefore important for

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employers to provide suitable working conditions to ensure that the performances of employees /
tax collectors meet the desired standards, (Magdalene H, 2006).

It is widely acknowledged that tax payers not producing the desired output of tax as in reference
to the population of the town council and the revenue sources available.

1.5 Problem Statement .

It has been evadanced that the revenue collected is not enough yet the population and the
activities carried out in Luwero Town council are numerous . For example the town council has
businesses like; Agricultural products including pineapple, water melons, oranges, mongoes ,
other business sources includes Hotels like Nemrod, Lidrines , Bukenya Bar and Lodges and
many other small ones. More so both whole sale and retail business are carried out in this town
and other an mentioned. But still there is a gap upon the revenue collected which forced the the
researcher to go a head and find out what the problem could be. And when she approached the
the tax administrators the main problem for them to deliver services efficiently and effectively
was, tax evasion.

1.6.0 Objectives of the study.

1.6.1 General objective.

To evaluate the impact of tax evasion economically, socially, politically and environmentally
upon social service delivery in Luwero Town Council.

1.6.2 Specific objectives.

.
1. To evaluate the impact of tax evasion socially leading to poor sanitation as one of the
social service delivery in Luwero Town Council council.
2. To establish the empact of tax evasion on insecurity as a social service to be delivered in
Luwero Town Council so as to find a solution for it.
3. To establish other sources of funding apart from revenues collected for reliable service
delivery in Luwero Town Council.

1.7 Significance of the study.

Luwero Town Council and other town councils in Uganda by policy are under decentralisation
program where by, under this kind of program we have administrative decentration, political
decentralisation, fiscal decentration and economical decentration. That means, they are entitled

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to revenue collection and expenditure within there areas without any interfearence. So they are
entitled to offer services like; free medical services ,security, health sanitation, public health
campaigns, immunisation, enviromental protection , infrastructure development and others.
Revenue collected is supposed to be consumed / utilised within the town council 100% without
any limitation since of which, 80% has to come from within the public / community.The study is
trying to explore wheather the main cause of tax evasion if identified can be eliminated for
improved service delivery.

1.8 Research questions.

a) What impact has tax evasion caused in relation to social service delivery in Luwero Town
Council?
b) What remidies have been identified to cab the gap of tax evasion so as to meet the target
as partains social service delivery to the public?
c) Why has the public continued to evade the taxes?
1.10 Content Scope.
This study is focused on tax evasion and social service delivery in Luwero town council -
Luwero district.

1.11 Geographical scope.

The research study was limited to Luwero Town Council – Luwero District and it involved
evaluati of poverty leading to tax evasion hence leading to poor service delivery.

1.12 Time Scope.

The study was be carried out from 1st July – 30th August, 2018.

1.13.0 Conceptual frame work.

Independent variables Dependant variables

 Directly running away from
 The introduction of
paying taxes.
 Corrupting the tax officials. multiple taxes.
 Under declaration of the  The high taxes imposed.
business.  Public persiving taxation
as a punishiment.
 Failure to sensitize the
local business people upon
the use of taxes.
 Political influence.

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1.13.1 Narrative.

The impact of tax evasion is highly increasing in Luwero Town Council which if not solved end
up affecting public service delivery hence leading poverty in Luwero town council. The effects
are evidanced as; economical, enviromental, social and political.

1.13.2 Social.

Most of the business men and women when approached by the researcher,do not intend to evade
taxes but as a result of social problems coupled with diseases due to poor sanitation in the area
and also due to lack of enough capital in their businesses, they end up doing so in order to
survive.

When the researcher approached a number of the tax payers they said, they have got many
unanswared questions on how the revenue collected is spent. They gave an example of the poor
sanitation in their town council, the insecurity, poor health service delivery health centre (Case
study Luwero Health Centre IV) . This means there is no proper accountabilities which creates a
bad atittude towards paying taxes hence end up looking at it as a punishiment to them and
therefore end up running away from fullfilling the obligation of tax clearance.

The highest pecentage of the community members who are businesse men and women are
illetrate . In this, they are ignorant about the revenue collection [lack of sensetization]. Therefore,
if they had an idea about taxes from school it would simplify the work of the tax collectors since
they will be dealing with people who have an idea why they are paying taxes.

1.13.3 Political (Pressure groups) .

Politically, people had a wrong attitude towards paying taxes .When approached by the
researcher as a group, the respondents answered that all the taxes collected is embesselled and
diverted by the government to perform activities which do not benefit the community. For
example, protecting the minority group, they set an example of giving the political leaders alot of
security instead of protecting the whole district / country and living the community to suffer with
the criminals . They sited an example of robbers at the beginning of this year 2018 who left most
homes affected and the community resorted to providing security for themselves by looking for
strong men and younth from within the homes to gard the community.

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1.13.4 Institutional effect.

When the researcher approached the Town Agents (Tax collectors) of Luwero Town Council
upon the issue of tax evasion , the information got was, limited resources to always organise and
sensitize the community upon the impact of tax evasion and the use of taxes has made the work
of the tax administrators difficult hence leading to less revenues collected due to tax evasion.

More was upon the public / community who are not willing to learn. This was evidanced by the
researcher on the Baraza meeting. When the Town Council called upon the community to come
and give their views upon service delivery, a few people turned up and the excuse was they can
not close their businesses since they will gain nothing at the end of the day.

More on the above was the political influence. The the revenue collectors and the administrators
in Luwero Town Council have always had a challange by the opposition side who discourage the
tax payers from fulfilling their obligation due to self ambitions making it hard for tax
administrator to deliver services to the public successfully.

1.13.5 Economical.

The researcher found out that due to tax evasion, less or little revenues are raised every financial
year which affects their performance in service delivery. That is the reason as to why sanitation
is poor, no enough drugs in the health centres, high crime rate leading to insecurity and others
are witnessed in Luwero Town Council.

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 CHAPTER TWO:

LITERATURE REVIEW

2.0 Introduction
This chapter presents information about the authors of tax and their debat upon successful
revenue collection and making service delivery better using the tax collected from the public.

2.1 Forms of taxes:

The Simplified Revised and updated book of Taxation by N.A Saleem E.A Edition (2000)
identifies two forms of taxes namely;

Direct Tax .This type of tax according to N.A Saleem E.A Edition (2000) from Kampala
University liblary lands or it is charged upon the service or goods which the business man or
women distributes or directly to the consumer of the goods and services. For example , Trading
licenses upon the business people, Premises tax upon the owner of the building which is being
rented, Cost Insurance and Fright (CIF) upon the importers of goods and many others.

Indirect Tax. According to N.A Saleem E.A Edition (2000), this type of tax lands on the
consumers indirectly for example Value Added Tax which is paied by each and every consumer
of any goods and services in Uganda. For examples services like Electricity, Transport,
Communication services, goods like; sweats, sugar, clothes, drinks and many others are paid for
taxes by each and every ugandan whether young or old.

2.2. Principles of Taxation.

In the book of Taxation Simplified (Revised and updated) By N.A Saleem E.A Edition (2000),
he gives different principles of Taxation which can help our town council to use when leiving the
public and below are some of them;

Cost of service or Purchase. He noted that, the first and the simplest principle for the
distribution of taxation would be to treat it as a payment for public service and payment for equal
to the cost of services rendered. This idea sale between the citizen and the state and it leads to
untenable conclusion respecting the nature of the state.

His idea is open to many objections . For examole, the method of specific payment of public
services does not result in justice in distribution of the burdens of Taxation. Take an example of

10
the National Defence (Security), Legal Administration or General Economic activities of the
state. In all the above cases it is not possible to distribute advantage among the individuals and to
change them in proportion.

Secondly, this implies that the citizen is at liberty to refuse the service of the state and by doing
so, is able to escape tax payment.

Equal scrifice. This suggests that, make tax satisfy the principle of justice. That we should take
in to consideration the sacrifice entitled by tax payers. The state should see to it that the tax
subjects the tax payers to equal sacrifice.The aim of this is;

 Realising the principle of progression in tax system.

 Tax should impose the least aggregate sacrifice.

But, this will be possible if only we impose very heavy taxes. Yet such heavy taxes will
discourage the saying enterprises and it will have a very serious harmful repercussions on the
public in general.

Ability to pay.This is also a solution to tax payers by the above writer. It maily depends on the
concept of ability to pay. But the dificult part of it is how to determine the ability to pay or how it
should be measured. A Questions was rised; Should it be in respect of property, income or
expenditure? This was to test to the issue of ability to pay.

To answer the above, some suggested that if a tax is imposed it should be according to the
property a person possesses. But again property is not equitable . For example one person may
have dozens of houses for rent and gets only 1,000/= monthly while another one with thesame
gets 25,000/= per month.This makes it difficult to assess the two people.

2.3 Causes of tax evasion:

2.3.1 Individual factors. It is believed that the highest percentage of our community is ignorant
about why they pay taxes and they have a mentality that the revenue collected does not benefit
them. More so what they get from their sales either from agricultural product, their small scale
and retail business are basically for provision of basic need “a problem,” “not satisfying,” and an
“obstacle.” Many respondents also expressed concern that it was a struggle to meet basic
expenses. (Arise, 2009).

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Weak communication skills and incorrect practices can act as a barrier. If the tax collectors
are unable to explain to the tax payers, the outcome of tax collected may be inappropriate. The
outcome is influenced by the approach. It is not easy to convince a tax payer as the cultural
perceptions about tax is a compulsory levy, (Scheppers et al, 2005).

Negative attitudes towards tax collectors .This can act as a barrier and have a detrimental
effect. Studies indicate the use of racially explicit language by bad-mannered staff, whose hostile
attitudes are obviously influenced by the social and ethnic status of those in their care, affect the
performance of workers (Scheppers et al, 2005).

The authoritative communication style of the tax collectors can act as a barrier. The
confrontational way in which tax collectors sometimes approach the ethnic minority tax payers
can result in shame and discomfort, for example, when delivering assessment form, when
checking whether the tax payer has cleared and not giving the tax payer advice if the tax imposed
is too high for his / her business. (Scheppers et al, 2005).

The undiplomatic style of conveying information and the way it is expressed can act as a
barrier. In case someone is found not clean with tax payment due to the above mentioned
reason, the business is closed instead of listening to his query and directing him/her where to go
and complain from. And also no assessment did every year to see the performance of the
business in comparison with the previous years to the current year. (Scheppers et al, 2005).

Multiple taxes levied upon people like annual trading licenses, revenue upon rental houses,
Value Added Tax [VAT], Over The Top (OTT) Tax which was introduced recently by URA on
1st July, 2018 on social medial and mobile money and other taxes all this discourage a tax payer
from paying all the taxes and he/she end up evading. [URA, Introduce OTT tax effective 1st July,
2018. SMS by MTN on 2nd July, 2018].

It was observed all over the country people complaining about OTT charges and social media
charges over the Radio, TVs like NTV and other media sources. But all this was because the
majority of the population is poor and therefore there is no need for multiple taxes which may
lead to evasion of taxes.

It has been observed that most of the people having mobile money businesses in Luwero Town
Council are young youth who have just come out of school (Institutions) and have no

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employment and they end up forming up their small mobile money businesses to survive as they
wait for better jobs so with the imposing of the OTT tax it will disorganise them and they will
transfer the bitterness to the government.

2.3.2 Institutional factors .While public servants and town agents in Cameroon do not
always reside in the communities they serve, they augment regular services with outreach
services and active follow-up beyond the tax payers, (Arise, 2009).
A sense of professional identity and professional conscience can also be included in this
category. Previous research has found that workers/ tax collectors with a strong professional
conscience experience significant demotivation when work conditions, such as lack of
appropriate supplies, prevent them from providing high-quality service (Nina. J, 2010).

Not being motivated at least by being supervised, nearly all of the workers mentioned a desire
for stronger supervision. Half of the workers stated that they received no supervision or
management support from the supervisors at their work place, (Nina. J, 2010)

Perceived non-responsiveness of management contributed to a sense of lacking management

support. Five workers mentioned that management had not responded to specific requests that
they had made, generating frustration, particularly when the problem for which they sought help
degraded quality of there work. (Nina. J, 2010).

Conflict between the procedures learned through trainings and expectations of management was
another important issue raised during the interviews. Many workers explained that training
protocols stipulated a certain maximum number of clients, while managers expected the workers
to see a much higher amount of tax collected. As a result, tax collectors were frequently forced to
condense their performance, (Nina. J, 2010).

Intrusive tax collection procedures and standard practices applied with insensitivity to tax payers
can act as a barrier to tax payers. The action taken upon some tax payers can act as a barrier
when other are frightened or start to fear the unknown. Tax payers may fill embarrassed when
handled by force. This may cause the maximum amount of embarrassment and shame,
(Scheppers et al, 2005).

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2.3.3 Community/ public factors. Although tax is compulsory levies which every person
conducting a business must be sure of every year or monthly or even daily, business, ethnic
minority tax payers seem to be confronted with barriers when it comes to fulfilling that
obligation. This because of some reason which the community / public complain of. Yet, the tax
collectors often are oblivious to these barriers; although they may share to some extent the
burden of responsibility for them Language and culture are by no means the only factors that
may act as a barrier for example;
Poor language skills also have an adverse effect on the confidence of the tax payer. It causes
yet additional emotional stress and discomfort to the normal stress that often accompanies
poverty. Language difficulties can have a detrimental effect upon tax payer’s ability to
comprehend proposed tax upon him/ her. Inter Net Surfing (Wikipedia 2016) The History of
Taxation.

Language also hamper the tax collectors’ attempts to obtain vital information upon the tax
payer’s business. It is important for the two parties to come into agreement through correct
assessment of the business to prevent any misunderstandings with regard to obtaining informed
consent to tax clearance that could prevent tax evasion risks (Scheppers et al, 2005).

Differences in political ideologies within the community. I.e. the explanatory model of health,
illness and healing methods, can act as a barrier to the detriment of the ethnic minority
patients. Ethnic minority patients may have one of the following sets of belief patterns. (i) The
belief that western concepts should be holistically defined; a holistic view integrates the body,
mind and soul.(ii) The belief that personal problems and illness are caused by external factors
such as family relationships and less by internal influences such as damaging childhood
experiences. (iii) The belief that external causes can be natural or supernatural by nature,
(Scheppers et al, 2005).

Ethnic minority patients' cultural perceptions about symptoms may act as a barrier, as their needs
may be differently expressed. Ethnic minority groups may present classical symptoms in a
different way, which could result in a missed diagnosis, (Scheppers et al, 2005).

Disapproving perceptions and attitudes with regard to health services and personnel can act as a
barrier. This is especially apparent when ethnic minority patients are dubious about the benefits
of health services or simply do not see the benefits of it. Demand in health services is influenced
greatly by consumer tastes and preferences and the desire to purchase health care. Ethnic
minority patients may see providers as a rather alien or distant group of people and foster too
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much respect for medical personnel. This may, in turn, restrain them from asking important
questions about medical instructions, (Scheppers et al, 2005).

Non-recognition of medical needs by the patient is another barrier we have to overcome. It

may lead to the patient not receiving optimal medical care, e.g. in the case of pregnancy. Women
patients of certain ethnic minorities think that prenatal care attendance is only required in case of
past or present problems with pregnancy, (Scheppers et al, 2005).

Unawareness of service availability or a lack of knowledge about the services at one's disposal
can act as a barrier to the use of health services as a tax payer. When the ethnic minority patient
has no knowledge of e.g. the function and availability of primary care workers other than the
physician, then the use of primary health care will inevitably be restricted and inappropriate to
his or her needs. It is also reported that the use of screening services (e.g. breast and cervical
cancer screening) is low among ethnic minorities, due to a general lack of knowledge about such
services and a different understanding of the nature of preventive care, (Scheppers et al, 2005).
2.4 The Relationship between tax and service delivery.
There is a great relationship between tax and social service delivery basing on the following.
First and fore most reflecting way back in the in United States where taxation began from during
the civil war which was led by Napoleon in 1798-1890 income tax was imposed with an aim of
facilitating the civil war with an intension of protecting the community.

We also realise in Denmark every employee pays 60% of tax which helps them and their families
after they have retired. The tax levied upon their salaries provides free education services to their
children at university level and also free lunch in any Hotel of the person’s interest every day to
the retired members which is a service delivery ( The back ground of taxation in Denmark
‘Wikipedia, 2018).

In Uganda, for easy management , effective and efficiency service delivery every district was
given the mandate by Section 81 Local Government Act CAP 234 to collect taxes / revenue from
the services within .For example, the lodges, Hotels, private schools, shops, markets and others
so as to fulfil the obligations of social service delivery. Therefore without taxes / revenues it is
difficult for the local government to deliver the services like health, security, sanitation education
and others.(The Local Government ACT 1997, Part VIII – Financial provisions 78 (1-5, 79 (1-3).

15
Therefore, without taxes it is difficult to deliver services to the community much as there are
other sources like the donors.

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 CHAPTER THREE:

METHODOLOGY

3.0 Introduction.
This chapter describes study area, study design, study population, sample size determination,
sampling procedure, inclusive and exclusive criteria ,data collection methods, study instruments
data analysis plan, quality control, definition of variables ,data processing and management ,pre-
visiting, data analysis and presentation , ethical consideration, study limitations and
dissemination of results of the research report.

3.1 Study design.

A cross-sectional descriptive study was used to gather both qualitative and quantitative data. And
also questionnaires given to groups and individuals.

3.2 Study area.

The study was carried out in Luwero Town Council in Luwero District which has a total
population of 21,367 businesses and the Town Clerk’s departments responsible for all the
activities in the department including management and expenditures of the revenue collected
within the Town Council.

3.3 Study population.

The study population included some tax payers attached to Luwero Town Council in Luwero
District apart from Government Institution like; the education and the Luwero Health Centre IV.

3.4 Sample size determination.

The sample size taken was 100 respondents who included the business men and women plus the
technical persons at Luwero Town Council under the Revenue and Administration departments.

3.5 Sampling procedure.

93 respondents were selected by simple random sampling from the study population (21,367
business people both men and women) who represented the study population and 7 respondents
selected from the Town Council employees in the department of revenue / Treasurer’s and
administration departments to represent the 17 employees in the two departments.

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3.6 Methods of data collection.

The study instruments that were used during the study included; questionnaires that comprised of
both open and closed questions, group discussions and individual were all used for data
collection among business people and the institution in Luwero Town Council.

Other instruments like the Identity card and an introductory letter from the school and the Town
Council were also used for personal identification, computer, devices like the modem and flash
were used to retrieve, save and print data.

3.7 Inclusive and Exclusive Criteria.

The Town Clerk who is in-charge of the administration and all heads of departments of the
revenue and the business commmunity were considered in the study. Whereas non - civil servant
(Volunteers) like; the internees, askaris, cleaners and others were not considered in the study.

3.8 Definition of varriables.

Inadquate taxes in Luwero Town Council was the identified dependent varriable brought about
by factors related to individual, institutional and community factors identified as independent
varriables that were considered in the study.

3.9 Data processing and management.

Quantitative data was filled ,coded and entered into the computer where it was edited and
checked for consistance. Coding was also done to ensure proper identification of appropriate
varriables for data analysis and frequencies , tables were generated whereas, qualitative data was
obtained from the respondents and manually coded ,analysed according to the themes that were
formed and findings were integrated and results were presented and analysed.

3.10 Quality control.

For accurancy, data was collected and quality of the study involved using competent assistants
who were among the internees who first got a training on how to use research instruments,
techiniques of conducting interviews , creation of reports of the instruments and field editing at
the end of each day’s exercise was done to ensure good quality control.

18
3.11 Data analysis and presentation.

Data was analysed by using statistical package of social scientific version 12.0 (SPSS 12.0) and
excel soft wares from where the summarised data was presented using appropriate frequency
tables and narrations.

3.12 Ethical considerations.

The researcher first got an introductory letter from the Registrar Kampala University –Luwero
Branch. Then, the introductory letter was presented to the Town Clerk – Luwero Town Council
Luwero District and a copy was given to both public and private institutions researched upon.
For example Luwero Health Centre IV who gave the researcher permission to carry out research
study in the areas. The researcher explained to the interviewee the purpose of the research study
so as to get information.

3.13 Study limitations.

The researcher experienced limited funds used to facilitate the expenditure on stationery,
electronic data storage devices like; flash discs, typing and printing, transport costs, data
collection.

The researcher also failed to get some information from the business community and some
government institutions since they thought it was based on political ground.

3.14 Research findings.

A comprehensive report was compiled and three copies were obtained from it .Where one copy
was presented to Kampala University School of Arts and Social Sciences , Department of Public
Administration – Luwero Branch, another copy submitted to The Town Council – The Revenue
Department, the third copy was retained by the Researher for future reference that the researcher
fulfilled the requirements for the award of a Bachelors Degree in Public Administration.

19
 CHAPTER FOUR :

PRESENTATION OF FINDINGS.
4.0 Introduction.

This chapter deals with data collected from a sample size of 5 Town Council workers in a
department of revenue and administration ( the Assistant Town Clerk, the treaurer, the town
council auditor and the town agents ) and also 2 government institutions that is; the Education
and Health where tax is expected to be spent. 93 business places like the mobile money
businesses, cafes ,stationeries e.g Alpha bookshop,Mpact stationery and Motoni stationeers, bars
and lodges e.g classic View, Motel, Inno Land Lodge, the market place of Balikyewunya market
vendors dealing in vendoring of sweet bananas , gonjas and drinks . And also,Kasana market
vendors were; fish sellers, boutcher men, banana sellers were met and also some retail and whole
sale shops with in the town council which has been analysed , interprited and presented in tables
figures , percentages, frequences by the help of computer packages such as micro soft word
program on factors that lead to tax evation and hence leading to poverty in Luwero Town
Council.

4.1 FINDINGS ON SOCIAL DEMOGRAPHIC CHARACTERISTICS OF THE

RESPONDENTS.

Social demographic characteristics of respondents about age ,sex, marital status,tribe ,highest
level of education and the religion were assessed on a sample size of 7 Town Council employees
and 100 business men and women represented the study population of 21,367 businesses people
in Luwero Town Council.

TABLE.1 :Showing age frequencies and percentages of the repondents.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGES

Age 18 – 28 08 23%
29 – 39 20 57%
40 – 50 05 14%
51 – and above 2 6%
TOTAL 35 100%
Source: Luwero Town Council Survey data 2018.

20
Majority of the respondents 20 (57%) were of mature age, aged between 29 – 39 years while
the least 2( 6%) were aged between 51 – 61. This shows that the majority of business men and
women are between the age of 29-39 years which 57% and by so the most active age group.

Table .2 : Showing the sex frequencies and percentages of respondents.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Sex Female 13 37%
Male 22 63%
TOTAL 35 100%
Source: Luwero Town Council Survey data 2018.

Majority 22 (63%) of respondents were male while only 13 (37%) were female. This means
mean are the most people involved in business making.

Table.3: Showing the types of businesses frequencies and percentages of the respondents.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Types of
businesses Whole sallers 03 08%
carried out Retail businesses 28 80%
Bars and lodges 02 06%
Kiosks 02 06%

TOTAL 35 100%
Source: Luwero Town Council Survey data 2018.

Majority 28(80%) of respondent were retaile businesses while the least sub-catagory of the
respondents 02 (6%) were kiosks and 02 (06%) were bars and lodges and the remain 03 (8%)
were whole saller respondents respectively. This means that in Luwero Town Council most
businesses are retail with 80% of them.

21
Table.4: Showing frequencies and percentages of highest levels of education of the
respondents.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Level of education Secondary 23 74%
Tertiary 02 6%
0- Primary level 10 20%
TOTAL 35 100%
Source: Survey data 2018.

Majority 23(74%) of the respondents had obtained secondary level of education while , 02 the
least 2 (6%) had obtained tertiary only and 10 [20%] had no level to primary seven.

The researcher’s findings was that most business men are from a level of S.1 – S.6 drop outs
with 74% business people.

Table. 5 : Showing tribe Frequencies and percentages of respondents conducting business

in Luwero Town Council.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Tribe Baganda 15 43%
Baluuli 08 23%
Banyankole / Bakiga 05 14%
Basoga 03 08%
Others 04 12%
TOTAL 35 100%
Source :Survey data 2018.

Majority 15 (43%) of respondents were Baganda , 08 (23%) were Baluuli , 05 ( 14%) were
Bakiga , 03 ( 08%) were Basoga and 4 (12%) belong to other tribes.

The researcher found out that the majority of business people in this town council are Baganda
with 43% .

22
Table. 6 : Showing Religion Frequencies and percentages of respondents.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Religion Protestants 11 31%
Muslims 02 6%
Catholics 12 34%
Pentecostals 08 23%
SDA 02 06%
Non belivers 00 00%
Others 00 00%
TOTAL 35 100%
Source: Luwero Town Council Survey data 2018.

Majority 12 (34%) were catholics ,11 (31%) protestants, 08 (23%) pentecostals , 02 (06%)
muslims, 02 (06%) SDA and neigther 00 (0%) any respondent was a non believer nor belonged
to any other religion.

This means that most of the business people in Luwero Town Council are christians who work
from Monday to Saturday with a total percentage of 88% which includes protestants, catholics
and pentecostals.

4.2 FINDINGS ON FORMS OF TAXES.

Table 7. Showing whether respondents feel good good when paying direct or indirect taxes.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Prefer indirect tax Yes 30 75%
since it does not
affect them directly

Prefer direct tax

since it is clear and No 05 25%
easy to calculate
TOTAL 35 100%
Source: Survey data 2018.
All 30 (75%) of the respondents reported that, they prefer indirect tax since they do not notice
whether they have paid or not paid the revenue. And 5 of them prefer direct since they are litrate
enough to calculate it and it is more transparent more so easy for accountability.

23
4.3 FINDINGS ON THE CAUSES OF TAX EVASION.
Table .8 .Showing the number of respondents approached upon the causes of tax evasion.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

The high income earners from the Rich 25 65%
business
The low income earners Poor 10 35%
35 100%
Source: Survey data 2018.
Out of the 35 respondents approached, 25 (65%) said that the reason as to why they evade taxes
is how they are handled which is not ethical by some officers. And 10 ( 35%) of these said it was
because they did not get the services out of their revenue collected and also they were not
sensitized the use of revenue so as to be motivated . In this they see it as a punishiment.

4.4. FINDINGS ON THE RELATIONSHIP BETWEEN TAX EVASION AND SOCIAL

SERVICE DELIVERY.

CATEGORY SUB-CATEGORY FREQUENCY PERCENTAGE

Both Local government workers Workers 5 25%
and the community. Community 30 75%
35 100%
When the researcher approached 5 (25%) of the local government workers (respondents) at the
town Council in the department of revenue she found out that tax evasion affects their
performance since the highest percentage of income comes from the revenue collected. Tax
evasion therefore affects service delivery.

The researcher approached 30 (75%) of the respondents from the community and their response
was there is a gap in effectiveness and efficiency upon social service delivery. For example
insecurity, enviromental protection , sanitation and health. Therefore they support that tax
evasion should be controlled for effectiveness and efficiency. For example, road repair, provision
of security, health and sanitation, planting of trees for a good enviroment in the town, paying the
support staff like the garbage collectors in time, drainage clearance and others.

24
 CHAPTER FIVE:

SUMMARY, RECOMMENDATIONS AND CONCLUSIONS

5.0 INTRODUCTION.

This chapter , ,recommendations and conclusions of the impact of tax evasion and social service

delivery in Luwero Town Council-Luwero District.

5.1 Summary.

Data was collected on age ,sex, highest level of education ,tribe and religion.35 (50%) of the
study population (100 respondents) participated in the study of which the majority of the
respondents 20 (57%) were mature respondents aged between 29 – 39 years.This indicates that
majority of the business persons (respondents) interviewed were mature in age and legible for
the study. Further still, 28 (80%) of the respodent were mature enough to make decisions.

Regarding education, the study findings revealed that majority of the respondents 33 (94%) had
attended secondary education as the highest level of education of education and only 2 (6%) had
stopped in primary which means majority of the tax payers have brief knowledge about taxation.
It was also revealed that ,majority of the respondents 15 (43%) were Baganda since the common
language which was being used is Luganda and also the Town Council being located in
Buganda region and the rest belong to other tribes in the country.

Majority of the respondents 88% were christians and other 12% were of other faith.This means,
Sundays are the most days occupied with prayers by most business people and the Town Council
workers and the rest of the days they are for business.

5.3 Dicussions on institutional impacts of tax evasion and social service delivery in
Luwero Town Council.

The study revealed that majority of the respondents 25 (71%) of the respondents said are
moderately motivated.This finding corresponds with what (A rise, 2009) published voluntary
counselling and testing counsellors described the low salary as the problem and an obstacle
where over half of the respondents who were directly responsible for provision of VCT including
right counsellors considered the salaryn being too low compared to the work load.Majority of the
respondents 20 (57%) reported that the health facility does not have all required equipments used
to diagonise clients .This finding is in lime with ( Nina . J ,2010) who noted that,health workers
25
with a strong professional conscience experience significant demotivation when working
conditions such as lack of approriate supplies and equipments prevent them from providing high
quality services.The study also revealed that, all respondents 35 (100%) said they are supervised
by their Supervisors. This finding is however an opposite to what ( Nina . J ,2010) who noted
that half of the community counsellors recieved no supervision or management support from
their supervisors at the health facilities and yet supervision is one of the motivative measures in
human resource management.

The study also revealed that worker (Town Agents) don’t get feed backs from the tribunal
committee after forwarding the cleints’complaint.This study finding is in line with (Nina . J
,2010) who said that , percieved non –responsiveness of management contributes to a sense of
lack of management support like providing feed back to the responsible people by the managers
which generate frustrations particularly when the problems for which the tax payers can seek for
help from treasurer are not given response to which discourages paying revenue willingly.

5.4 Discussions on community / Public impacts of tax evasion and social service delivery
in Luwero Town Council.

Respondents were interviewed whether there is any language barrier with in the surrounding
community and the majority 29( 83%) said no. However, some 6 (17%) respondents reported
language as a barrier with the sorrounding community. This is in line with ( Scheppers et al ,
2005) who said that , although migration is a norm and natural right of every individual, ethnic
minority respondents seem to be confronted with barriers when using revenue teminologies
during collection which leave them confused. Therefore, language and culture are by far factors
that might have resulted to tax evasion in Luwero Town Council.The study also revealed that,
majority 22 (63%) of the respondents (Revenue collectors) do not know whether clients get
negative attitudes towards servcies provided within the town council.This finding is related to (
Scheppers et al , 2005) who said that non recognition of people’s needs is another barrier that
should be overcomed and it may lead the tax payers not to respond positively.

26
5.5 RECOMMENDATIONS.

 There is need to provide some loans to the business people at a favourable interest rate so
that they can be able to operate businesses with high profits and hence able to pay taxes
instead of running away.
 Operation Wealth Creation (OWC) should be supervised critically so that the community
can gain from it and be able to meet their nessesities and also able to pay taxes which will
help in service delivery by the technical people .For example the Doctors, the
administrators, the Engineers and others hence fighting poverty by using taxes paid.
 The the Town Council and the district at large needs to pay the salaries for the workers in
time to avoid miss handling of the tax payers during revenue collection. Because if they
are mishandled they evade taxes buy closing their businesses and yet time spent away is
not regained hence low revenues to deliver services by the techinical persons.
 There is need to motivate the workers so that they can perform their duties willingly. In
this case , the workers will always be available to perform their duty.
 There is need to sensitize the public upon the importance of paying taxes,at least twice
every year.
 The government together with URA should check on the system of multiple taxes and at
list summarise it in one kind of tax so that the public may not get fade up and resort to tax
evasion. More so these taxes become to much for the tax payer to aford resulting into
poverty.
 More training is needed for proper handling of the tax payers by the district and the town
council revenue staff or revenue agents be briefed or trained on how to handle the public
to avoid mishandling them by chasing them up or even closing their businesess.Because
the people are the sources of revenue as business men and women.
 Accountability and transparency upon spending the revenue should be clean so as to
encourage the tax payers to pay their taxes.
 Let there be a systeme of a reward to the best tax payer of the year . This will encourage
others also never to evade taxes but pay so that they may be rewarded too hence more
revenues and hence fight poverty.
 The elderly poor people in the public should at least be rewarded every year by building
accommodation for them for those who do not have, this will be a way of motivating

27
 other business people knowing that at one moment they will be helped in case they grow
old.
 Services rendered by the civil workers more especially at Luwero Health Centre IV
should be improved. This will be a good reflection to the community that part of their
revenue is consumed by them at the health centre or any public service delivering point.
 The other sources of funding like donations from NGOs and the central government
contributions should properly be utilised and accounted for by the implementors. This
will encourage the tax payers to pay more taxes if service delivery is improved which
will lead to more taxes to be collected and hence poverty eraducation.

5.6.0 CONCLUSIONS ON SOCIAL DEMOCRAPHIC CHARACTERISTICS.

The study findings revealed that, most of the respondents 20 (57%) were aged between 29 – 39
years .This is an indicator that respondents were mature and able to answer the questions asked
them by the researcher regarding factors that lead low tax evasion in Luwero Town Council.
Majority 28 (80%) of the respondents are married , 33 (94 %) stopped at tertiary level , 15 (43%)
are Baganda.This means that most of them are responsible people, qualified for the jobs and are
Baganda people of the area where the health facility is located.

5.6.1 Conclusions on individual impacts of tax evasion and social service delivery.

All respondents 35 (100%) feel good if given time to be senstitized upon the use of revenue
collected and given time to clear their taxes. This signifies that tax payers proper handling and
proper accountability for the taxes / revenue collected in relation to poverty eradecation.

The researcher also found out that the business people are not happy with the annual increase of
taxes even when their business are not doing well. Therefore need to check on the system of
assessment depending on some one’s business every year.

5.6.2 Conclusions on institutional impacts tax evasion and socials service delivery.

Majority of the respondents 25 (71%) interviewed said are moderately motivated in terms of
factors like salaries being low compared to the work loads ,lack of allowances and so on.

The study also revealed that , majority 32 (91%) of the respondents have their job descriptions
which means they know all duties and requirements about their jobs they are running but have

28
factors that hinder their good performance which is institutional more especially at the health
centre.

The study also revealed that,all 35 (100%) of respondents have no jobs and no any qualifications
and can deliver services using the knoweledge and skills acquired during the training.25 (71%)
of the resp

Most of the respondents , 30 (86%) said they get low salaries which are not realesed also in time
hence demotivating them from good performance and yet they have so many needs they would
want to provide to themselves both at the health facility and in their homes.

Most of the respondents 22 ( 26%) said the health facility lacks enough staff compared to the
services or work load provided with in the health facility which has also affected their good
performance.

5.6.3 Conclusions on social impacts of tax evasion and service delivery.

Most respondents 29 (83 %) mentioned that they are not convesant with the local language
which is Luganda. For example the Sudans, the Lugbara, Nyarwandas, Nyankole are affected by
the language barrier since only two languages that is ; English which is officical and Luganda
which is the local one are used by both the Town Agents and the majority of the revenue payers
leading to poor perfomance.

Most respondent 26 (74%) said that the way they are handled during revenua collection makes
them hide and some times run away when they see the Town Agent hence ending up evading the
taxes. Therefore lack of good relationship between the tax payers and the Town Agent is anoter
factor leading to tax evasion.

Also every respondent 27 (77 %) complained about the multiple taxes like VAT, Trading
licenses and now the OTT imposed upon the mobile money and the internet services suprase
most of the business and they end up collupsing and that is the reason why some decide to evade
them so that their businesses can survive.

Lack of transparency and accountabilities by the tax administrators discourage some

respondents. This was mentioned by one of the respondent, he informed the researcher that in
ther are of health services, sanitation and security in Luwero town council is not upto standard
which discourages the mojority to pay taxes willingly.
29
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2. Department of Industrial Relations, Public Sector and Employee Relations (2005), the
focus on people : performance management in the Queensland public sector. Queenland:
Office of Public Service.
3. Dr. Kenneth N.Wanjau , Beth Wangari Muiruri et al (2012), Factors Affecting Provision
of Service Quality: A case of Kenyatta Hospital ; International Journal Humanities and
Social Science Vol. 2 No.13; July 2012.
4. Eisenberger; R.Armeli,S. And Pretz ,J (1998) , Can the Promise of Reward Increase
Creativity? Journal of Personality and Social Psychology , Vol.81 No.4, pp.728 – 741.
5. Farris G.F (2000) , Motivating Employees – Financial Rewards and Retention of
Technical Staff ; Proceedings of the 2000, pp. 617 -619.
6. Inter Net Surfing (Wikipedia 2016) The History of Taxation.
7. Luwero Town Council 5 years Development Plan ,2015/2016 – 2019/2020.By Ssalongo
Ssebyala Charles.
8. Local Government Councils’ Performance and Service Delivery in Uganda. Luwero
District Council Score Card (2013).
9. Kasozi H.(2001) , Worker Incentives ,motivation and performance , Management
Journal, Vol.15, No.2 pp.38 -44.
10. Keilmann T. (2006) , Evaluation of Reforms on Workers’ Motivation and performance,
Perceptions ,and Relationships with the community ; institute for International Health and
Development.
11. Kyaddondo .D and White S.R (2003), Working in Decentralised System : A Threat to
Workers’ Respect and survival in Uganda: International Journal of Planning and
Management 18: 4329 – 42.
12. Luyima P. (2013) , Human Resource Reforms for Health and Public Sector Management
,Concept Paper : Ministry of Health ,Kampala.
13. Mound R. (2005), Fighting Apathy with involvement , Management Records, Oxford
University.
14. Nicolaides C. (2001) .Are you strong enough to Face Facts? Poor Employee performance
Could Be your Fault: Management and Human Resource Discussion Paper ; Part 1 of 2.

30
15. Nina J, (2010) Extrinsic Factors Affecting Worker’s Motivation in Context of Task
Shifting : Experiences of VCT Counsellors in Ethoipia.
16. Ojokuku.R.M,Salami.O.A, (2011) Contextual influences of workers motivations on
performance in University of Iiorin Teaching Hospital.
17. Perry, J.L , Mesch, D., & Paarlberg, L. (2006) , Motivating Employees in a New
Governance Era : the performance Paradign Revisied , Public Administration Review
;Vol.66 , pp .505 -514.
18. Scheppers E,Jos D et al , (2005) Potential barriers to the use of health services among
ethnic minorities : a review : . Volume 23, issue 3, Pp. 325 – 348.
19. Shore, L.M., & Shore ,T,H., (1995), Perceieved organisanal support and organisatioanl
justice. In R. Cropanzano & K.M . karcmar (Eds.), Organisational politics , .Justice, and
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Press.
20. Strivastava, A., Locke, E.A and Bartol, K.M. (2001) ,Money and subjective Well –Being
its Not the Money , it’s the Motives, Journal of personality and Social Psychology ,
Vol.80, pp.959 – 917.
21. The Constitution of Uganda 1995 Chapter Eleven (Articles 190,191,192).
22. The Local Government Act 1997 .PART VIII- Financial Provisions 78 (1-5), 79 (1-3).
23. World Health organisatiuon (2000) , The World Health Report 2000; Health System:
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31
 APPENDICES.
APPENDIX I, CONSENT FORM.

I am Katusabe Lilian Jemima, a student at Kampala University conducting a research study to

find out the impact of tax evasion upon social service delivery in Luwero Town Council –
Luwero District. The study shall be beneficial in generating baseline information that shall be
used in future planning by the district where they will come up with measures so as to improve
and enhance performance in the town council hence deliver services to the public efficiently and
effectively. You have a free choice whether to participate or not in the study but I promise all
information got from you shall be kept confidential without disclosing your identity as a
respondent and for that case, this research is purely for study purpose.

I will therefore request you to respond to questions regarding this topic being studied if you
accept to participate.

Thank you for your cooperation.

................................................

Katusabe Lilian Jemima

Student

I have fully, understood the purpose and nature of this study and also understood that my
participation is voluntary and no consequences will result if I refuse to participate.

Name of the Respondent ………………………………………..

Date……………………….. Signature........................

Thank you so much for your participation.

32
 APPENDIX II. QUESTIONNAIRE

An interview guide on the impacts of tax evasion and social service delivery. This presents social
demographic data of the respondents and data on individual, institutional and community.
1.Social Demographic data of the respondent.
A. Location.
i) Respondent’s No:......................................................................................................
ii) Town Council / Sub County :....................................................................................
iii) Parish:........................................................................................................................
iv) LC 1/ Zone :...............................................................................................................
v) Date interviewed :......................................................................................................
B. Age of the respondent.
i (18-28)
ii (29-39)
iii (40-50)
iv (51- and above)
C. Sex
i. Male
ii. Female
D. Marital status
(i) Single
(ii) Married
(iii) Divorsed
(iv) Separated
E. Highest Level of education.
i. Secondary
ii. Tertiary
iii. 0 – Primary level
F. Religion.
(i) Protestant
(ii) Muslim
(iii) Catholic
(iv) Pentecost
33
 (v) S.D.A
(vi) None believer
(vii) Others
2) Personal / individual impacts of tax evasion upon social service delivery.
a) Do you pay taxes? Yes No
b) How often do you pay the taxes? Every day Monthly Once every year
c) For how many years have you been paying taxes?
i] Less than a year
ii] 1 year
iii]1- 5 years
iv] 5 years above

d]. Do you recall the first amount leived upon your business the first time? Yes No

e] If yes how much was it?10,000 -50,000 50,000 – 100,000 100,000 and above

f] For how long have you been paying the above amount ?

i] 1year 1-5 year 5 and above

h] How often do you receive sensitization upon revenue collection?

Every month Quarterly Once in a year Never

i] When did you last attend any form of sensitization upon revenue collection?
i]. 2 weeks.
ii]. 4 weeks
iii] 3 months
iv] 6 months and above.
v] Do not remember
vi] Never
d) Is the tax imposed upon your business constant or it keeps changing?
Constant Changes
e) If it keeps changing, does it increase usually or it decreases?
It increases It decreases
f) Does it favour your business? Yes No Moderate
34
 g) If it does not favour your business do you complain to the responsible people?
Yes No
h) Do they help you by re-assessing it Yes No

3. Institutional impacts of tax evasion and social service delivery.

a) Do you always meet the target as par the budget for a given financial year so as to enable
your deliver service appropriately?
Yes No
b) Is the town council well resourced especially in the department of revenue collection?
Yes No
c) Are you always facilitated by other sources of funding so as to deliver services?
Yes No
d) If yes how often? Monthly Quarterly Once in a year
e) If such facilitation / findings are provided is the public allowed to know about it?
Yes No
f) Do you always carry out sensitization upon revenue collection to the public?
Yes No
d) How often do you do it?
i) Monthly
ii) Quarterly
iii) Once every year
iv) Never
d) Is there any grace period given to the tax payers after assessment period?
Yes No
f) How much period do give them? 1 week 1 month 4 months
g) Are you always supervised by outside tax authorities like URA? Yes No
h) If yes how often? Every month Quarterly Once a year
i) Do you always get complaints from the tax payers concerning high taxes or multiple
taxes? Yes No
j) If yes how do you handle them?

35
 Refer to the tribunal committee
Re-assess them
Get some money from them and let them move on.
Make them pay by force
Exempt them from paying
a) Do you meet any challenge as regards language Yes No

b) Do you face any challenge as regards political influence when collecting taxes from the
public? Yes No I don’t know

36
 APPENDIX III: BUDGET

A proposed budget of the study to be followed, 2018.

S/No ACTIVITY ITEMS QTY UNIT COST TOTAL

Typing. 1copy 35,000/= 35,000/=
Transport 1 person 10,000/= 10,000/=
01 Proposal development and Photocopying. 3 copies 3500/= 10,500/=
submission Flash disk 1 flash disk 20,000/= 20,000/=
Binding. 3 copies 3,000/= 9,000/=
Editing 2 copies 17,000/= 34,000/=
Transport 1 pple x 2 days 5,000/= 10,000/=
Lunch 1 person x 2 5,000/= 10,000/=
Actual data collection and days
02 compilation. Stationery 40 17,000/= 17,000/=
questionnaires
and 2 pens.

Editing and 1copy 38,000/= 38,000/=

printing.
Final Report writing and
03 submission Photocopying. 3 copies x 38 3,800/= 11,400/=

Binding. 3 copies 20,000/= 60,000/=

Total 264,400/=

37
 APPENDIX IV: WORK PLAN.

A proposed work plan for the researcher upon the impact of tax evasion and social service
delivery in Luwero Town Council, 2018.

S/No ACTIVITY FEBRUARY MARCH JULY AUGUST SEPTEMBER

Proposal development
01 and submission

Actual data collection

02 and compilation.

03 Final report writing.

04 Report submission.

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