The Moderating Effect of Corruption on Deterrent and Socio- Psychological Factors for Tax Compliance: A Conceptual Model for Small and Medium Enterprises in Uganda

Abstract

Tax compliance is the desire for every nation world over. Although investigations have been done into the effects of deterrent and social psychological factors on tax compliance, inconsistent results have been reported, suggesting that a moderator might explain the mixed results. Intrinsically, the main aim of this research is to propose the addition of the perceptions of corruption as having a role to play in moderating the relationships between first, deterrent factors and tax compliance and second, the social psychological factors and tax compliance behaviour among SMEs in Uganda. Once validated, the proposed model will be valuable to government in policy formulations and evaluation, Uganda Revenue Authority and other regulatory bodies, and practitioners.

Keywords: corruption, Uganda, tax compliance, deterrent factors, trust, social factors, SMEs

DOI: 10.7176/EJBM/12-22-07

Publication date:August 31^st 2020