TAXATION AND THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NAKAWA DIVISION, KAMPALA, UGANDA
SME Performance: This concept refers to the reviewing of the overall enterprise performance
and determining how the enterprise can better reach its goals and objectives (Bruce & Mohsin,
2006).
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Tax: “This concept refers to a financial charge or other levy imposed upon a taxpayer (an
individual or legal entity) by a state, or the functional equivalent of a state, such that failure to
pay is punishable by law”(Ddumba-Ssentamu, 2004).
Tax compliance:“This refers to the willingness of individuals and other taxable entities to act in
accordance within the spirit as well as the letter of the tax law and administration without the
application of enforcement activities”(Sophia Naroog Kuug, 2016).
Tax Holiday:“A temporary reduction or elimination of a tax (a tax expenditure)”(Chuenjit,
2014).
Tax incentives: “This refers to thespecial provisions of the tax code granting preferential
treatment to certain activities, investments or taxpayers”(Mayende, 2013).
Tax Refund: “A tax refund or tax rebate is a refund of taxes when the tax liability is less than
the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less
than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus
the refundable tax credits that they claim. (Tax refunds are money given back at the end of the
financial year.)”(Barr, 2005
In Uganda, the history of taxationcan be traced in times of theinitial British colonial administrators which involved“compulsory public works such as road construction, the building of administrative headquarters and schools” among other works. The hut tax opened the genesis of formal taxation in the early 1900s.