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Tax Education, Tax Awareness and Tax Compliance among Small and Medium Scale Businesses in Mbarara City. (issue 10)

Tax compliance in SMEs remains poor with taxing being done in such a way that takes their income with most countries not
taking their survival into consideration. The study sought to establish the relationship between tax education, tax awareness
and tax compliance in SMEs in Mbarara City. The study used a cross sectional research design to study 1864 SMEs from which
a sample size of 319 SMEs was determined using the Krejcie and Morgan table. Simple random sampling was used in selecting
respondents from whom data was collected by use of a questionnaire. Data was analysed using SPSS V.23 from which
correlation coefficients and regression coefficients were generated. The study established that there is a positive significant
relationship (r=.704) between tax education and tax compliance. The study also established that there is a positive significant
relationship (r=.555) between tax awareness and tax compliance of SMEs in Mbarara City. The study concluded that there is
a positive significant relationship between tax education, tax awareness and tax compliance of SMEs in Mbarara City and
recommended that SMEs should employ personnel with adequate as regards taxation policies.

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