RISK EXPOSURE AND REVENUE PERFORMANCE: A CASE STUDY OF UGANDA REVENUE AUTHORITY

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RISK EXPOSURE AND REVENUE PERFORMANCE: A CASE STUDY OF UGANDA REVENUE AUTHORITY

ABSTRACT

The research set out to explain why Uganda Revenue Authority fails to collect all collectible revenue; and if risk exposure (the susceptibility of the organization to the adverse effects associated with the environment within which she operates) could be the reason for the gap in revenue performance. The purpose of the study was to examine the relationship between Risk Exposure and Revenue Performance in Uganda. The study adopted a cross-sectional and descriptive format with a correlation inclination; a purposive Sampling design was used to select a Sample of 100 respondents comprised of 50 URA staff and 50 Tax payers across all taxpayer segments in Uganda. The researcher used both primary and secondary data. Pearson’s correlation coefficient and regression analysis were used to establish the relationship between the study variables, with chi-square tests utilized to refine the analysis of the findings.

The study established that there is a plausible risk exposure facing tax administration in Uganda manifested by such risks as technological, operational, regulatory, fraud, reputation and employee risk. The results showed that the Risk Exposure can explain 20.3% of the variance in Revenue Performance.

It was recommended that revenue bodies should develop a systematized approach for resolving major compliance risks; with a robust and flexible risk management framework to cope with the volatile circumstances that characterize the business environment within which they operate.

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