Abstract This study focused on Tax Administration and Revenue Generation in Tororo District Local Government A case study of Malaba Town Council The objectives of the study include; to establishing the level ofTax Compliance among Ugandan Tax payers. to assess the performance of domestic revenue collection in Uganda and to establish the relationship between Tax Compliance and Domestic Revenue Collection. Thefindings ofthe study revealed that there is a strong positive relationship between Tax Compliance and Domestic Revenue Collectiom Data was collecied using seV administered questionnaires. The study used strat4fted and purposive sampling techniques to draw representative samples and 40 respondents were involved in the study The study undertook to find out the level of tax compliance and it was found out that compliance is still low among the tax payers and they attribute this to the high tax rates, taxpayers’ attitude towards URA, the large informal sector which encourages tax evasion. The low level oftax compliance was also attributed to the low compliance culture. The study also found out that the cost ofrevenue collection is loit~ Large Taxpayer ~s Office increased domestic revenue collection, and URA experiences and registers tax arrears which also affects its performance. The study also recommends the following; tax administration so as to provide individuals andgroups with guidance on how to improve bookkeeping standards and tax returns, tax counseling offices should be established country wide, procedures for filing returns and applications. Tax education to create awareness among tax payers. and awarding ofprizes to compliant tax payers.