Effect Of Electronic Tax Return Filing on Tax Compliance Towards Revenue Collection in Tanzania

Abstract

This research study investigated the impact of electronic tax return filing on tax compliance and its subsequent effect on revenue collection in Tanzania. The research utilized both primary and secondary data sources, with questionnaires and interviews collecting primary data and secondary data sourced from the TRA administration and relevant documents. Employing a descriptive research design, the study aimed to gain a comprehensive understanding of the subject and address the research objectives effectively. A stratified sampling technique was employed to meticulously select taxpayers from various subgroups with common characteristics or knowledge. The study adopted a combination of exploratory and explanatory approaches to comprehensively evaluate the intricate relationships between pertinent variables. Through thorough analysis of primary and secondary data, the research intends to uncover the nuanced impact of electronic tax return filing on tax compliance and its direct influence on revenue collection in the Tanzanian context. Examining large-scale taxpaying entities and government operations, the research provided valuable insights for both taxpayers and governmental authorities. The study sought to illuminate the multifaceted effects of electronic tax return filing on tax compliance and revenue collection in Tanzania. The comprehensive analysis enhanced the understandings of how digital tax returns filing mechanisms can potentially reshape compliance dynamics and revenue generation strategies. Findings revealed a positive and significant impact of the e-tax system on tax revenue generation. Additionally, an increase in the number of registered taxpayers was found to positively influence tax revenue. This study contributes to the awareness of both large taxpayers and the government, indicating that the use of the e-filling system had an impact on reducing tax compliance costs and assisting the government in collecting taxes in cost-efficient ways.