Abstract:
Tax authorities of different countries in recent times, made various improvement, which ensures
tax compliance, is achieved at maximum. The improvements made includes replacement of
previous manual filing of tax return to online filing of tax return through the use of E-filing system.
E-filing system is viewed as more efficient, convenient and time saving compared to previous
manual filing of tax return. Therefore, the study aimed at assessing the effectiveness of E-filing
system on tax compliance among wholesalers of Arusha tax Region. The specific objectives of
the study were to determine the impact of complexity of E-filing system on the tax compliance
of the taxpayers. The other objective was to examine the influence of taxpayer’s awareness and
to evaluate the cost of E-filing system on tax compliance. Detailed of tax compliance was
provided together with theories in relation to the study. The theories used are technological
acceptance model, ability to pay benefit theories. Also brief explanations of related literature
was provided. The study used case study design and gathered relevant information by using
primary data collected using structured questionnaires. Population targeted for the study was
wholesaler’s taxpayers at Arusha Tax Region whereby, a sample of participants was selected.
Outcomes of this research study was presented using graphs, percentages, frequency
distribution tables, mean, standard deviation and other statistical test, which summarized the
results in order to draw conclusion. The study applied quantitative data analysis techniques.
Moreover, the study used SPSS for scrutiny the data guided by statistical models. The findings
shows that, E-filing system affects tax compliance among wholesaler traders. The study
concludes and recommended that, improving user friendliness of the system, simplifying
registration process, provision of assistance and enhancing system accessibility as strategies
for improving E-filing system.
