THE EFFECTS OF TAX IDENTIFICATION NUMBER ON REVENUE COLLECTION

Abstract

This study aimed to examine the effects of the Tax Identification Number (TIN) on revenue collection at Moshi Municipality. Specifically, the study sought to assess: the efficiency of tax administration through TIN on revenue collection, the effect of tax compliance through TIN on revenue collection, and the impact of taxpayer monitoring through TIN on revenue collection in Moshi Municipality. The study adopted a positivist philosophy, employing a quantitative research approach that involved the systematic collection and analysis of numerical data. A descriptive research design was used to capture data at a specific point in time. The targeted population consisted of 38261 participants, including tax officials, business owners, and TIN registrants, with a sample size of 396 respondents. Simple random sampling was applied to ensure inclusivity and representativeness across all respondent categories. Data collection tools included structured questionnaires with 5-point Likert scale questions to gather detailed responses. Both descriptive analysis and multiple linear regression analysis were applied to analyze the data. The findings revealed a significant positive relationship between TIN-based tax administration efficiency, tax compliance, and taxpayer monitoring on revenue collection. Efficient tax administration through TIN was found to streamline the revenue collection process, while improved tax compliance through TIN registration increased revenue generation. Effective taxpayer monitoring also contributed positively by reducing evasion. However, challenges in enforcing compliance and ensuring accuracy in taxpayer data were identified. The study concludes that the TIN system significantly enhances revenue collection in Moshi Municipality. It recommends strengthening taxpayer education programs, improving the monitoring system, and addressing compliance challenges to further optimize revenue collection outcomes. The study underscores the importance of the TIN system in creating a transparent and efficient tax environment for long-term revenue sustainability