Abstract:
ABSTRACT
This study seeks to examine the determinants of tax evasion on revenue collection performance in Tanzania: a case of Tanzania revenue authority in Iringa region. This study adopted a cross-sectional research design. A total sample of 36 staffs from TRA and tax payers were included in this study. Both quantitative and qualitative techniques were used. Both interview, questionnaires and secondary data were used in this study. The study concluded that false information was one among the mode/techniques used by Tax payers to evade Tax in the study area, followed by the VAT fraud, misclassification of commodities and smuggle of goods, bribery of tax officials. The study further concluded that, smuggling is an activity which involves the importation or exportation of goods with the objective of evading taxes, this involves importing or exporting goods illegally, usually to avoid paying duty on them. The types of smuggling that are common relate to products such as drugs, illegal alcohol or tobacco sales. On the second objectives, the study concluded that tax policies and tax systems was the factor that influences Tax evasion in Iringa region, followed by the corruption, higher Tax rates. It was concluded that Tax officials can abuse their position to issue tax exemptions, apply lower tax rates, un-register individuals from the tax registers in exchange for lower “private” tax, among others. On the last objective, the study concluded that the study concluded that Majority of the respondents strongly agreed that provision of tax education to taxpayer would mitigate Tax evasion in Iringa region, followed by the application of technology, penalties set for tax evaders and psychological egoism. It is recommended that, there is a need to engage in massive public awareness as far as the total pay taxes are concerned. TRA in Iringa needs to exploit a lot of possible avenues like radio programs, Seminars and market officials in order to sensitize the public about the benefit of paying taxes. This will play an important role in improving revenue collection. More so, tax rates should be
