Abstract:
Tax avoidance signifies roughly of the confusing hitches facing the Tanzanian economy.
Whenever authorities decide to charge taxes, individuals and firms try to avoid paying them
due to various factors. The study sought to assess the relationship between four factors that
included Nature of the business, Education level, Firm size, Tax system on how they
influencing the practice of tax avoidance in business income, case study of Arusha City
Council. Since there is may factor that influence tax avoidance researcher has choose this as
factors, the study adopted a descriptive research design. Quantitative research approaches
was used to carry out the research study whereby probability sampling was employed to
obtain the respondents. Primary data will be obtained through a structured questionnaire from
130 respondents at Arusha City council while the secondary data was obtained through
documentary review. (SPSS)-V20 software used to scrutinize data over statistical tables. Data
findings from the study revealed that all specific objectives have a positive influence on the
main objective. this research study concludes that the independent variables (Nature of
business, Level of education, firm Size, tax system,) are the predictors of dependent variable
(tax avoidance in business income at Arusha City Council), Finally this study recommends in
edict to diminish the practice of tax avoidance in business income following steps should be
followed by Appropriate audits of business, lower tax rates, actual penalty and interest
systems, less incentive provisions, stringent strategy against the tax avoider, heavy pecuniary
fine and incarceration against tax evaders, governments transparent and accountability,
eliminate corruption , Provisions of taxpayers services, business identification information
operated , prizes to persons who provide information about tax evaders, massive public
awareness,
