Abstract:
This study examines factors affecting taxpayer willingness to pay tax- a case study on SME’s
located at Arusha region. Hence, this study offers insights into better understanding on the
factors affecting taxpayers’ willingness to pay tax. The researcher was guided by three
specific objectives, hereby are, analyzing taxpayer’s perception on government spending, to
examine the effect of taxpayer ethics on tax compliance and to determine the influence of
Taxpayer’s awareness on penalty and offence on the tax compliance. Qualitative research
approach was adopted to collect data in order to see the world from the participant’s
perspective and the researcher is Interested on how taxpayer experience tax compliance.
Population was 133 as my sample size and sampling technique was purposefully sampling to
choose respondent who are expert, experienced, willing, available and accessible at time
from random selection. Data analyzed by thematic analysis and repeating of answers pay
attention. The finding shows that, when there is proper utilization and transparency on money
collected through payment of tax then SME comply with tax law. Other respondent believes
that, it is responsibilities of the government to construct hospital, purchase airplane, roads
and bridge. Also, at the time of assessment and physical survey when conducted regular
education should be provided at the scope of keeping proper business record, at the time of
closing business what to do in order to not be fined or penalized with TRA.
