Browsing by Author "Soka, Joachim"

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    Factors influencing tax compliance among SMEs in Moshi municipality
    (Mzumbe University, 2019) Soka, Joachim
    This study was conducted to analyse factors influencing tax compliance among SMEs in Moshi municipality. The specific objectives were to describe socioeconomic characteristics of SME owners; examining tax morale and attitude towards the tax system within SME and to analyse factors influencing tax compliance by SME in the study area. A sample of 77 small and medium enterprises was surveyed. Descriptive statistics were used to describe socio-economic characteristics of the SME owners and examining tax morale and attitude towards the tax system by Small and medium enterprises ME owners in the study area. Multiple linear regressions were used to analyse the factors influencing tax compliance by small and medium enterprises owners in the study area. The analysis shows that the study area is dominated with small sized enterprises compared to medium sized industries; with more males compared to females with age range 45 to 60 years old. In addition, the analysis shows that many SMEs in the study area do not have taxpayer education. The analysis also shows that there is high morale to pay tax by SME owners, and the medium enterprise owners showed to have favorable attitude towards tax administration and tax authority while small enterprises owners showed to have an unfavorable attitude. Analysis of factors influencing compliance shows that compliance costs, which involve traveling costs and tax filling cost, reduce tax compliance in the study area. Similarly, the loopholes for tax evasion also reduce tax compliance because SME owners feel easiness of not paying taxes. On the other hand, tax awareness and tax knowledge positively affect tax compliance in the study area. The study requires TRA to increase taxpayer education so as to increase compliance; also, TRA should improve ways of collecting tax so as to reduce compliance cost such as traveling and tax filling which acts as disincentive to tax compliance. Furthermore, TRA could be stricter in tax collection and reduce all loopholes which SME owners might take advantage of and become less compliant. Finally, TRA could conduct seminars on record keeping related to income, expenditure, and tax filling; because such awareness has shown a strong relationship with compliance