The impact of tax evasion on revenue collection performance in Tanzania: A case study of Tanga tax region
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Date
2014
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Publisher
Mzumbe University
Abstract
This study is about the impact of tax evasion on revenue collection performance in Tanzania. It examined specific factors for rising tax evasion and establishing mechanism to curb the problem. The study was conducted in Tanga tax region. Data were collected through documentary analysis, questionnaires and interviews. Quantitative data were analyzed by means of descriptive statistics using SPSS programme. Qualitative data were subjected to content analysis. The findings showed that the amount of tax collected in Tanga tax region from 2011 and 2013 did not meet the target of tax collection as it was expected. Many factors were associated with tax evasion problem namely high tax rate, complexity of tax laws systems and procedures, taxpayer’s perception towards government ability to utilize tax collection for social welfare, limited resources and capacity of tax administration, low literacy and lack of tax education, poverty and nature of business/ production, the legal provisions in Tax and a low tax Morality. The study also found that in order to overcome tax evasion Tanga tax region should provide more powers of access to information, opportunities from voluntary disclosure, prosecution and imprisonment of tax offenders and publication of tax offenders. Based on the findings and analysis on the data, it can be concluded that there is a many factors for rising of tax evasion and its impact on the economy is high in Tanzania and Tanga tax region in particular. The government must focus in the education of citizens as an instrument to guide them to best understanding to the tax laws and the role of tax in enhance and flourish the society. The level of income must be taken into account. Furthermore, the government must pay more attention about the tax officials, by enhance their salaries, and implement sufficient incentive systems. In addition, tax rate must be at a reasonable level which does not overburden taxpayers, whether individuals or entities. The study recommended among others that the current tax procedures, law should be amended to provide for establishment of a professional and independent tax tribunal that could hear matters of fact and law in relation to the assessment under appeal.
Description
A dissertation submitted to Mzumbe University as a partial fulfillment of the requirements for the award of the Master’s Degree of Business Administration (MBA) in Corporate Management of Mzumbe University.
Keywords
Revenue collection performance, Tax evasion, Revenue, Taxation
Citation
APA