A Research Proposal Submitted to the Faculty of School of Business
In Partial Fulfillment of the Requirements for Award of Bachelor Degree of Accounting and Finance in Business Sector (BAF-BS) in Mzumbe University.
Taxes are the most important source of governmental revenue. The government should be able to ensure that tax was efficiently collected. Thus tax compliance among small traders is very poor. The study aimed at assessing the factors influencing tax compliance among small traders in Tanzania, in order to achieve this, the case study was conducted at TRA, Morogoro. The objectives of the study are to assess the determination of how fines and penalties influencing tax compliance among small traders, to assess the relationship between tax education and tax compliance among small traders, and to assess the relationship between perception and attitudes and on the level of tax compliance among small traders.
Interview, questionnaires, observation and documentary review method were used to get information from the respondents. Data collected were analyzed descriptively by using SPSS (Statistic Package Social Science) computer software. The sample size involved a number of small traders, a sample of 60 respondents were drawn from a targeted population and the population of the study was expected a number of small traders in Morogoro Municipal.
Also frequency and percentage were used in calculation and those presented in tables. From the findings it was found that all determined factors have positive relationship to tax compliance. Therefore the higher imposed of fines and penalties, lead higher tax compliance, the more tax education the higher rate of tax compliance and the positive perception and attitudes towards tax, lead the higher tax compliance.
However the study recommends that TRA imposed the higher fines and penalties to those who avoided paying taxes, also TRA improved tax systems for the purpose to build up all small traders attitude toward tax as well as should ensure that they provide more education about tax to their taxpayers.