voluntary tax compliance behavior among SMEs in Dar es salaam, Tanzania
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Mzumbe University
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A Dissertation Submitted in Partial Fulfillment of the Requirement for the
Degree of Master of Business Administration – Corporate Management of
Mzumbe University
This study aimed at examining the influence of economic factors towards taxpayers’ voluntary compliance behavior by targeting SMEs in Dar es Salaam, Tanzania. Specifically, the study determined the extent of tax compliance in the selected tax region, examined the influence that perception on government spending has on taxpayers’ voluntary compliance behavior, examined the influence of the individual financial position on voluntary compliance behavior among taxpayers in the selected region, examined the influence that perception on equity and fairness of tax rate on taxpayers’ voluntary compliance behavior in Tanzania, and to found out whether or not auditing influences taxpayer’s voluntary compliance behavior in Tanzania. The study applied a cross – sectional research design whereby the mixed approach that combining quantitative and qualitative approaches were adopted. Data was collected from 100 conveniently selected taxpayers in Kinondoni tax region through the survey questionnaire method whereas interview method were used to gather data from TRA officials who work in Kinondoni tax region. The collected data were analyzed using descriptive and inferential statistical analyses. In analyzing the relation among the variables, the study used correlation and regression analyses. The findings revealed that economic variables such as perceptions about government spending, individual financial position, perceptions on equity and fairness and probability of being audited had positive significant relationship with taxpayers’ voluntary compliance behavior. The perception on government spending has a high significant influence to individual taxpayers’ voluntary compliance behavior followed by probability of being audited. The study recommends for wisely and fairly spending of government revenue to all regions, continual provision of tax knowledge to the public and jointly provision of business management and financial discipline skills to SMEs by various institutions.
This study aimed at examining the influence of economic factors towards taxpayers’ voluntary compliance behavior by targeting SMEs in Dar es Salaam, Tanzania. Specifically, the study determined the extent of tax compliance in the selected tax region, examined the influence that perception on government spending has on taxpayers’ voluntary compliance behavior, examined the influence of the individual financial position on voluntary compliance behavior among taxpayers in the selected region, examined the influence that perception on equity and fairness of tax rate on taxpayers’ voluntary compliance behavior in Tanzania, and to found out whether or not auditing influences taxpayer’s voluntary compliance behavior in Tanzania. The study applied a cross – sectional research design whereby the mixed approach that combining quantitative and qualitative approaches were adopted. Data was collected from 100 conveniently selected taxpayers in Kinondoni tax region through the survey questionnaire method whereas interview method were used to gather data from TRA officials who work in Kinondoni tax region. The collected data were analyzed using descriptive and inferential statistical analyses. In analyzing the relation among the variables, the study used correlation and regression analyses. The findings revealed that economic variables such as perceptions about government spending, individual financial position, perceptions on equity and fairness and probability of being audited had positive significant relationship with taxpayers’ voluntary compliance behavior. The perception on government spending has a high significant influence to individual taxpayers’ voluntary compliance behavior followed by probability of being audited. The study recommends for wisely and fairly spending of government revenue to all regions, continual provision of tax knowledge to the public and jointly provision of business management and financial discipline skills to SMEs by various institutions.
Keywords
Taxpayers’ voluntary -- SMEs Dsm