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The study was conducted at Tanzania Revenue Authority (TRA) –Mwanza Tax region office with the focus on assessing the Determinants of Tax Evasion in Tanzania.The objective wasto examine the influence of demographic determinants on Tax evasion, determine the influence of demographic determinants on Tax evasion, to determinethe influence of demographic determinants on Tax evasionThe study employed Explanatorystudy design;the target population was TRAstaff. But the main focuses were staffs from department of domestic revenue and compliance unit. Purposive/judgmental sampling technique was used to select a sample of 20 TRAstaffs. In this study data was collected using questionnaire and interview methods of data collection.The study findings regarding,analysis shows that non-economic determinants have the strongest impacton tax evasion in comparison with economic determinants. Thesevarious determinants into mixed models of tax evasion, our understanding is enhanced about tax evasion. Complexityof tax lawsis found to be the most important determinant of tax evasion. Other significant determinants are education, income source, fairness and tax morale. The results,show that the lower the level of complexityof tax lawsand the higher the level of general education, services income source, fairness and tax morale, the lower the level of tax evasion across. The results have implications for governments that seek to reduce the level of tax evasion in society. A simple tax system can reduce tax evasion. Recommendations were given by the researcher to the TRA office at Mwanza must enhance strong block management system as a strategy to identify eligible traders who are supposed to be in the VAT system and all other traders who are conducting business but do not pay tax be registered. This can be possible through employing qualify, trained and motivated personnel with an investigative mind so as to attain desired output. This will create good atmosphere of fair competition among the business community, hence enhances revenue generation. TRA office in Mwanza together with the recommendation mention above should use stiff punishment for those who practice this act of tax evasion once they are being identified according to the law and register them as the Tax Laws stipulates |
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