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In this research report, the first chapter has been covered by the introduction , also under chapter two it has covered the conceptual legal frame work of the research report thereto, but Chapter three shows the data presentation, chapter four covers findings and data analysis as well as under Chapter five shows the conclusion and recommendation herewith. It is expected by the society that they paying tax to raise government revenues so that in return the society is provided with all the services from the government, these are social services , maintaining law and order, ensuring defense and hosting other undertakings which the state feels are better be provided by itself, like health services. As stated above the society have their expectations when paying tax, however there are many tax payers who evades taxes not withstanding that there are penalties for that act simply because they feel that the government is not performing well in providing the society with social needs and end up using revenue on other issues. Not all citizens have positive attitude to the act of paying tax, this may be caused by many factors most of which are caused by the government itself by failing to provide social services to the satisfaction of the citizens. Therefore citizens would wish to use any means either to reduce the Tax burden or evade paying tax. Taxation in Tanzania is based on law, under the Constitution of the United Republic of Tanzania no tax of any kind shall be imposed save in accordance with a law enacted by In this study, most of the issues on tax avoidance have been addressed and analyzed including the loopholes that still exist to attract taxpayers to plan to avoid tax and solutions to problem.
This study recommends for amendment to section 33 of the Income Tax Act as it has been made amendment under section 35 of the income Tax Act1 so that it can specify methodology for determining what constitutes an arm‟s length price, there should be in place provisions requiring taxpayers to prepare transfer pricing documentation. At the same time the government should timely act on the enactment of tax instruments whenever loopholes are detected by TRA and other stakeholders |
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