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The overall research problem addressed in this study is that, despite the existence of
the legal framework which requires the tax payers to keep record, there remains poor
record keeping among the tax payers. Therefore, this study aimed at assessing poor
record keeping and tax compliance among taxpayers in Tanzania Revenue Authority
(TRA), specifically at Kariakoo Tax Region in Dar Es Salaam. Specifically, the
study sought; to find out the factors hindering citizens to keep their person business
transaction records for effective use in Tanzania; to find out the effects of ineffective
person business transaction records in Tanzania; to find out the reasons that prohibit
taxpayers to comply with Tax estimates provided by TRA and; to develop a
framework for effective use of person business transaction records in Tanzania. The
study employed records continuum theory to provide an understanding regarding
business transaction records keeping process. Methodologically, it employed a case
study design, whereas purposive and simple random sampling techniques were used
to draw a sample size of 131 respodents. Interview and semi structured
questionnaires were used. The study also employed descriptive analysis for
quantitatve data and thematic analysis for qualitative data. Findings indicated that,
lack of education on tax record keeping, low level awareness, lack of proper training
and ignorance of taxpayers are the factors failing citizens to keep their person
business transaction records for effective use in Tanzania. It was also revealed that,
poor management and decision making, tax avoidance and loss of revenue are the
effects of ineffective personal business transaction records in Tanzania. Furthermore,
findings indicated that, lack of proper guidance, ignorance, low level of education,
inconsistent tax assessment and VAT are the reasons that prohibit taxpayers to
comply with tax estimates provided by TRA. The use of EFD, provision of tax
education and tax obligation were suggested framework for effective use of person
business transaction records in Tanzania. The study concludes that there is the
relationship between record keeping and tax compliance. As such, there is a need for
policy makers to ensure that the policy stipulates the desire for frequent provision of
education among taxpayers as mandatory in order for the taxpayers to keep their
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