Effectiveness of E-Filing System on Improving Tax Collection in Tanzania A Case of Ilala Tax Region.

Abstract

This dissertation analyses effectiveness of e-filing system on improving tax collection in Tanzania: A case of Ilala tax region. The researcher adopted crosssectional descriptive design where mixed approach was applied to collect qualitative and quantitative data using questionnaire and interview guide. The study used both primary and secondary, and sample size was 100 taxpayers. Descriptive statistics and content analysis were used to analyse quantitative and qualitative data respectively. The study was guided by expected utility theory, the theory of reasoned action, the theory of planned behavior, diffusion of innovation theory and technology acceptance model. The findings show that e-filling had increased tax submissions at Ilala tax region. The findings show that there is high acceptability of e-filing as a tool which has enhanced the tax returns submissions. The findings further reveal e-filling to be effective in tax and duties collection at Ilala tax office as it enhanced the convenience of taxpayers. Taxpayers were found in agreement that e-filling is reliable, easy to use, accessible, reliable, accurate and efficient in submissions of tax returns. Also, the findings indicate that e-filing have increased tax compliance as it reduces cost of compliance. Based on the findings the study concludes that e-filing system has a positive contribution in ensuring efficient tax and duties collection. The study’s policy implication deduced from this study are provided with options that will be of greater value in the review of taxation and ICT policies, as there is a need to make them effective and friendlier to taxpayers. Practically, Government and other institutions dealing with revenue need to make it mandatory for tax submission to be done using e-filling system. Moreover, the study recommend to TRA that it should organise more training for its staff and taxpayers across all tax regions so that performance and adoption rate of e-tax filing increases. To the government it is recommended to improve the infrastructures which support e-filing system particularly internet coverage across the country.