An Evaluation of the Challenges Facing TRA on Income Tax Collection in Tanzania.

Mohamed, Robson (2024) An Evaluation of the Challenges Facing TRA on Income Tax Collection in Tanzania. Masters thesis, The Open University of Tanzania.

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Abstract

This study has discussed an evaluation of the challenges facing the Tanzania Revenue Authority on income tax collection in Tanzania. In this work, the researcher has employed documentary and empirical legal research methodology. Simple random sampling was used to select 30 out of 45 respondents (TRA Staff and taxpayers). The data were collected through open and close-ended questionnaires. The findings of the research revealed that there are challenges facing TRA in income tax collection. Once the income tax collection becomes challenging, the government in hand fails to acquire enough revenue to actualize its financial plans and responsibilities. This study therefore concluded that political pressure, tax evasion, tax avoidance, tax assessment objection, corrupt acts, lack of essential tax documents, non-voluntary tax compliance, administrative inefficiencies, tax exemption, poor perception of income tax collection, resistance to the uses of EFDs Machines, frequent changes to tax laws and low tax base are among the key challenges facing Tanzania Revenue Authority on income taxes collection in Tanzania. The study recommends that the management of the Tanzania Revenue Authority should come up with more strict income tax legal framework to curtail the challenges. Tanzania Revenue Authority strategies should be based on the analysis of the performance of the existing strategies such as the adoption of automated systems, progressive policies implementation and Tanzania Revenue Authority staff ethics to increase tax compliance and revenue collection. Establishing the link between culture and voluntary tax compliance will likely require more study.

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