Abstract
Purpose: The purpose of this study was to investigate the effectiveness of the e-filing system in improving tax collection in Tanzania.
Design/Methodology/Approach: The study was conducted in Ilala tax region in Ilala district, Tanzania, which comprises four (Tanzania Revenue Authority) TRA tax centres namely, Buguruni tax centre, Samora tax centre, Shaurimoyo tax Centre and Mnazi mmoja tax centre. This study was conducted in all four tax centres. The study adopted cross-sectional descriptive design where a mixed approach was applied to collect qualitative and quantitative data using questionnaires and interview guides. The study used both primary and secondary, and the sample size was 100 taxpayers. Descriptive statistics and content analysis were used to analyse quantitative and qualitative data respectively.
Findings: The findings show that e-filling had increased tax submissions in Ilala tax region. The findings show that there is high acceptability of e-filing as a tool which has enhanced tax return submissions. Moreover, the findings of this study acknowledge e-filling to be effective in tax and duties collection at Ilala tax office. In addition, the study found that e-filling had enhanced the convenience of taxpayers. In these taxpayers were found in agreement that e-filling is reliable, easy to use, accessible, reliable, accurate and efficient in the submission of tax returns. Also, the findings indicate that e-filing has increased tax compliance as it reduces the cost of compliance.
Implications/Research Limitations: This study had some limitations which warrant rectification in future studies. Firstly, this study was conducted in a single tax correction region of Ilala, Tanzania. Therefore, future studies should consider expanding the geographical area by covering more than one tax region. Also, this study used only descriptive statistics which cannot estimate of causal-effect relationship. To gauge the effectiveness of e-filling on tax collection future study is suggested to apply inferential statistics such as regression and structural equation modelling, which are powerful models to predict causality.
Practical Implications: The findings of this paper would be useful as will awaken the Government and other institutions dealing with revenue collection to make it mandatory for tax submission to be done using an e-filling system. The findings of this study are expected to help TRA in assessing the e-filing system and make sure the current e-filling system is improved for an efficient and effective filing process and promotion of tax collection amongst taxpayers.
Originality/Value: Therefore, this study intended to fill this gap by analyzing the effectiveness of the tax e-filling system on improving tax collection in Ilala tax region, Tanzania by focusing on small taxpayers.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Ajzen, I.: The theory of planned behavior. Organ. Behav. Hum. Decis. Process. 50(2), 179–211 (1991)
Bird, R.M.: Tax challenges facing developing countries. Institute for International Business Working Paper (9) (2018)
Chaudhry, I.S.: Determinants of low tax revenue in Pakistan. Pak. J. Soc. Sci. 30(2), 439–452 (2010)
Davis, F.D.: Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Q. 13(3), 319–340 (1989)
Fishbein, M., Ajzen, I.: Belief, Attitude, Intention and Behaviour: An Introduction to Theory and Research. Addison-Wesley, Reading (1975)
Malekani, A.A.: Access to, use and challenges of ICTs in secondary schools in Tanzania: a study of selected secondary schools in morogoro municipality. J. Inf. Knowl. Manag. 9(2), 44–57 (2018)
Sifile, O., Kotsai, R., Mabvure, T.J., Desderio, C.: Effect of e-tax filing on tax compliance: a case of clients in Harare, Zimbabwe. Afr. J. Bus. Manag. 12(11), 338–342 (2018)
Venkatesh, V., Morris, M., Davis, G., Davis, F.: Users’ acceptance of information technology: toward a unified view. MIS Q. 27(3), 287–294 (2003)
Sichone, J., Milamo, R.J. Kimea, A.J.: The influence of facilitating conditions, perceived benefits, and perceived risk on intention to adopt e-filing in Tanzania. Bus. Manag. Rev., 50–59 (2017). ISSN 0856-2253. eISSN 2546–213X
Azmi, A.A.C., Kamarulzaman, Y.: Adoption of tax e-filing: a conceptual paper. Afr. J. Bus. Manag. 4(5), 599–603 (2010). http://www.academicjournals.org/AJBM
Bernasconi, M., Zanardi, A.: Tax evasion, tax rates and reference dependence. FinanzArchiv 60(3), 422–445 (2004)
Bagozzi, R., Baumgartner, H., Youjae, Y.: State versus action orientation and the theory of reasoned action; an application to coupon usage. J. Consum. Res. 18(3), 505–518 (1992)
Hashimzade, N., Myles, G.D., Tran-Nam, B.: Applications of behavioural economics to tax evasion. J. Econ. Surv. 27(5), 941–977 (2013)
Piolatto, A., Rablen, M.D.: Prospect theory and tax evasion: a reconsideration of the Yitzhaki puzzle. Theor. Decis. 82(4), 543–565 (2016). https://doi.org/10.1007/s11238-016-9581-9
Yonazi, J.: Adoption of transaction level E-government: initiatives in Tanzania. Dar es Salaam Tanzania: CLKNET The Institute of Finance Management (2013)
Sefue, O.: Electronic government. Ministry of Communication, Dar es Salaam (2014)
Rumanyika, J.D., Mashenene, R.G.: Impediments of e-commerce adoption among small and medium enterprises in Tanzania. Int. J. Inf. Technol. 32(1), 45–55 (2014)
Lediga, C.: The impact of internet penetration on corporate income tax filing in South Africa. Ruhr Economic Papers, No. 861. RWI-Leibniz-Institut für Wirtschaftsforschung, Essen (2020). ISBN 978-3-86788-998-8. https://doi.org/10.4419/8678899
Kimea, A., Chimilila, C., Sichone, J.: Analysis of Taxpayers’ intention to use tax e-filing system in Tanzania: controlling for self-selection based endogeneity. Afr. J. Econ. Rev. VII(2), 193–212 (2019)
World Bank: Paying taxes 2019. fourteen years of data and analysis of tax systems in 190 economies: how is technology affecting tax administration and policy? World Bank (2018)
Eichfelder, S., Hechtner, F.: Tax compliance costs: cost burden and cost reliability. Arbeitskreis Quantitative Steuerlehre (arqus), Discussion Paper, No. 212 (2016)
Mukuwa, V., Phiri, J.: The effects of e-services on revenue collection and tax compliance among SMEs in developing countries: a case study of Zambia. Open J. Soc. Sci. 8, 98–108 (2020). https://doi.org/10.4236/jss.2020.81008
Lee, H.C.: Can electronic tax invoicing improve tax compliance? A case study of the Republic of korea’s electronic tax invoicing for value-added tax. World Bank Policy Research Working Paper 7592 (2016)
Soneka, P., Phiri, J.: A model for improving e-tax systems adoption in rural Zambia based on the TAM model. Open J. Bus. Manag. 7, 908–918 (2019). https://doi.org/10.4236/ojbm.2019.72062
Efobi, U., Beecroft, I., Belmondo, T., Katan, A.: Small businesses and the adoption of the integrated tax administration system in Nigeria. In: ICTD Research in Brief 40. IDS, Brighton (2019)
Matimbwa, H., Masue, O.S., Shillingi, V.: Technological features and effectiveness of human resources information system in Tanzania local government authorities. Am. J. Oper. Manag. Inf. Syst. 5(3), 29–40 (2020)
Matimbwa, H., Masue, O.S.: The Influence of organizational factors on human resources information system effectiveness in Tanzanian local government authorities. ICTACT J. Manag. Stud. 6(3), 1263–1272 (2020)
Akkaya, C., Wolf, P., Krcmar, H.: A comprehensive analysis of e-government adoption in the German household. In: 11th International Conference on Wirtschaftsinformatik, pp. 1525–1539. Technische Universität München, Leipzig, Germany (2013)
Bhuasiri, W., Zo, H., Lee, H., Ciganek, A.: User acceptance of e-government services: examining an e-tax filing and payment system in Thailand. Inf. Technol. Dev. 22(4), 672–695 (2016)
Blume, J., Bott, M.: Information Technology in Tax Administration in Developing Countries. KfW Development Bank, Palmengartenstr, Frankfurt am Main (2015)
Chiu, C., Wang, E.: Understanding web-based learning continuance intention: the role of subjective task value. Inf. Manag. 45(3), 194–201 (2008)
Venkatesh, V., Thong, J., Xu, X.: Consumer acceptance and use of information technology: extending the unified theory of acceptance and use of technology. MIS Q. 36(1), 157–178 (2012)
Daka, G.C., Phiri, J.: Factors driving the adoption of e-banking services based on the UTAUT model. Int. J. Bus. Manag. 14, 43–52 (2019). https://doi.org/10.5539/ijbm.v14n6p43
Venkatesh, V.M.: User acceptance of information technology: toward a unified view. MIS Q. 27, 425–478 (2003). https://doi.org/10.2307/30036540
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Switzerland AG
About this paper
Cite this paper
Jumanne, M., Mrindoko, A. (2023). Effectiveness of E-Filing System on Improving Tax Collection in Tanzania: A Case of Ilala Tax Region. In: Aigbavboa, C., et al. Sustainable Education and Development – Sustainable Industrialization and Innovation. ARCA 2022. Springer, Cham. https://doi.org/10.1007/978-3-031-25998-2_60
Download citation
DOI: https://doi.org/10.1007/978-3-031-25998-2_60
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-25997-5
Online ISBN: 978-3-031-25998-2
eBook Packages: Business and ManagementBusiness and Management (R0)