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An Evaluation of Governments’ Initiatives in Enhancing Small Taxpayers’ Voluntary Tax Compliance in Developing Countries

Alex Reuben Kira ()

International Journal of Academic Research in Accounting, Finance and Management Sciences, 2017, vol. 7, issue 1, 253-267

Abstract: Tax compliance has been a problem in many developing countries. Even though various mechanisms have been adopted to enhance compliance among tax payers, the success has not yet been achieved. The focus of this study is to access approaches on how to promote voluntary compliance among taxpayers in developing countries specific case of Tanzania. The study adopted cross sectional research design whereby a cross-sectional survey and descriptive analytical methods were adopted. Both primary and secondary data were collected and analysed. The study found that in order for the small tax payers to comply voluntary with tax laws and regulations; the government should focus on the use of information technology communicating i.e. mobile phones; reduction in tax rate to minimize tax burden; increase accountability and transparency among tax authority officials. The study recommendation include: Improvement of tax-education to improve understanding between government and taxpayers in all tax matters, preparation of motivating mechanisms to influence the small tax payers to participate fully in paying tax voluntarily, adoption effective tax collection methods and proper utilization of collected revenues, improvement of social services, increase in tax knowledge to both small taxpayers and tax officials, frequently training of tax officials and tax payers education to increase transparency and accountability. Through the study recommendations will improve the Tanzania’s government strategies in enhancing small tax payers’ voluntary tax compliance.

Keywords: Tax compliance; developing countries; Tanzania; small taxpayers (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:hur:ijaraf:v:7:y:2017:i:1:p:253-267