The effectiveness of electronic fiscal devices in ensuring tax compliance among small business owners of Arusha-Tanzania.
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Date
2020
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Abstract
This study assessed the contribution of Electronic Fiscal Devices (EFDs) in tax compliance
among small business owners of Arusha, Tanzania. The government of Tanzania invests
effort to ensure that revenue adequately supports development projects; however, there is
continued reliance on external sources of funds to support development projects. This
poses a question on how the introduction of EFDs would increase tax compliance for
sustainable government income generation.
The first objective of the study determined whether the fear of whistle-blowers impacts the
rate of using Electronic Fiscal Devices. Secondly, the study determined whether the
perceived level of punishment due to non-compliance impacts the rate of EFD use.
Furthermore, the study determined the impact of EFD use on audit effectiveness, the level
of transparency and fairness in tax procedures. Lastly, the study determined the impact of
EFD use, the level of transparency, fairness in tax procedures, and the audit effectiveness
on tax compliance.
Overall the study used mixed methods. In addition, the study used a quantitative sample of
279 respondents obtained through systematic sampling. Also, it used a qualitative sample
of 10 respondents obtained conveniently. Additionally, face and content verification were
used for validity confirmation, and the Cronbach Alpha tested the reliability of the data.
All quantitative questions used a 5-level Likert scale. Data was analysed using descriptive
procedures, One Way ANOVA, Chi-Square, and ordinal regression. The following were
the findings of the study: First, the fear of whistle-blowers determined the rate of using
EFDs. On the other hand, audit effectiveness impacted tax compliance. Lastly, the use of
EFDs in tax audits impacted tax compliance.
Description
Doctoral Degree. University of KwaZulu-Natal, Durban.
Keywords
Tax procedures--Impartiality.