Income tax law simplification and tax compliance: a case of medium taxpayers in Zanzibar

Authors

  • Shuweikha S Khalfan University of Dar es Salaam
  • Ernest Kitindi University of Dar es salaam
  • Henry Chalu University of Dar es salaam

Abstract

Tax law simplification was among tax reform strategies formulated to address tax law complexity and improve tax compliance. Although it is about two decades of implementation of the new tax laws, little is known on the effect of such simplification on tax compliance. This paper examined the influence of the Income Tax Law (ITL) simplification on tax compliance in Zanzibar. A survey was conducted among 367 medium taxpayers registered with TRA €“ Zanzibar. Descriptive and Structural Equation Model were used for data analysis. The findings reveal that tax compliance level of medium taxpayers is high and the ITL simplification positively and significantly influenced tax compliance among medium taxpayers in Zanzibar. The study found medium taxpayers considered the ITL as readable, though the challenge was on its understandability and applicability. This study urges tax authorities to improve the ITL education and establish a special unit to deal with medium taxpayers only.

Author Biographies

Shuweikha S Khalfan, University of Dar es Salaam

PhD student

Ernest Kitindi, University of Dar es salaam

Associate Professor

Henry Chalu, University of Dar es salaam

Senior lecturer

Downloads

Published

2020-07-21

Issue

Vol. 23 No. 1 (2020): Business Management Review

Section

Articles

License

Copyright

Copyright © by University Of Dar-es-Salaam Business School, University of Dar es Salaam

All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage or retrieval system, without permission in writing from the publisher, except for short extracts in fair dealing, for research or private study, critical scholarly review or discourse with an acknowledgement.

 Business Management Review [ISSN 0856 2253 (Print) & ISSN   (Online)] is published bi-annually, June and December by University Of Dar-Es-Salaam Business School, University of Dar es Salaam, and P.O. Box 35046 €“ Dar es Salaam €“ Tanzania.