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Income tax law simplification and tax compliance: a case of medium taxpayers in Zanzibar
Shuweikha S Khalfan1, Ernest G. Kitindi2 and Henry Chalu3
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.
Key words: Income tax law simplification,
Tax
compliance, Medium taxpayers.
INTRODUCTION
In
the current global economic
environment, the contribution of income tax compliance
to
economic development cannot be undervalued. Income tax contributes a large part of domestic
revenue collections (IMF, 2014;
OECD, 2008). It guarantees governments with
reliable internal sources of fund for public expenditure [like security, road construction, education, poverty reduction and create framework for economic growth] (IMF, 2014; IMF, OECD, UN, & World Bank, 2011; OECD, 2008). Tax compliance means the willingness of taxpayers to follow the
requirements of tax laws (James & Alley, 2002; Kirchler, 2007).
Although, high tax compliance becomes the desire of all governments, spurring tax compliance is a challenging and complex task of all tax administrations (Brondolo,
2009; Alm
& Martinez- Vazquez, 2006). The challenges arise from the fact that, most tax administrations have scarce resources with
a high demand for revenue collections (IMF, 2013; Ongwamuhana,
2011). Yet, many people do not like to pay tax (Hofmann, Hoelzl & Kirchler, 2008). The critical question raised here is, why dont many people like to pay taxes? Literature shows that tax compliance is a complex interdisciplinary phenomenon, which is determined by various factors (Kirchler, 2007;
Nichita,
2012). The complexity nature of tax compliance leads to a lack of agreed definitions, measurement
and consensus as to why people do or do not pay their taxes (Kirchler,
2007). Hence,
the literature recommends that tax authorities should understand factors which are highly influencing taxpayers decisions to comply
with the tax laws and employ effective tax compliance strategies to ensure
high tax compliance (Ayres &
Braithwaite, 1992;
Devos, 2014; Morris
& Lonsdale,
2004; Nichita,
2012).
Tax law complexity has been mentioned as
an important determinant of tax compliance (Kirchler,
2007; Fjeldstad
& Moore, 2008; Loo, McKerchar & Hansford, 2010). This is because the t ax law provides a tax base,
responsibilities of taxpayers, procedures as well as tax rate (Forest & Sheffrin,
1PhD student, University of Dar es Salaam, Business School, Tanzania (email: shweikha@yahoo.com)
2Associate Professor - University of Dar es Salaam Business School
3Senior Lecturer - University of Dar es Salaam Business School.
Business Management Review: Volume 23,
Number 1, pages 1 -18, ISSN 0856-2253 (eISSN 2546-213X)
©January-June, 2020 UDBS. All rights
of reproduction in any form are reserved.
2002). For taxpayers to be compliant, they are supposed to have a clear knowledge of the tax law.
That is, they must be able to read, understand and apply
the tax law effectively (Kasipillai, 2000; Palil,
2005; Saad,
2010). However, many tax laws are considered to be complex (Carnes & Cuccia,
1996; Kirchler,
2007; Looet al., 2010). The complexity nature of tax laws comes from the users
difficulty in reading, understanding and applying tax laws (Mulder, Verboon
& De Cremer, 2009; Saad, 2010). The complex tax law affects tax compliance (Fjeldstad
& Moore, 2008; Richardson,
2006). Saad (2010) noted that high level of complexity in tax law leads to reduction o f technical
accuracy to both tax administrators and taxpayers. Fjeldstad & Moore (2008) noted that many large
corporations in Tanzania litigate against the tax system for lack of simplicity and constructive
dialogue with the tax administration. The tax law complexities cause taxpayers to deploy services of
tax professionals, which increase the cost of compliance. The increased compliance cost may cause some taxpayers, especially small and medium taxpayers, to opt not to comply (Loo et al.,
2010; Mckerchar, 2003; Mahangila,
2017). This assertion speaks to the Theory of Planned
Behaviour that argues that an individuals decision to conduct a particular behaviour is determined
by his/her perception of the ease or difficulty of performing such behaviour
(Ajzen, 1991).
Tax law simplification was among tax reform strategies undertaken in many countries (including
Tanzania) to promote tax compliance (Gill, 2003; IMF, 2013; Kitillya,
2011; Ongwamuhana,
2011). This
process
was
intended to place simple tax law from users
perspectives; to enable users
to be able to read, understand, and correctly apply them (Saad, 2014). The simple tax law was expected to reduce
the need for hiring tax experts. It was also aimed at reducing the compliance
cost to improve tax compliance and revenue collections
(Loo et al., 2010; Palil,
2005; Richardson,
2006). In Zanzibar, tax laws simplification has led to the improvement of existing tax laws
and the
introduction of new tax laws. The new tax laws include the Income Tax Act No 11 of 2004, The
Value Added Tax, 1997 as well as the East African Community Customs Management Act, 2004.
Despite decades of implementations of simplified tax laws in many countries, still the question of
how it influences
tax compliance is
not full addressed in academic circles. The empirical literature proffers few studies that have examined the effect of tax law simplification on compliance (Akhand,
2012; Ongwamuhana,
2011). However, the findings of these studies are not consistent and have
some limitations which encourage further investigation. For example, Akhand
(2012) found out
that simplified tax laws have a significant positive influence on
overall compliance among large taxpayers in Bangladesh. Ongwamuhana
(2011) opined that, despite the reforms undertaken in
Tanzania, tax laws do not encourage taxpayers to comply. However, this study did not assess the
impact of ITL simplification on tax compliance in Tanzania.
Literature also shows few studies that examined the impact of tax laws simplification on simplicity
of
tax laws (Forest & Sheffrin, 2000; Kirchler, Niemirowski,
& Wearing; 2006; Tan &Tower, 1992;
Pau,
Sawyer& Maples, 2007; Saw & Sawyer, 2010).
These studies assess the simplicity of tax law in terms of the readability factor only and ignore the understandability and applicability of the tax
laws, which are also important variables in assessing the simplicity of
tax law. However, these
studies portray conflicting results some studies found tax law simplification improved the
readability of tax law (Kirchler et al.,2006; Pau et al., 2007), while other studies found that tax laws
simplification failed to improve the readability of tax laws (Tan &Tower, 1992). Moreover, many studies have been conducted in developed countries and ignore many developing countries that also simplified their tax laws. The findings of existing studies cannot be
applied effectively by
developing countries, because of
cultural, socio-economic as well as tax systems differences. To the best of this
researchers
knowledge, no study has examined the influence of ITL simplification
on
tax compliance of medium taxpayers in Zanzibar.
The medium taxpayers compliance is very crucial,
because of their potential revenue contributions
(Arachi & Santoro, 2007; Bennett, 2008). However, the
accessed literature shows no
study
investigated this phenomenon. Many studies group medium together wit h small taxpayers and report them as small and medium taxpayers (Arachi & Santoro, 2007, Mahangila,
2014; Ondimu,
2015; OECD, 2012).
These studies claim
that,
small and medium
taxpayers made
huge
contributions to the economy, but they
are associated with tax non-compliance (Akhand, 2012; Arachi & Santoro, 2007;
Bennett, 2008;
Cynthia, 2009). For example, Kimungu & Kileva
(2007) noted that, the Small and Medium
Enterprises (SMEs) contribute between35 and 50 per cent of Gross Domestic Product in Tanzania. But the Tanzania Revenue Authority (TRA) collects below
30%
of tax revenue from SMEs who form 90% of all taxpayers in the country. However, t he findings from
SMEs taxpayers studies cannot be effectively used for promotion of medium
taxpayers compliance. This is due to the fact that medium
taxpayers are different from
small
taxpayers in many
respects like business size, type of business, profit margin, and most likely in their level of tax compliance (Akhand, 2012; Kirchler,
2007; Morris & Lonsdale, 2004). Therefore,
separate medium taxpayers studies are needed to develop effective strategy that ensures
long-term
compliance of this prospective group of taxpayers.
Zanzibar is a part of the United Republic of Tanzania commonly known as Tanzania (TRA,
2004). The researcher was interested on Zanzibar because of
business densities and nature of
economic activities. For a long time,
Zanzibar has
been considered as a centre
for business across eastern and
central Africa (ZNCCIA, 2013). The Zanzibar Small and Medium Enterprises (SME) Policy
consider medium
taxpayers as an engine for economic development (MTI, 2006). Zanzibar also
employs simplified ITL to promote tax compliance, but the speculation in tax revenue collection
performance necessitated investigation in this area (TRA, 2018). Therefore, the current study examined the influence of ITL simplification of tax compliance among medium taxpayers in
Zanzibar.
LITERATURE
REVIEW Theoretical Literature Review Theory of Planned
Behaviour
The current study based on the Theory of Planned Behaviour (Ajzen,
1991). This theory is the most
widely used model to explain and predict behaviour
(Armitage & Conner, 2001). The application
of the Theory of Planned Behaviour (TPB) in taxation is still growing. Literature shows very few
studies
that employed this theory to predict tax compliance behaviour. Scholars who have applied
this
theory in their studies include, but not limited to, Achmat (2013); Bobek, Richard, & Hatfield (2003); Godin & Kok
(1996); MirzaBin (2016); Trivedi, Shehata
& Mestelman
(2005); Saad (2014)
and Smart (2012). According to TPB a persons behaviour
is determined by the intention to perform the behaviour and perceived behavioural
control
that refers to the perceived ease or difficulty
involved
in
performing the behaviour
of interest (Ajzen, 1991; Ajzen,
2010). The intention indicates the individuals readiness to perform certain behaviour.
The behavioural intention is a
function of an individual attitude towards the behaviour, which is the evaluatio n of performing the behaviour as favourable
or not.
The current study
employed TPB to determine the tax compliance among medium taxpayers in
Zanzibar. The income taxation in
Zanzibar is based on a self-assessment system, where taxpayers are supposed to assess
tax, file returns and
pay their income tax due without tax officials
intervention. In
this situation, the income tax
compliance behaviour
is highly determined by taxpayers intention
to comply. The taxpayers intention
to comply is also determined by both taxpayers attitudes on tax compliance and the perceptions of his/her important people on tax
compliance. Therefore, TPB was found to be appropriate in predicting the income tax compliance
behaviour
of medium taxpayers in Zanzibar. TPB was also used to determine the influence of the
ITL simplification of
tax compliance. This theory contends that behaviour is determined by the individual perceptions of simplicity or difficulty in performance of such behaviour
(Ajzen, 1991).
This study argues that, high tax compliance can be achieved when taxpayers perceive tax law as
simple, reduces compliance cost and improves tax compliance. Therefore, it was
expected that the
ITL simplification would promote medium taxpayers
compliance.
Empirical Literature Review
Tax Compliance
and Non-Compliance
Literature shows that tax compliance is a complex phenomenon which is determined by many
factors (Kirchler, 2007). The complex nature of tax compliance leads to no standard agreed definition of tax compliance. Various tax compliance definitions have been developed. Andreoni, Erard
& Feinstein. (1998) point out that tax compliance is a fluid concept that has different meanings from
different perspectives. For example, in public finance theories, tax compliance relates to equity
and efficiency issues. In organizational theories, it relates to the principal-agent
problem, where corporations and their advisors continually
provide asymmetrical information
about their income and tax liabilities.
The current study
adopted James & Alleys (2002) definition that tax compliance means the
willingness of individuals and other entities to act within the spirit as well as the letter of tax law
and administration without application of enforcement activity. Tax non-compliance means failure to follow the requirements of tax law that results in the delays or failure to pay tax. There are two kinds of tax non-compliance known as tax evasion and tax avoidance. Tax evasion is a deliberate
illegal intention to reduce tax liabilities and tax avoidance is the action taken to achieve the legal reductions
of
tax liabilities (Alm, 1999; Kirchler,
2007; Slemrod,
2007).
The Income Tax Law (ITL) Simplification
in Tanzania
In Tanzania, income taxation is governed by the Income Tax Act, 2004. The ITL is the regulatory
instrument that governs the income taxation (Forest & Sheffrin, 2002). Income tax is levied on income from employment, income from business and income from investment (URT, 2004). The
Income Tax Act, 2004
is
a new ITL that came into effect in
July
2004
and repealed the previous Income Tax Act, 1973.The Income Tax
Act, 1973 was considered to be complex, with many
loopholes for tax avoidance. It also failed to cope
with modern business practices (Luoga, 2003; Kitillya,
2011; Ongwamuhana, 2011; Osoro, 1995). The complex nature of the Income Tax Act,
1973 has been also associated with the widespread tax non-compliance, corruption and low revenue
collections that caused the fiscal crisis in the 1990s (Fjeldstad, 2003; Osoro,1995).
The ITL simplification was among tax reform strategies undertaken to improve tax compliance and revenue collection so as to restore economic crisis (Hasseldine & Bebbington, 1991; IMF, 2014; Kitillya,
2011; Ongwamuhana,
2011). This process led to the introduction of the new Income Tax
Act, 2004. The simplified ITL restructured the income tax system in line with modern requirements (Luoga, 2003; Kitillya, 2011; Ongwamuhana,
2011). The Income Tax Act, 2004 was expected
to be simple where users can read, understand and apply properly so as to minimize compliance cost, promote tax compliance and revenue collections (IMF, 2014;
Kitillya, 2011; Ongwamuhana,
2011; Palil,
2005; Saad, 2010).
Tax Law Simplification and Tax Compliance
Tax laws are the legal rules and procedures governing how federal, state, and local governments
calculate the tax you owe (Forest & Sheffrin,
2002). Tax law is a base for tax compliance. Tax laws
provide the tax base, responsibilities of
taxpayers, procedures as well as tax rates (Forest &
Sheffrin, 2002). Taxpayers become compliant when they follow the requirements of tax laws
(Kirchler, 2007). Franzoni (2000) noted that, for a taxpayer to be considered as
entirely compliant he/she must fulfil four conditions of tax laws which are: (1) true reporting of the tax base, (2) correct
computation of the liability, (3) timely filing of the return, and (4) timely payment of the amounts
due. Any deviation from
these conditions leads to tax non-compliance. Thus, for taxpayers to be
compliant they need not only have the willingness to comply but also have a clear knowledge of
all tax laws, that is, he/she must be able to read, understand, and apply tax laws effectively (Kasipillai, 2000;
Palil,
2005; Saad, 2010). Knowledge on tax laws is much needed in self-
assessment system
where taxpayers are supposed to correctly
calculate their own tax dues. The
knowledge on tax laws
becomes very important in determining tax compliance (Loo, 2006).
The government enacts tax laws with the assumption that all taxpayers have clear knowledge of tax laws and they can comply. However, many people complain on the complexity in tax laws (Carnes
& Cuccia, 1996; Loo et al.,
2010). The complex nature of tax laws comes from the users difficulty
in reading, understanding, and applying tax
laws (Binh, 2000; Mulder et al., 2009; Saad, 2010).
Complex tax laws also affect tax compliance (Richardson, 2006). However, there is a contradiction
in
terms of preference on tax law complexity between users who prefer simple tax laws [many of
them being taxpayers]
and those who prefer ambiguous tax laws [many of them being tax authorities, lawyers and accountants] (Forest & Sheffrin, 2002). More complex tax laws impede the fairness of the tax system because not all taxpayers are able to take advantage of complex tax laws (Fjeldstad, & Moore, 2008). Moreover, Saad (2010) noted that, high level of complexity in
tax law leads to reduction of technical accuracy to both
tax administrators and taxpayers. This
causes some taxpayers to deploy services of tax professional which increase the cost of compliance.
The increased cost of compliance may cause some taxpayers to opt not to comply (Loo et al., 2010;
McKerchar, 2003; Mahangila,
2017). Tax non-compliance adversely
affects tax administration
efficiency and economic development (Brand, 1996; Tanzi, 2000; OECD, 2008).
In addressing the adverse effect of tax laws complexity on economic development, many countries have simplified their tax laws (IMF, 2013). More often simplicity has more considerable advantage over complexity (Hasseldine & Bebbington,
1991). Tax laws simplification was among tax reform
strategies
undertaken to improve tax compliance and revenue collection to restore economic crisis
(Hasseldine & Bebbington, 1991; IMF, 2014; Kitillya,
2011; Ongwamuhana, 2011). Binh (2000) argues that simplification of tax laws
is the greatest and critical role of tax administration. Simplicity is a complex, multi-facetted concept
that needs a clear definition on its
specific applications. Otherwise,
one
might intend
to
simplify but
result into
more co mplexities. A commonly accepted definition of legal simplicity of taxation is the ease by which a body of tax law can be read, correctly
understood and applied to practical situations (Binh,
2000). Therefore, a simple tax law is one that users can read, understand, and apply (Binh, 2000; Mulder et al., 2009; Richardson, 2006; Saad, 2014). Literature shows
various forms of tax law simplification like the
reduction of number of
tax rates, harmonization of definitions, compliance procedure and the introduction of
new tax laws (Cox & Eger, 2006). Tax law simplification intends to place simple
tax laws that users can read, understand, and correctly
apply, particularly in determining accurate tax liabilities. It also aims at minimizing compliance cost by reducing the need for employing tax
expert and eventually improving the level of tax compliance and revenue collections (Cox & Eger,
2006; Loo et al., 2010; Palil, 2005; Richardson, 2006; Saad, 2010).
In spite of
the various tax laws simplification undertaken around the world little is known on the
impact of such simplification on
tax compliance. Literature shows a few studies examined the
impact of tax law simplification on simplicity of tax laws (Forest & Sheffrin,
2000; Kirchler et al.,
2006; Tan & Tower, 1992;
Pau et al., 2007; Saw
& Sawyer, 2010). These studies assessed the simplicity of
tax law in terms of the readability factor only and ignore the understandability and
applicability
of the tax laws, which are also important variables in assessing the simplicity of tax
law. However, these studies showed mixed and contradicting results that calls
further investigation
in this area. For example, Tan &
Tower (1992) employed Flesch Reading Ease Index to measure
the readability level of New Zealand tax legislation. The Flesch Reading Ease Index measures the
difficulty ranging from zero (most difficult) to 100 (least difficult). They found that the efforts made by the tax authority at that time to simplify the tax law failed. However, Pau et al. (2007)
showed conflicting results on
the readability of the newly written Income Tax Act of 2004. They used Flesch Reading Ease Index and found a significant improvement in respect of tax simplicity
through
readability measure. This finding related to the results of Sawyer (2007) who agreed that
there have been
some improvements in tax simplification. Saw & Sawyer (2010) examined the readability of a sample of the selected sections
of
the Income Tax Act 2007 in New Zealand using
similar measures as in Pau et al. (2007) and found significant success in improving readability of
such tax law. Laffer, Winegarden
& Childs. (2011) also assessed the effect of the simplification of
the
tax laws on compliance costs in the USA. The study used the annual federal funds rate on 10 years
Treasury bond and found that, when taxpayers
comprehend the tax laws, the tax compliance cost is greatly reduced. However, these studies did not assess the influence of tax law simplification on tax compliance.
The accessed literature shows very few studies assessed the influence of tax law simplification on
tax compliance (Akhand, 2012; Ongwamuhana, 2011). However, the findings of these studies are not consistent and have some limitations which
encourage further investigation. For example,
Akhand (2012) assessed the contribution of simplified tax laws on
tax compliance among large
corporate taxpayers registered with the Large Taxpayers Unit (LTU) of Bangladesh. Following an analysis of elite interviews and survey data using
logistic regression,
Chi-square
automatic interaction detector and multilevel logistic regression, the findings suggest that, simplified tax laws do not affect neither, filing compliance, reporting compliance nor payment compliance of
large corporate
taxpayers. However, simplified tax law was found to play a significant positive role in
improving overall tax compliance of large corporate taxpayers in Bangladesh.
Most of these studies have been conducted in developed countries and ignored many developing countries
which also simplify their tax laws. So far, it is
only
Ongwamuhana
(2011) who assessed the tax compliance in Tanzania by
analysing
the law and policy affecting voluntary taxpayer compliance. He employed documentary
review and gives a one-person opinion that, despite the reforms undertaken in
Tanzania, tax laws do not encourage taxpayers to comply. However, this
study did not assess the impact of ITL simplification on tax compliance in Tanzania. In this regard, this paper examines
the
influence of ITL simplification on tax compliance among
medium taxpayers in Zanzibar. It is
therefore expected that the ITL simplification introduced the new Income Tax Act, 2004 which is simple, can easily be read, understood and applied effectively and that improves tax compliance. This expectation is reflected in the following hypothesis, which
proposes to test the relationship between the ITL
simplification and tax compliance.
H1: The ITL simplification positively influences tax compliance among medium taxpayers in
Zanzibar.
METHODOLOGY
This study employed Post- positivism deductive approach to understand the influence of ITL
simplification on tax compliance among medium taxpayers in Zanzibar. A survey was conducted
on 367 medium
taxpayers who are registered for Income tax purposes with
TRA-Zanzibar. Data
were collected using structured questionnaires. The study involved two main variables which
are
the ITL simplification as
an
independent variable and tax compliance as a dependent variable. The
ITL simplification was measured from
the taxpayers perception of the simplicity in the Income Tax Act, 2004. This variable was measured through the readability, understandability
and
applicability of the Income Tax Act, 2004. These measures were also used by Laffer et al. (2011);
Binh
(2000); Lawless (2009); Long & Swingen (1987) as well as Saad (2010). Based on
the
definition
of tax compliance by
James & Alley (2002), tax
compliance is the willingness of taxpayers to follow the requirements of tax laws. Tax compliance in this study
was
measured as
voluntary
tax compliance by using voluntary
tax compliance indicators developed by
Kirchler & Wahl (2010) and Braithwaite, Murphy & Reinhart (2007). These measures were also used by
Alabede,
Ariffin & Idris (2011); Kirchler, Hofmann & Gangl
(2012) as well
as Siahaan (2012). Descriptive analysis and Structural Equation Modelling (SEM) were used to analyse data and test
the hypothesis of this study.
Out of 367 questionnaires distributed, 308 questionnaires were
successfully completed and returned. This forms an83.9% response rate, which is enough
to continue with the study
(Finchman, 2008; Hair, Black, Babin & Anderson, 2014; Sekaran
& Bougie,
2010). These findings also support the idea of Sapiei, Kassipillai, & Uchenna
(2014) that
research in the area of taxation is a sensitive issue that makes
taxpayers reluctant to respond to the questionnaires.
DATA ANALYSIS AND INTERPRETATION OF
FINDINGS
Descriptive Analysis
Descriptive results coveringrespondents
profiles, respondents perception on tax compliance,
Income tax law simplification and the opinions and perceptions of the Income Tax Act, 2004 simplicity. Table1 presents the respondents profile. The results show that 260 (84%)
of the respondents were male and 48 (16%) were female. The findings correspond to the actual cultural environment in Zanzibar where females are supposed to stay home to look after children and other
family matters. However, the 48 (16 %) females in the medium businesses indicate the growth
of female businesses in Zanzibar. In
the past it was difficult for women in Zanzibar to participate in
business activities. The study
also found that many of the respondents 126 (40.9%) were aged
between 20 -35 years. This indicates that more young people are entering into business. These findings are consistent with the idea that the SME sector is labour intensive and becomes the resort
for many school
leavers who are not employed by the government (URT, 2003). The findings of this study show that a majority of the medium taxpayers
in
Zanzibar,
i.e. 100
(32.5%) hold a higher degree. There were 68 (22%) diploma holders, 84 (27.3%) had a bachelors
degree, 26 (8.4%) had
an
advanced level or similar qualification. Regarding the source of tax knowledge, only 91(29.5%) of participants admitted to getting their tax knowledge from formal tax education. This indicates
the capacity
of medium taxpayers to read, understand and implement tax laws and requirements. Likewise, this study found that many medium
taxpayers (150, 48.7%) are traders. This confirms the history of Zanzibar as the centre
for business across eastern and central Africa (ZNCCIA, 2013). This study found that many [132 (42.9%)] of the medium taxpayers businesses were in existence
for between 1 to 10 years. The results conform to the findings of many other studies that majority
of
SMEs fall between 1 to 10 years (Abaho,
Begumis,
Aikiriza
& Turyasingura, 2017).
|
|
Table
1: Respondents Profile |
|
|
|
Variable |
Profile Frequency |
Percentage |
|
|
(n=308) (%) |
|||
|
Gender |
Male |
260 |
84.4 |
|
|
Female |
48 |
15.6 |
|
Age of respondents |
Under 20 |
13 |
4.2 |
|
|
20 35 |
126 |
40.9 |
|
|
36 45 |
110 |
35.7 |
|
|
46 55 |
52 |
16.9 |
|
|
Above 55 |
7 |
2.3 |
|
Level of education |
Secondary (Form 1-4) |
30 |
9.7 |
|
|
Advance/VETA/Certificate |
26 |
8.4 |
|
|
Diploma |
68 |
22.1 |
|
|
Bachelors degree |
84 |
27.3 |
|
|
Higher degree |
100 |
32.5 |
|
Source of Tax Knowledge Instructions in tax forms 93 30.2 |
|||
|
|
|
|
|
|
|
Friends |
28 |
9.1 |
|
|
TRA Officers |
67 |
21.8 |
|
|
Formal education |
91 |
29.5 |
|
|
Other, e.g. Radio, TV, internet |
29 |
9.4 |
|
Type of business |
Trade |
150 |
48.7 |
|
|
Hotel and Restaurants |
52 |
16.9 |
|
|
Manufacturing |
20 |
6.5 |
|
|
Other service |
76 |
24.7 |
|
|
Tax consultant |
10 |
3.2 |
|
Age of business |
01 10 |
132 |
42.9 |
|
(Years) |
11 25 |
91 |
29.5 |
|
|
26 35 |
65 |
21.1 |
|
|
Above 35 |
20 |