The influence of tax compliance methods on tax compliance among medium taxpayers in Zanzibar

This study assessed the influence of tax compliance methods on the compliance of medium taxpayers and the mediating effect of trust in government on the relationship between the mixed method and tax compliance of medium taxpayers in Zanzibar. Persuasion method was assessed through the influence of taxpayers services and tax laws simplification on tax compliance. The coercion method was measured from the influence of tax audit and tax penalty on tax compliance. The mixed method was measured through the combining effect of taxpayers services, tax laws simplification, tax audit and tax penalty on tax compliance. The study used Slippery Slope Framework, the Economic Deterrence Theory, the Theory of Planned behavior and Fiscal Psychology Theory. A survey was conducted among 372 medium taxpayers registered by Tanzania Revenue Authority in Zanzibar. Data were analysed using descriptive analysis and the Structural Equation Model analysis. The findings revealed that mixed method is the most effective method for promoting tax compliance among medium taxpayers in Zanzibar, compared to the effect of the persuasion or coercion method when used separately. This supports the novelty of the Slippery Slope Framework. The findings that, trust in government partially mediates the relationship between the mixed method and tax compliance confirmed the Fiscal Psychology Theory. This study also asserts the Theory of Planned Behaviour by found that, medium taxpayers are compliant and the persuasion measures have positive influence on tax compliance. Therefore, it is recommended that the tax authority should increase the taxpayers' services coverage, improve the tax audits operations and the government should honour its trust in the public to ensure high tax compliance.