Assessment of effect of computerized information systems in enhancing tax audit effectiveness: a case of Tanzania revenue authority

This study aimed at assessing effect of computerized information systems in enhancing tax audit effectiveness, A case of Tanzania Revenue Authority (TRA). The study employed qualitative research approach, which involved collection of primary data through administering questionnaires, interviews with selected TRA staff and secondary information from various sources. Data collected were processed and analysed using thematic content analysis with the assistance of Statistical Package for Social Sciences (SPSS). The study was guided by Resource Based view Theory. The study found out that computerized information systems, to a certain extent, have facilitated effectiveness of tax audit but there are some impeding factors, which limit enhancement of tax audit effectiveness to a higher potential. It was revealed that levels of information systems customization, reliability of information contained in the TRA information systems, competence among tax auditors in using information systems to the full potential and integration of TRA information systems are still low. In due regard, the study recommends TRA to assess and improve the level of customization of its information systems as well as assess and improve the function of data management to ensure accurate capturing and periodic updating of taxpayers’ information. It is further recommended that TRA should establish and implement a good training plan to enhance competence of tax auditors, the level of information systems integration and conduct regular cost benefit analysis in relation to information systems so as to identify challenges and take corrective actions timely. All these measures will help TRA utilize its computerized information systems in a better way and realize more benefits through enhanced effectiveness in tax audit including other TRA functions.