The role of tax audit in self-compliance in Tanzania: a case of Bala Tax Region

Abstract

This study assessed the role of tax audit in self-compliance operating within Ilala Tax Region in Dar es Salaam, Tanzania. It employed the quantitative theory of research were by, data were collected using Self-administered questionnaires from 80 respondents, who yielded a 100% percent return rate, analyzed using Statistical Package for Social Sciences (SPSS) version 20.0; particularly in cross tabulation and findings tabulated and summarized, with frequencies, percentages, tables and figures obtained. In addition, multiple regression analysis was also tested for the dependent variable regressed on all independent variables. The study findings found that the roles of tax audit unit at TRA have a significant degree of influence on the taxpayer’s self-tax compliance. The study results of the multiple regression analysis signals showed that there is variation in the effect of the selected. Roles of the tax audit unit on the taxpayers’ self-tax compliance and therefore, the function proposed were good predictors of the taxpayers’ self-tax compliance at TRA. Other variables varied according to personal characteristics since the respondents had different opinions towards self-tax compliance. Also, the study found that majority of the respondents was not satisfied with the roles performed by the tax audit unit to influence taxpayers’ self-compliance. Of these significant variables, Performance of tax audit (assessment of business), Interprets taxation statutory as well as Research and development appeared to have the greatest influence on the taxpayers self-tax compliance at Ilala tax region, while training and supervision and the advice and guidance appeared to have not well been conducted. Based on the study findings, it is recommended that there is a need for training, orientation, seminars, counseling and motivation of the tax audit staff in order to improve workers performance which will influence taxpayers’ self-tax compliance.