Access of tax information and tax compliance behavior among small and medium-sized enterprises in the Kariakoo tax region

Grace M. Mvamba; Nicholaus Mwalukasa; Philbert Nyinondi

doi:10.51867/AQSSR.3.3.48

Authors

Grace M. Mvamba Sokoine University of Agriculture, Tanzania Author https://orcid.org/0009-0008-9302-1754
Nicholaus Mwalukasa Sokoine University of Agriculture, Tanzania Author https://orcid.org/0009-0001-2284-0639
Philbert Nyinondi Sokoine University of Agriculture, Tanzania Author https://orcid.org/0009-0008-6526-533X

DOI:

https://doi.org/10.51867/AQSSR.3.3.48

Keywords:

Kariakoo, Small and Medium Enterprises, Tanzania, Tax Behavior, Tax Compliance, Tax Information

Abstract

Tax information is essential for enhancing tax compliance and operational efficiency among Small and Medium Enterprises. In Tanzania, studies showed that most of SMEs do not comply on tax payment. This study investigates the influence of accessing tax information on tax compliance behavior among SMEs operating within the Kariakoo Tax Region in Tanzania. The study is guided by a Planned Behavior Theory. A cross-section research design with quantitative and qualitative approaches was employed. The targeted population was the registered Small and Medium Enterprises. Stratified random sampling was used to select 156 respondents. Data was collected through structured questionnaires and analyzed using SPSS. Descriptive statistics such as frequencies and percentages, were used for analysis and a linear regression model was used assess the influence of access to tax information on tax compliance. Furthermore, thematic analysis was used to analyze qualitative data. The study found that tax information positively influenced tax compliance behavior. The study found that tax information positively influenced tax compliance behavior (β = 0.134, p < 0.058). In additional, tax behavior intention (β = 0.159, p = 0.068), and tax attitude (β = 0.240, p = 0.037), significantly influenced tax compliance. The study concludes that tax information has a significant positive influence on SMEs’ tax compliance behavior. The study recommends that Tanzania Revenue Authority in collaboration with other stakeholders should design and implement structured tax awareness campaigns targeting SMEs. The campaigns should focus on expanding tax information sources to impart knowledge of tax obligations, rights, and procedures through accessible formats such as mobile applications, website and social media.

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