Influence of e-tax system on tax revenue collection in Tanzania large taxpayers : a prior and posterior analysis

Abstract

Purpose: This paper intended to examine the influence of the e-tax system on tax revenue collection in Tanzania. -- Design/Methodology/Approach: The study made use of secondary data gathered in two groups, data from 2006-2011 (prior e-tax system) and 2012-2017 (post e-tax system) was used. An ex-post-facto research design with paired sample test compared the mean values of the pre and post-e-tax system to confirm if the observation between the two sets of mean is zero or significantly different from zero. -- Findings: The results depict that the use of the e-tax system has positive significant impact on tax revenue generation. Correspondingly, increase in number of registered large taxpayers has a positive effect on tax revenue. -- Originality/Value: This study contributes on the awareness to both large taxpayers and the government, that is, the use of the e-tax system had an impact on lessening tax compliance cost and assists the government to collect taxes in cost efficient ways.