Improving tax compliance with emphasis on integrating social norms in tax collection practices in Tanzania

Abstract

The study focused on improving tax compliance with emphasis on integrating social norms in tax collection practices in Tanzania. The specific objectives of the study were; to examine the relationship between social norms and taxpayers’ morale, to examine the relationship between taxpayers’ morale and tax compliance and to examine the relationship between social norms and tax compliance in Tanzania. Explanatory research design with mixed methods approach was used and incorporated descriptive research Data from interviews was analyzed qualitatively and those of questionnaire were analyzed quantitative using correlation and regression. Factor analysis was done to examine whether the constructs used were good measurements for the variables. All the constructs from all the variables were confirmed to a good measure of the variables. The study found that the relationship between social norms and taxpayers’ morale was 0.782 which meant the relationship between social norms and taxpayers’ morale was strong. Also the relationship between taxpayers’ morale and tax compliance was 0.767 which meant the relationship between taxpayers’ morale and tax compliance was strong. Further the findings showed that the relationship between social norms and tax compliance was 0.855 which meant the relationship between social norms and tax compliance was strong. Regression analysis results showed a significant linear relationship between social norms, taxpayers’ morale and tax compliance (F = 40.465, sig = 0.000). The study recommended among others TRA should nurture positive social norms, which will create an enabling platform for taxpayer satisfaction, trust and thus tax compliance.