This paper is as equally important to developing countries Tanzania and the rest of the world. Medium enterprises employ between 50 and 99 people or use capital from Tshs 200 million to Tshs800 million. Lubua 2014 points out that voluntary tax compliance is very important in the whole process of tax administration in Tanzania. In addressing the importance of internal generated revenues, Adenugba and Ogechi 2013 reveal that revenue administration agencies are very important in fostering revenue collections however; their mechanisms need to be reviewed in order to work out any weaknesses noted in their operations. They cover nonfarm activities such as manufacturing, mining, commerce and services.
More than half of these businesses currently do not conduct e-commerce 54 percent nor have plans to do so in the next year. Foremost of course of these challenges is ensuring that the business survives. Key attributes of tax administration apart from tax morale and voluntary tax compliance are sensitization about the importance of paying taxes in order to enable government to provide quality social services to the general public. For the property tax, the case is somehow astonishing because tax rate are very minimal and enforcement against non compliance is simply missing. Most entrepreneurs do not realize that the procedures in place for managing the business need to be well designed to reduce the incidence of errors.
Among other things, they employ relatives, friends and those in their networks of relations regardless to whether these are competent in business or not. According to Adebisi and Gbegi 2013 , proper use of public funds has strong influence on enhancing tax morale and compliance for tax payers. It also allows you to accept potential citations to this item that we are uncertain about. However, while the shadow economies of developing countries are characterized by low capital intensities, small scale of operation, traditional technologies, and often low profit margins; unsanctioned production in transition economies is more often done in big enterprises Stiglitz; 2009. For the last twenty-five years he has helped companies use financial systems and processes to grow their business. He said those memories will influence his whole life. The authority should establish clear and transparent operating policies to be well adhered by tax collectors.
Despite of the robustness of the figures above, more effort is required in order to capture all sources of tax revenues. Actually I was not surprised when I heard he went to Africa to be a volunteer because I knew he was a worm heart man. Ideally, such measures should be combined so as to maximize their effort on tax compliance and maximizing government revenue. Aurioll and Warlters 2005 suggest that developing country governments consciously need to relax and open barriers to entry into the formal sector in an effort to enhance tax administration and maximize tax revenue. Many developing countries in fact have placed Small and medium enterprise development and promotion on top of their economic agenda. Due to the importance of voluntary tax compliance, the author recommends effort on awareness of tax laws to all tax payers in order to improve government revenues. In order to achieve all these services, governments require an efficient and well-designed tax system equipped with strong tax administration.
Only quality products can meet the challenges in global market. The system of fairness, trust and a sense of acceptance or belonging among citizens who share a unified, national identity Uslaner, 2003 may bear very significant consequential situations and alternative acts of social conduct that mitigate non-compliance. The efforts of collecting tax revenues cannot be achieved unless there is strong tax administration which ensures proper tax collections and minimizing or engulfing tax evasion. Often this Accountant is capable of preparing the necessary compliance referred to above. It is clear that independent revenue administrations should be given mandate and being fully responsible for their own recruitment, training, and salary structure in order to control general conduct of the tax collectors.
Once you spend the time to recognize a weakness -- as long as it is not in a core area for the specific business -- it often can be compensated for without a lot of time, effort or money. You can help correct errors and omissions. Their study revealed that effective enforcement machinery is very significant in increasing tax revenue. Once awareness is established, solutions are easier to find. Methodology This is a desktop studying which has considered published and unpublished materials. Guth, Lerati and Sausgruber 2003 point out that decentralization and centralization have different operating environment on tax collection issues.
Administrative and compliance cost are very important aspects of tax compliance and should not be ignored when designing efficient and effective compliance strategy. The old saying that you cannot manage what you do not measure is so true. If nothing else, it often alerts you to a change from the norm much sooner than waiting until you otherwise become aware of it. Kelly 2000 points out that major problem exist in property tax administration particularly for developing countries. For all these to be achieved, Tanzania needs strong tax administration equipped with tax awareness to tax payers, tax morale and voluntary tax compliance. The proper means of achieving tax compliance need to be designed in such a way that can help to deal with tax evasion and tax avoidance.
As a percentage of tax revenue loss to average government revenue, Tanzania has lower rate of tax loss as compared to other countries but the amount lost is very substantial. This is why the project has mobilized multi-stakeholder working groups including local government, private sector representatives and civil society organizations , reinforced their managerial and technical competence, and entrusted them to coordinate the development of future joint initiatives. This allows to link your profile to this item. It is a process that require critical measures being undertaken by all the sectors of development. Concluding Remarks and Recommendations Even though paying taxes is a primacy civil obligation, the level of voluntary compliance remains low. This can be made even worse where capital goods are required to process the goods and the company cannot finance the acquisition of these capital assets.