THE RELATIONSHIP BETWEEN TAX AWARENESS LEVELS AND TAX PAYMENT DEFAULTS IN KILIMANJARO REGION

Abstract

The default in tax payment has been growing as a tax issue particularly in developing countries around the world. Generally, the study aimed to examine the relationship between tax awareness levels and tax payment defaults. The study was guided by the optimal tax theory as the basis for the study. A cross-sectional research design was adopted while systematic probability sampling technique was used to obtain 364 respondents. Data were collected through questionnaire while descriptive statistics and Multiple Linear Regression Models were used in analysing data. The findings showed that the majority of respondents agreed that tax awareness levels had a significant influence on the tax payment defaults. Besides, the findings revealed that there is a statistically significant relationship between tax education and tax payment defaults. The study concluded that there is a relationship between tax awareness levels and tax payments defaults. The study recommends TRA management to invest much in creating awareness to the taxpayers. This can be done through conducting training, provision of mentorship forums, and dissemination of the information through televisions, radios, and social media about the importance of timely tax payments.