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The effectiveness of electronic fiscal devices in ensuring tax compliance among small business owners of Arusha-Tanzania.

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This study assessed the contribution of Electronic Fiscal Devices (EFDs) in tax compliance among small business owners of Arusha, Tanzania. The government of Tanzania invests effort to ensure that revenue adequately supports development projects; however, there is continued reliance on external sources of funds to support development projects. This poses a question on how the introduction of EFDs would increase tax compliance for sustainable government income generation. The first objective of the study determined whether the fear of whistle-blowers impacts the rate of using Electronic Fiscal Devices. Secondly, the study determined whether the perceived level of punishment due to non-compliance impacts the rate of EFD use. Furthermore, the study determined the impact of EFD use on audit effectiveness, the level of transparency and fairness in tax procedures. Lastly, the study determined the impact of EFD use, the level of transparency, fairness in tax procedures, and the audit effectiveness on tax compliance. Overall the study used mixed methods. In addition, the study used a quantitative sample of 279 respondents obtained through systematic sampling. Also, it used a qualitative sample of 10 respondents obtained conveniently. Additionally, face and content verification were used for validity confirmation, and the Cronbach Alpha tested the reliability of the data. All quantitative questions used a 5-level Likert scale. Data was analysed using descriptive procedures, One Way ANOVA, Chi-Square, and ordinal regression. The following were the findings of the study: First, the fear of whistle-blowers determined the rate of using EFDs. On the other hand, audit effectiveness impacted tax compliance. Lastly, the use of EFDs in tax audits impacted tax compliance.


Doctoral Degree. University of KwaZulu-Natal, Durban.


Tax procedures--Impartiality.