Impact of Electronic Fiscal Device on Perceived Transparency in Tax Audit: A Case of Arusha-Tanzania
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Date
2023
Journal Title
Journal ISSN
Volume Title
Publisher
Adonis and Abbey Publishers Ltd
Abstract
In recent years, the application of Electronic Fiscal devices (EFDs) in developing countries has significantly increased. This increase in use resulted from an increase in awareness of its perceived benefits such as efficiency of tax
collection, reduction of tax evasion and improvement of tax audit transparency. This study assessed the effect of EFD use on the tax audit effectiveness and the perceived degree of transparency in tax audit processes among small
entrepreneurs in the Arusha region of Tanzania. The study was conducted on small businesses because of their significance in driving the economy of developing countries. Primary data was collected using a close-ended
questionnaire distributed to 279 small business owners. An interview was also conducted to supplement the data collected from the questionnaire. Based on the outcomes of one-way analysis of variance (ANOVA) and ordinal regression, this study found that the use of EFDs affected the perceived degree of transparency in the tax audit. The authors recommend that the revenue authority should create more awareness of EFDs and extend its use to other
businesses not currently covered. This is necessary to enhance the effectiveness of the tax audit, given its positive impact on transparency.
Description
Keywords
Electronic fiscal devices, Transparency, Audit
Citation
Malima, A.E., Pillay, S. and Obalade, A.A., 2023. Impact of Electronic Fiscal Device on Perceived Transparency in Tax Audit: A Case of Arusha-Tanzania. African Journal of Business and Economic Research, 18(3), p.263.