Abstract
Tax law simplification was among tax reform strategies formulated to address tax law complexity and improve tax compliance. Although it is about two decades of implementation of the new tax laws, little is known on the effect of such simplification on tax compliance. This paper examined the influence of the Income Tax Law (ITL) simplification on tax compliance in Zanzibar. A survey was conducted among 367 medium taxpayers registered with TRA €“ Zanzibar. Descriptive and Structural Equation Model were used for data analysis. The findings reveal that tax compliance level of medium taxpayers is high and the ITL simplification positively and significantly influenced tax compliance among medium taxpayers in Zanzibar. The study found medium taxpayers considered the ITL as readable, though the challenge was on its understandability and applicability. This study urges tax authorities to improve the ITL education and establish a special unit to deal with medium taxpayers only.
Recommended Citation
Khalfan, Shuweikha S.; Kitindi, Ernest; and Chalu, Henry
(2020)
"Income tax law simplification and tax compliance: a case of medium taxpayers in Zanzibar,"
Business Management Review: Vol. 23:
No.
1, Article 1.
Available at: https://doi.org/10.56279/bmrj.v23i1.1