Authors: Priscus Munguasifiwe (Mzumbe University, Tanzania), Cosmas Mbogela (Mzumbe University) and Joseph Kiria (Mzumbe University)
Abstract: This study examines the influence of taxpayers’ trust in the Government on income tax compliance behaviour in the stages of registration, correct declaration of income and payment of taxes within due dates. Data was collected from six tax regions of Tanzania. Descriptive statistics and Partial Least Square measures were used in data analysis. Based on the findings, the study concluded that taxpayers who have higher level of trust in the government are more willing to register in the tax system and make correct declaration of their income. However, higher level of trust in the government does not significantly influence their decisions to pay taxes within due dates. The study suggests that other factors, such as ability to pay and financial conditions of the taxpayers may hinder the taxpayers’ obligation to pay tax. In addition to enhancing the level of taxpayers’ trust in government, tax authorities should use various administrative measures to ensure taxpayers’ compliance. For instance, they can use various forms of communication to remind taxpayers about consequences of non-compliance.