Unmooring tax compliance: The impact of information technology in the Zimbabwean small firms under presumptive taxation
In recent years, the incorporation of information technology has revolutionised presumptive taxes by enabling real-time monitoring, shortening procedures, and enhancing data accuracy, among other benefits. This study aims to investigate the association between small firms' usage of information...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2025-01-01
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| Series: | Social Sciences and Humanities Open |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2590291125001494 |
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| Summary: | In recent years, the incorporation of information technology has revolutionised presumptive taxes by enabling real-time monitoring, shortening procedures, and enhancing data accuracy, among other benefits. This study aims to investigate the association between small firms' usage of information technology and their tax compliance. This study demonstrates the direct impact of information technology in creating the framework for comprehending tax compliance under the presumptive tax. In addition, the study investigates the moderating role of education level on the relationship between information technology use and presumptive tax compliance. From a methodological standpoint, this study targeted owners and managers of small firms enrolled for the presumptive tax to respond. A questionnaire was employed as a data collection instrument. The data were collected from the owners and managers of small businesses operating in the following sectors: transport, hairdressing and saloon, informal traders, small-scale miners, cross-border traders, restaurant and bottle stores, cottage industry, accommodation as well and agriculture. SPSS and SPSS Amos version 26 were used to analyse data quantitatively. Analysing a sample of 219 owners and managers of small businesses, the study found that when information technology use increases, tax compliance is high. The study found that information technology has a significant positive impact on tax compliance. The results of the survey further revealed that the interaction of information technology use and education level on presumptive tax compliance was not statistically significant. Compared to earlier research on small businesses that are registered and unregistered, this study provides a different method of deriving results. The study recommends that ZIMRA officials conduct workshops and awareness programs among small businesses regarding the importance of information technology in handling tax affairs and the value of tax compliance in an economy. The study informs policy as it seeks to assist the government and tax officials with vital information on key factors that drive compliance in presumptive taxation. |
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| ISSN: | 2590-2911 |