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VOL. 6, ISSUE 1 (2024)
The effect of electronic fiscal devices (EFDs) program on tax compliance: A case of SMEs in Lusaka
Authors
Bwalya Kaoma, Mayumbo Nyirenda
Abstract
This study investigates the impact of an
effective Electronic Fiscal Devices (EFDs) program
on tax compliance, specifically focusing on Small and Medium-sized Enterprises
(SMEs) in Lusaka. Employing a quantitative approach within a correlational
research design, the research explores the relationship between EFDs and SMEs'
tax compliance behaviours. The population under study comprises 3000 SMEs, with
a sample size of 322 participants. Data collection utilized a structured
questionnaire. The study's results reveal intriguing insights. The model
employed achieved an R2 value of 0.296, indicating that the
variables within the model collectively account for 29.6% of the variance in
tax compliance changes among SMEs. Among the variables, ease of use and
reliability demonstrated significant impacts on tax compliance. These findings
imply that SMEs are more likely to adhere to tax regulations when they find the
EFDs system user-friendly and reliable. However, the variable of responsiveness
was deemed non-significant, suggesting that the speed and effectiveness of
customer support in EFDs implementation do not significantly influence SMEs'
tax compliance behaviour (p > 0.05). This study provides valuable insights
into the intricate relationship between EFDs and tax compliance among SMEs. The
significance of ease of use and reliability emphasizes the importance of
designing EFD systems that are intuitive and dependable, as these aspects
contribute positively to tax compliance behaviour. Conversely, the
non-significance of responsiveness implies that while customer support is
valuable, it might not be a primary factor driving SMEs' tax compliance
decisions. This research contributes to the understanding of how
technology-driven tax systems impact compliance behaviour within the SME
sector. The findings can inform policymakers and tax authorities in designing
and implementing EFD programs that effectively enhance tax compliance among
SMEs.
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Pages:70-76
How to cite this article:
Bwalya Kaoma, Mayumbo Nyirenda "The effect of electronic fiscal devices (EFDs) program on tax compliance: A case of SMEs in Lusaka". International Journal of Educational Research and Development, Vol 6, Issue 1, 2024, Pages 70-76
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