Assessing the role of tax and revenue management System (tarms) on tax compliance: a case study of ZIMRA.

Abstract

This study assessed the role of the Tax and Revenue Management System (TaRMS) on tax compliance at the Zimbabwe Revenue Authority (ZIMRA). The study was motivated by the need to determine whether digital tax administration has improved tax payer registration, filing and payment compliance in Zimbabwe. The objectives were to examine the influence of TaRMS on compliance behaviour, identify implementation and user challenges, evaluate the operational effectiveness of TaRMS within ZIMRA and propose strategies for strengthening voluntary compliance. The study adopted adescriptive case study design and used questionnaires and semi-structured interviews to collect data from SME taxpayers and ZIMRA officials. Purposive sampling targeted one hundred and sixty respondents with direct TaRMS experience from the major cities in Zimbabwe. Quantitative data were analysed using frequencies, percentages, chisquare tests and Spearman correlation, while qualitative responses were analysed thematically. The findings show that TaRMS has improved ZIMRA’s internal monitoring, case management and visibility of taxpayer histories. However, taxpayer rcompliance outcomes remain mixed. Many SME taxpayers reported difficulties with filing timeliness, return accuracy, payment compliance, system downtime, slow processing, low digital literacy, limited support and payment reflection delays. Penaltyexposure was also high, with system challenges, lack of awareness and filing mistakesidentified as major causes. The study concludes that TaRMS has significant potentialto improve tax compliance, but its effectiveness depends on system stability, tax payer training, payment integration, responsive helpdesk support, internal staff capacity andfair penalty-resolution mechanisms. The study recommends continuous technical lupgrades, mobile-friendly design, targeted taxpayer education, real-time payment integration and measurable performance monitoring indicators for TaRMS.