Influence of Interconnected Systems on Tax Audit Effectiveness in Tanzania

Abstract

This study examines the influence of interconnected systems on tax audit effectiveness in Tanzania. The study employs quantitative methodology informed by the Task-Technology Fit (TTF) Theory. It also utilises Structural Equation Modelling (SEM) to analyse the survey data collected from TRA tax auditors. The findings indicate a robust positive correlation between interconnected systems and audit effectiveness, with notable contributions from system integration capability and real-time data synchronization. These technical elements enable audit accuracy, efficiency, and compliance enforcement in tax auditing. This study enhances theoretical comprehension by situating digital transformation within a developing economy, thus broadening the TTF framework to the realm of public tax administration. The study recommends policymakers and tax authorities to emphasise system interoperability and real-time integration as a strategy to improve audit performance in environments with limited resources.