Analysis of Taxpayers’ Intention to Use Tax E-Filing System in Tanzania: Controlling for Self-Selection Based Endogeneity

Abstract

This paper aims at analysing factors that influence taxpayers’ intention to use electronic tax filing system. The paper employs Technology Acceptance Model (TAM) framework. We first estimated traditional TAM model using OLS. Using econometric tests we observed self-selection endogeneity bias in intention to use e-filing system. To account for this bias we estimated endogenous switching regression model. Results of endogenous switching model show that risk, social influence and performance expectancy have significant effects on intention to use e-filing. Further, we found that these factors affect users and non-users intentions differently, calling for differentiated strategies in influencing e-filing use intention. Lastly, we recommended both administrative and technical issues to be considered for enhanced intention to use and adoption of e-filing system.