The document discusses a study on the impact of electronic taxation systems in Namibia. The study utilized the decomposed theory of planned behavior to identify factors influencing taxpayer acceptance of e-Filing. A questionnaire survey of 48 taxpayers in Windhoek found that those using manual filing lacked computer/internet access, the main barrier to e-Filing usage. Those using e-Filing reported perceived usefulness as the primary determinant. Understanding acceptance factors can improve future e-government initiatives in Namibia and other developing countries.

1. BOHR International Journal of Financial Market and Corporate Finance
2021, Vol. 1, No. 1, pp. 33–37
Copyright © 2021 BOHR Publishers
https://doi.org/10.54646/bijfmcf.006
www.bohrpub.com
An Investigation into the Impact of the Electronic Taxation System:
A Case Study of Namibia
Kylie Shannan Fourie and Nikodemus Angula
University of Namibia, Windhoek, Namibia
E-mail: kalawang94@gmail.com.na; chcangula@gmail.com/angulan@unam.edu.na
Abstract. The Namibian government has benefited to date from information technology in many ways. The
current research attempts to investigate the impact of electronic taxation systems, how well it is used, under-
stood and utilized in developing countries. The importance of understanding and influencing Namibian citizens’
acknowledgement of E-Government services is key, given the substantial investment in government communica-
tion, information system technology and the potential for cost saving. One of the most successful E-Government
initiatives, the electronic filing system (e-Filing), allows tax returns to be filed electronically. Despite many taxpayers
adopting this method, a large number are still using the traditional manual method of filing tax returns. A descriptive
research approach, namely the Quantitative method was used to evaluate the impact of electronic taxation systems.
This study utilized the decomposed theory of planned behavior with factors adjusted specifically for Namibia as a
developing country to identify the possible determinants of user acceptance of the e-Filing system among taxpay-
ers. This exploratory study was conducted by means of a questionnaire survey. The questionnaires were completed
by 48 individual taxpayers in Windhoek, which made up the whole sample. The research instruments used were
questionnaires. The data and information collected was inspected for accuracy and completeness. Data collected
was presented in the form of tables, charts and graphs for better understanding. After the data was analyzed the
following findings and conclusions were drawn. Taxpayers using the manual method lack facilitating conditions
such as access to computer and internet resources, which was the most significant barrier to e-Filing usage, while
taxpayers using the electronic method reported perceived usefulness as the primary determinant in their decision to
use e-Filing. Understanding these acceptance factors can extend our knowledge of taxpayers’ decision-making and
lead to better arranging and usage of future EGovernment initiatives in Namibia and other developing countries.
Keywords: E-Government, e-Filing, Tax returns, Electronic filing system (ITAS), Namibian Inland Revenue
department.
1 Introduction
Client acknowledgement of electronic transactions has
moved forward altogether over the past decade, with
more people utilizing the web a medium of exchange. The
use of internet has been widespread and has been more
diversified. The value-added of internet will relatively be
increased which also benefits the users (Pavlou et al., 2007;
Barako et al., 2008). As a result, there are more and more
corporations or organizations wish to transmit information
or through the internet (Chi et al., 2007; Haque et al., 2009).
E-service is the term alluding to the arrangement of
client administration by means of the internet which is
esteemed by government in every country (Efebera et al.,
2004; Briggs, 2008). Namibia have an important task in
their e-governments, internet taxation service that is why
ITAS was created to clarify computer utilization. The objec-
tive of TAM is to supply a clarification of the determinants
of computer acknowledgement that’s competent of clarify-
ing client behavior over a wide extend of conclusion client
computing innovation and client populaces, whereas at the
same time being both prudent and hypothetically advo-
cated (Davis, 1987).
Developed countries have conducted studies, but no
such study has been conducted in Namibia. These stud-
ies contain factors that are applicable to their specific
countries; however, there are many unique determinants
specific to Namibia as a developing country that need
to be investigated. The research problem that this study
33

2. 34 Kylie Shannan Fourie and Nikodemus Angula
therefore aims to address is the identification of the deter-
minants of user acceptance of e-Filing in Namibia (e.g.
Ramoo, 2006; Fu, Farn and Chao, 2006; Hung, Chang and
Yu, 2006; Carter, Schaupp, Hobbs and Campbell, 2011).
1.1 Statement of the problem
It appears clear there’s need of consider that has been con-
ducted within the region of Technology Acceptance Model
(TAM) among e-Filing taxpayers, particularly in Namibia.
Hence, the study aims to contribute to the information of
data innovation. Due to this issue on utilizing e-filling tax-
payers were awkward with e-filing as they were new with
electronic exchanges and a few said they were not com-
puter smart (The Star, May 4th, 2006). In addition, most
of taxpayers’ were 12 very concerned if Inland Revenue
Department directly changes the whole manual tax return
process to e-Filing because of their inability to use inter-
net and less computer skill, slow response to e-Filing was
mainly because of people’s habit of doing their assessment
at last minute. It is difficult to accept a new technology
since there is a concern about the security (The Star, Decem-
ber 31st, 2003).
If IRD is to achieve its goal of paperless transactions and
realize a return on its investment with the e-Filing system,
there is a need to understand the acceptance decision of
taxpayers with regard to the e-Filing system and identify
the factors that can affect their decision to use or not use
this system.
1.2 Objectives of the study
1.2.1 The main research objective
The primary objective of the study was to assess the prob-
lems and prospects of E-Filing of income tax returns based
on this primary objective,
Other specific and detailed objectives were drawn as
follow:
• To consider the concepts and need for E-filing system
of income tax.
• To know whether the modern system of E-filing is a
welcoming note for developing country.
• To explore whether the tax payers have issues while
using E-filing system.
• To compare the satisfaction level of assesses between
E-filling and manual filling of tax returns
1.3 Significance of study
Throughout this study, the main focus would be on taxpay-
ers’ intention in using e-Filing exploring their intention. In
addition, this study assisted the Inland Revenue Depart-
ment to improve e-Filing performance according to TAM
determinants and in line with the Government’s Informa-
tion Technology Policy. Based on the result of this study, it
is expected that there be more trainings and seminars to be
conducted in order to improve e-Filing usage and compli-
ance. However, this system will be fully implemented after
it is widely accepted by the population in Namibia. Ericah
Shafuduh executive director and Justus Mwafongwe com-
missioner for Inland Revenue Department have stated that
the process of upgrading e-Filing system services for tax-
payers will improve the level of taxpayers’ compliance.
Subsequently, the intention of taxpayers will be enhanced
positively and in turn it will grow their compliance.
Dates will be extended for submission giving taxpayers
more time to submit their returns on ITAS, incentive pro-
grams are being introduced to taxpayers (Bandt, 2019).
1.4 Delimitation of the study
The study will be conducted in Windhoek. Although Min-
istry of Finance is situated in other regions the study will
only focus on individuals Windhoek due to the inadequate
resources at the disposal of the researcher.
1.5 Limitations of the study
There are several limitations of the study. The sample of
the experimental group is small. There will be only 50
taxpayers and it might not represent the majority of the
taxpayers of Windhoek. Besides, this research only con-
ducted descriptive research, meaning only describes data
and characteristics about the population or phenomenon
being studied.
1.6 Theoretical framework adopted
by previous studies
Research model. This study is a combination between the
model of TAM and TPB and a construct from a previous
research (Wang, 2002; Chang et al., 2005; Lu et al., 2010).
The build of this research exist to ease the use, purpose,
credibility, attitude, subjective norm, social control, inten-
tion, and behavior.
2 Methodology
A descriptive research approach, namely the Quantitative
method was used to evaluate the impact of electronic tax-
ation systems. This study utilized the decomposed theory
of planned behavior with factors adjusted specifically for
Namibia as a developing country to identify the possi-
ble determinants of user acceptance of the e-Filing system
among taxpayers. This exploratory study was conducted
by means of a questionnaire survey. The questionnaires
were completed by 48 individual taxpayers in Windhoek,

3. An Investigation into the Impact of the Electronic Taxation System: A Case Study of Namibia 35
which made up the whole sample. The research instru-
ments used were questionnaires. The data and information
collected was inspected for accuracy and completeness.
Data collected was presented in the form of tables, charts
and graphs for better understanding. After the data was
analyzed the following findings and conclusions were
drawn. Taxpayers using the manual method lack facili-
tating conditions such as access to computer and internet
resources, which was the most significant barrier to e-
Filing usage, while taxpayers using the electronic method
reported perceived usefulness as the primary determi-
nant in their decision to use e-Filing. Understanding these
acceptance factors can extend our knowledge of taxpayers’
decision-making and lead to better arranging and usage
of future EGovernment initiatives in Namibia and other
developing countries
3 Literature Review
This study has borrowed from existing research done on
the same topic of study on tax compliances among indi-
vidual taxpayers. It is influenced by the following theories
which have been put across by various scholars with tax
return technologies to speed up tax form filling.
3.1 Overview of e-filing in Namibia
Inland Revenue Department (IRD) aims to diminish man-
ual or paper-based Income Tax Return Forms (IRTF) and
motivate taxpayer to use e-Filing service. This applica-
tion was initially introduced to corporate taxpayers in 2018
and a year later to individual taxpayers in 2019. Minis-
ter of Finance Callle Schlettwein, said the ministry’s point
is to reach target of 90 percent of the citizens populace
as e-filers by June 2020. In 2020, approximately 13 per
cent of the total registered individual Namibian taxpayers
is using e-filing application (Bandt, 2019). The exchanges
conducted through transactions e-Filing is secured by open
key framework innovation which allows users to file their
IRTF online from any location. This application is also to
assists the users to fill, compute and submit their IRTF eas-
ily, safely, and accurately. It also allows Tax refunds to be
processed early if IRTF submitted online. The types of ITRF
that can be sent via e-Filing Return for Individual, Return
for Individual Business or Farmer, Return for Salaried Per-
son or Pensioner, Return for Provisional Tax, Return for
Employee Tax, Return for Companies and Close Corpo-
ration, Return for VAT, Return for VAT Import, Return
for Withholding Tax on Services rendered by non-resident,
Return for Withholding Tax on Interest for Residents,
Return for Withholding Tax on Interest for Non-Residents,
Return for Tax on Royalties, Return for Tax on Royalties,
Return for Reconciliation of Tax Deductions. Return for
Individual Business of Farmer needs to be provided by an
individual who is a resident in Namibia and at the same
time has a business income. On the other hand, return for
SalariedPerson or Pensioner is for individuals where their
incomes are assessed under Section 1 of the Income Tax Act
1981 and be completed by individual residents who have
income other than business. The due date for submission
of Return for Salaried Person or Pensioner is 30th June but
this year extension till end of September 2020 were given.
Disappointment to comply will result of the penalty under
subsection 24 of the Income Tax Act 1981.
4 Discussion of Results
This section presents and discusses the findings of the
study. The respondent of this study was personal taxpayers
who utilize e-filing tax system and are situated in Wind-
hoek. The researchers collected the data from 22 May until
30 September 2020. This is due to the fact that individ-
ual taxpayers need to submit their e-Filing return before
30th of June, which was extended till 30th of September
2020 and extended again because of the excel spread sheets
created by that were not successfully used by businesses.
The number of questionnaire spread was 55 and the ones
could process were 50 questionnaires or around to 96%.
The number of samples and the rate of questionnaire return
are shown in Table 1.
A total of 55 questionnaires we sent out 48 sampled
respondents completed the questionnaires translating to
98% response rate. The researcher considered the response
adequate since respondents from all the taxpayers’ strata as
per the sample design responded. According to Mugenda
(2009), a response rate of over 60% of the respondents is
considered adequate but if unresponsive rate is high, the
researcher is required to do a follow up study to check the
factors behind the lack of response since it can be a relevant
factor in the study. High response rates reduce the risk of
bias in the responses.
4.1 Discussion
4.2 Analyzing the demographic rate
of respondents
The results as presented in Table 2 showed that majority of
the nine respondents were female between the ages of 20
Table 1. Sample and the rate of return of the questionnaire.
Description Total Percentage
Spread Questionnaire 55 100%
Unreturned Questionnaire 6 12%
Returned Questionnaire 49 98%
Incomplete Questionnaire 1 2%
Unprocessed Questionnaire 1 2%
Processed Questionnaire 48 96%

4. 36 Kylie Shannan Fourie and Nikodemus Angula
Table 2. Displays the respondent demography data.
5 4
2 1
9
6
6
2
AGE 20-29 AGE 30-39 AGE 40-49 AGE 50 ABOVE
Demographic Rate
Male Female
Table 3. Sources of awareness regarding e-filling.
2%
0%
8%
8%
82%
Source
Newspaper
IT Website
Media
Friends
All of the Above
to 29 while five respondents were male between the ages
of 20 to 29, this gives a majority of fourteen respondent’s
the total male respondents were 12 which gives fair bal-
ance. The least respondents were 50 and above as most
of the people that age are retired and are not as computer
literate.
4.3 Analyzing the source of awareness
regarding to e-filling
The above Table 3 shows the awareness of the respon-
dents towards electronic filing. The study concluded that
although, maximum respondents learned about ITAS form
all the sources which include the newspapers, IT Web-
sites, media and friends. This indicates that ITAS is widely
spread all over Windhoek.
4.4 Analyzing the places individual taxpayers
made use of e-filling
The above Table 4 shows the location of e-filling of the
respondents towards. Majority of the respondents con-
cluded that the make use made use of all the above
mentioned locations which are cyber cafes, the offices and
their home, which suggest that e-filling can be done at
any location as long as they have internet connection.
Table 4. Location of e-filling.
0%
25%
0%
75%
Locaon
Cyber Café
In the Office
At Home
All of the Above
Table 5. Time consumed.
8%
21%
40%
31%
Time
More than 2 hours
1 to 2 hours
30 min to 1 hour
Less than 30 min
Thus benefiting anyone who might not be close to IRD at
the time, making filling immediate and easy.
4.5 Analyzing the time each individual
spends when filling a return of ITAS
Table 5 analyzed the time spent when filling a return ITAS,
this study revealed that 40% of individual taxpayers take
30 min to an hour when submitting on ITAS, 31% said that
they fill with in 30 min, whereas 21% take an hour to two
hours and 8% take more than two hours.
4.6 Analyzing the errors and difficulties faced
by individuals while using e-filling
Table 6 shows whether ITAS had any errors and difficulty
when submitting returns and the study revealed that 96%
of the individuals faced errors and difficulty.
4.7 Analyzing whether e-filing is costly
Table 7 shows whether ITAS was costly the study infor-
mation on one-filling has helped reduced cost of taxpayers
costly, 19% said yes it is costly while 81% said no it is not
costly.

5. An Investigation into the Impact of the Electronic Taxation System: A Case Study of Namibia 37
Table 6. Errors and difficulty while e-filling.
96%
4%
Errors Difficulty
Yes
No
Table 7. Was the digital signature costly.
81%
19%
Costly
No
Yes
5 Conclusion
Based on the findings, conclusion, recommendations and
the limitations of the study, further research could be sug-
gested to cover the following areas in order to confirm the
findings of this study and expand the knowledge in this
area. First, further studies should be done on small tax-
payers in other tax districts either considered to be more
advanced or less advanced than of Windhoek in order to
have a holistic conclusion on the effect of online system
on tax compliance in Namibia. Similarly, a study should
be done among medium taxpayers as well as individual
taxpayers.
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