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Taxation is measured as a reliable, predictable, and sustainable source of revenue for governments, but for developing countries like Zimbabwe, taxing the informal sector remains a difficult problem. The informal sector has been registering a rapid growth over the years but less meaningful contribution of presumptive tax to the government. The Zimbabwe’s informal sector has a very low level of tax compliance. The government of Zimbabwe introduced presumptive tax in 2005 and became enforceable in 2011.The introduction of presumptive tax to the informal sector was a way the government to mobilize revenue due to many years of  failing to meet the revenue targets. The study investigate what hinders tax compliance in informal sector a case of Zimbabwe. The study looked at the 3 factors which hinder tax compliance which are lack of accountability and transparency, lack of tax education and high levels of corruption. The study sought to make a contribution in the board of literature on this subject matter. The study used Google online self-administered questionnaire and telephone interview were used to collect primary data.  The study’s primary data and empirically findings it can be concluded that lack of accountability and transparency, lack of tax education and awareness campaigns and high level of corruption have a negative correlation relationship to tax compliance in informal sector. The researcher also expecting the same results that lack of accountability and transparency, lack of tax education and awareness campaigns and high levels of corruption undermine tax compliance in informal sector in Zimbabwe. The study also recommend various strategies in order for the government of Zimbabwe improve tax compliance in the informal sector. Zero-tolerance to corruption, continuous tax education and awareness campaigns training to the taxpayers, improving accountability and giving back to the taxpayers may help the government of Zimbabwe to changing the non-compliance behavior among the informal sector business people. The Zimbabwe government in light of the aforementioned findings, the study advises that the government has the key to maximizing the sector's potential contribution. To bring the informal sector into the tax net and maximize its revenue potential, policymakers will need to enhance and simplify the registration, change of the current presumptive tax strategy, providing tax incentive and free tax education to the taxpayers, developing social contract between government and taxpayers, having partnership with private companies in operating a whistle blowing facility and guaranteed protected to the whistle blowers reporters.

ACKNOWLEDGMENT	i
ABSTRACT	ii
TABLE OF CONTENTS	iv
CHAPTER 1	1
INTRODUCTION	1
1.1 Introduction	1
1.2 Background of the study	3
1.3 Problem statement	3
1.4 Objectives of the study and Research Questions	5
1.5 Summary of the chapter	5
CHAPTER II	7
LITERATURE REVIEW	7
2.0 Introduction	7
2. 1. Tax compliance Theories	7
2.1.1. The Deterrent Theory	8
2.1.2 Tax Morale Approach	8
2.1.3 Slippery Slope Theory	9
2.1.4 Religionist Theory	10
2.2 Definition of key words	10
2.2.2Tax compliance	11
2.3 Zimbabwe comparison perceptive	12
2.3.1 Taxation of the informal sector in Nigeria	13
2.4 Factors hinder informal sector to tax compliance in Nigeria	14
2.4.2 Lack of  Tax education and awareness campagians	15
2.4.3 High levels of corruption	16
2.5 Informal sector and taxation in Kenya	17
2.5.1 Accountability Factors	17
2.5.2 Lack of education and awareness among informal sector in Kenya	18
2.5.3 High levels of corruption in Kenya	19
2.6 Informal sector and taxation in Zimbabwe	20
2.7. Factors undermine tax compliance in Zimbabwe’s informal sector	21
2.7.1 Lack of Accountability Factors	21
2.8 Summary	23
CHAPTER III	24
THEORETICAL EXPECTATIONS	24
3.0 Introduction	24\
3.1 Significant of the study   25
3.2 Lack of accountability and transparency by government	26
3.3 Lack of tax education and awareness	27
3.4 High levels of corruption	28
3.5 Summary of the Chapter	29
CHAPTER IV	30
RESEARCH METHODOLOGY	30
4.0 Introduction	30
4.1 Research Design	30
4.2 Summary of the Chapter	32
CHAPTER V	33
FINDINGS	33
5.0 Introduction	33
5.1 Response Rate	33
5.2 Demographic Information	34
5.2.1 Gender Analysis of Respondents	34
5.3Findings	36
5.4 Data Analysis	37
5.5 Tax Compliance levels of Zimbabwe’s informal sector	42
5.7 Summary of the Chapter	42
CHAPTER VI	44
SUMMARY, CONCLUSIONS AND RECOMMENDATIONS	43
6.1 Introduction	43
6.2 Summary	43
6.3 Conclusion	44
6.4 Recommendations	45
6.5 Further area of Research	47
REFERENCE LIST	48