This study set out to investigate the influence of the electronic tax filing system on tax compliance and tax collection. Electronic tax filing system is a computerized tax administration system that is especially designed to handle general tax administration from registration, assessment, filing returns and processing of claims and refunds. Its intended purpose was to reduce the cost of the tax payer complying with URA, increase tax collection, achieve compliance and remove the inefficiencies associated with costs of movement by tax payers to URA offices to do business and present to tax payers a system that reduces their cost of compliance. The research therefore specifically sought to ascertain the extent to which e-tax has achieved its objectives and to establish the ease of use of the system and the attitude of tax payers towards the system. The study employed a survey research design and used self administered questionnaires. A sampling design of 38 respondents was selected which composed of 20 importers, 8 clearing agents and IO URA officials fi'om the IT department. Findings ji·om the study show that electronic tax filing system has improved tax compliance as it is easy for tax payers to assess their tax obligation accurately and enable them file their returns on time. On other hand, the new system has also helped ease the work of URA staff and to a small extent led to an increase in tax collection in URA. Findings ji-om the study also show that the attitude of tax payers and that of URA staff towards the use of e-tax is positive as a considerable number viewed the use of the system as being good. Findings fi·om the study further indicate that the new system has increased costs on the tax payer's side. Findings ji·om the study also show that the current e-tax servers are overwhelmed by the number of users hence they are so slow. Findings ji-0111 the study further show that the electronic tax filing system has the potential of increasing tax compliance and revenue collection in URA but a lot has to be done to avert the obstacles that may not make it possible.