The study examined tax compliance and its effects on government’s revenue generation. The specific objectives were to determine how computerization of tax collection, tax literacy, tax investigation and audits affects government’s revenue generation. The theoretical framework was based on the benefit theory of taxation, the equal sacrifice theory and the ability theory. The empirical review was be guided by the study objectives. Descriptive research design was used. The target population comprised of all the 150 business owners of Gobonimo market. Stratified random sampling technique was adopted from which a total of 52 respondents formed part of the sample size. Both primary and secondary data was used. Primary data was collected by use of the questionnaires while secondary data was collected by use of already published materials. A 1% pilot test of the sample size was computed to determine the viability of research instruments. Reliability was tested by the Cronbach’s alpha test. The researcher ensured content validity by ensuring that the questionnaire was well structured and that it contained all the relevant questions responsible to ensure the study’s purpose is achieved. Data was analyzed using SPSS software and through percentages and later presented by use of frequency tables. The study findings reveal that taxpayers lack knowledge of how to use tax machines. Also, the findings reveal that if implemented, tax computerization could results to higher tax compliance levels. The study established that taxpayers are not enlightened on the benefits of paying taxes nor are they aware of the current tax rates, current tax issues and even emerging issues in taxation. The study found out that tax authorities at Gabonimo market do not conduct tax audits aimed at ensuring greater compliance in tax payment. The study recommends for the computerization of tax through the use of tax machines such as electronic tax registers and point of sale machines. Tax payers should be enlightened on the current and emerging issues in taxation and also sensitized on the benefits of paying taxes. Taxpayers also through those sensitization forums should be informed the prevailing tax rates and how best to remit taxes to the authorities. Voluntary tax compliance should be encouraged but there should be periodic audits and investigations to ensure taxpayers are compliance as per the prevailing tax laws. This study recommends further research on the relationship between tax education and voluntary tax compliance at Gabonimo market in Somaliland and also the role of tax audits in tax compliance