Browsing by Author "Zekarias, Mekonnen"

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    An Assessment of Size of Compliance costs, Tax knowledge and Tax compliance of Medium Enterprises Owned by Category “A” Tax payers: The Case of Lideta Sub city of Addis Ababa City Administration
    (Addis Ababa University, 2018-10) Zekarias, Mekonnen; Frehiwot, Gebrehiwot (PhD)
    The objective of the study is to assess the size of tax compliance cost incurred by medium enterprises that fall under category “A” taxpayers division, the tax knowledge level of the owners of the businesses and the degree of tax compliance that exist among them. The research is quantitative one with a descriptive research design.140 sample participants were selected randomly from a total population of 220.Data was gathered through self-administered questionnaires that comprised of both closed and open ended questions and the data collection process resulted in a 100% rate of return. Quantitative method of data analysis was carried out with the use of SPSS and Microsoft Excel softwares.The results attained indicate that average tax compliance cost incurred by each firm that outsources its tax affairs amounts to Birr 75953 per year and firms that use in-house staff service to handle their tax affairs incur a cost of Birr 99040 per year. Moreover, the results indicated that the business owners are both highly aware of tax laws and rules and compliant.Eventhough the results for tax knowledge and tax compliance aspects are desirable, the amount of tax compliance cost incurred by the businesses is not small enough to be ignored. Therefore, it is recommended thatERCA needs to consider the use of E-filing, raising business tax thresholds and train tax payers on efficient use of resources in order to minimize their tax compliance burden.