Accounting and Auditing

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Browsing Accounting and Auditing by Subject "Addis ketema sub city"

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    Determinants of Tax Compliance in the Case of VAT Registered Tax Payers: In Addis Ketema Sub City
    (Addis Ababa University, 2019-03) Abdulsemed, Shafi; Alem, Hagos (PhD)
    Tax is an important source of revenue for government’s spending and development projects. When taxes are not well administered, tax morale may be undermined and unnecessary administrative and compliance costs incurred. Literatures shows tax evasion is among the major societal problems inhibiting development in developing countries and tax noncompliance is a phenomenon, which has attracted attention of policy makers as well as researchers over the years. This paper aim at to examine perception of tax payers on VAT compliance with tax policies of the government and non- compliance of taxpayers with the tax laws is a key to further motivating and assisting the compliers and designing appropriate strategies to deal with non-compliers so that they can gradually develop the desired behavior of tax compliance. To achieve this objective, the quantitative data methods were employed. The design of the study was both descriptive and explanatory type. From 6922 small and medium level VAT registered individual tax payers and pay their tax in Addis Ketema sub city; 378 tax payers were taken for the study .Stratified sampling technique was employed to select a representative sample from the two classes of taxpayers .Data were gathered by the use of close ended self- administered structured questionnaires .Descriptive and inferential method used for data analysis statistically treated using statistical package for social science (SPSS). Tables, graphs and charts were used to present results of the analysis. The results indicates that structure of the tax system, attitude & perception of government spending and ethics toward tax compliance affect taxpayers’ compliance behavior . To solve the problems of the non-compliance behavior of the taxpayers educating taxpayers ,adopting a continuous and consistent audit program, and information about benefits of paying tax, have been a key to motivating factors and given as a recommendation.