Taxpayers’ Perception Towards Fairness: Personal Business Profit Taxpayers in Addis Ababa

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Addis Ababa University


This study investigates the fairness perceptions of Addis Ababa City business profit taxpayers and its impacts in their perceptions, together with other variables. A theoretical framework was developed based on the equity, distributive justice, and procedural justice theories. The study adopted a mixed method research approach to test the hypotheses and answer research question. The data collected from 230 business profit taxpayers of which 200 were through distributing of self-administered questionnaires and the remaining 30 through in-depth-interview. The latest statistical package (SPSS) software, correlation and regression analysis, were used to analyse the survey and thematic analysis was applied to in-depth interviews. The results of this combined research methodology suggest that Addis Ababa City business profit taxpayers did not perceive positively in respect of general, vertical, personal, exchange, and administration fairness except horizontal fairness on the prevailing business profit tax system. With regard to tax knowledge and complexity, the finding of the paper showed that, the taxpayers did not have sufficient knowledge and there were no easily understandable and vague procedures of the business profit tax system. Finally the thesis suggests a series of measures, which could be taken by the government in general, and tax authorities in particular; improving policy and administration issues, educating the taxpayers and conducting awareness creation and consultation sessions, and providing all necessary social service to the public, as well as maintaining the tax system fair and equitable



Personal business, Taxpayers, Perception towards fairness