The Effects of Electronic Tax Payment System on Voluntary Tax Compliance in Ethiopia: the Case of Easter Addis Ababa Small Taxpayers’ Branch Office
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Date
2023-01-06
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A.A.U
Abstract
The objective of the study is to identify the effects of electronic tax payment system on tax compliance: the case of Easter Addis Ababa small taxpayers ’branch office. The study prepared five scale based questionnaires and distributed to 350 taxpayers and 18 tax officials sample populations and was analyzed using descriptive statistics, correlation and regression analysis. The descriptive analysis showed that the electronic payment system improved the taxpayer time, job performance, accuracy, reduced costs and tax payment on timely manner. There are still existing challenges like lack of skills of the taxpayers, network fluctuation, the involvement of stakeholders, banks failure to transfer the tax paid to the Ethiopian Revenue and Customs Authority, errors of e-filling by tax payers and tripartite challenges. The correlation analysis also showed that tax compliance is strongly correlated to credibility and relatively weakly correlated to ease of use and usefulness. The regression analysis on the other hand implied that credibility has high effect on tax compliance whereas ease of use and usefulness has significant effect. Finally, the study recommends extensive training on how electronic payment could be made starting from e-filling. The ministry of revenue should enforce the banks to act according to the agreement and electronic tax payment system should include zero reporting and refund by redesigning the system.