Factors Affecting the Adoption of Electronic Tax Filing in Ethiopia: Perception of Taxpayers’
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Date
2018-06
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Addis Ababa University
Abstract
This study sought to assess perception of taxpayers’ on factors affecting the adoption of electronic tax filing system in Ethiopian. The general objective of this study was to assess perception of taxpayers’ on factors affecting the adoption of electronic tax filing system in Ethiopia. The study was guided by six specific objectives: (i) to analyze how taxpayers’ perceived relative advantage influence electronic tax filing adoption, (ii) to determine the extent to which taxpayers’ perceived complexity affect the adoption of electronic tax filing system, (iii) to assess the impact of Compatibility as a factor in influencing electronic tax filing adoption, (iv) to assess how perceived risk influence the adoption of electronic tax filing system, (v) to evaluate the existence of government support to taxpayers’ as a factor that affect electronic tax filing adoption and (vi) to analyze how taxpayers’ resistance to change affects the adoption of electronic tax filing system. The study combined the technology acceptance model (TAM), innovation diffusion theory (IDT) and the theory of reasoned action (TRA) with perceived risk and resistance to change as another constructs which was covered in the literature to present an extended model. The study was designed as a descriptive study. The study population comprised all electronic tax filing eligible taxpayers’ in Ethiopia (35,956). A sample size of 150 was selected for this study. Unstructured in-depth interview and structured survey questionnaire was used to collect data from the respondents’. Random sampling method was used to collect information from the taxpayers’. The Statistical Package for Social Sciences (SPSS) version 23 was used to analyze the feedback and generate descriptive statistics used to make inferences on the population. From the study’s findings, respondents’ felt the Ethiopian electronic tax filing system was useful with many relative advantages. With regard to the complexity of the system, the study found that the online system at the Ethiopian Revenues and Customs Authority was operationally easy and not complex to be adopted. The study also established that majority of the taxpayers’ found the electronic tax filing system compatible and affordable with existing and past trends. The study further found that respondents’ felt the usage of the online tax filing system would infringe on their privacy and lack of confidence with the security issue was considered as barrier for the adoption electronic tax filing system in Ethiopia. Regarding government support factor, the study proven that, taxpayers’ in Ethiopia are receiving inadequate support from the government which contribute for the low uptake of the system by the taxpayers’. The study finally recommended that the Ethiopian Revenues and Customs Authority (ERCA) should conduct continuous training and sensitization of the online system. There is also the need for policy interventions by the government and other stakeholders to facilitate and equip the electronic tax filing environment with the necessary IT and other infrastructures. The study further recommended that, the Ethiopian Revenues and Customs Authority (ERCA) should reassure taxpayers’ of the reliability of the system by including easily visible privacy statements on their sites to decrease perception and fear of risk.
Description
A Thesis is submitted to the department of Accounting and Finance of Addis Ababa University in Partial Fulfillments of the Requirements for the Degree of Master of Science in Accounting and Finance
Keywords
Electronic Tax, Tax, Taxpayers