Factors Influencing Taxpayers Attitude towards Paying Taxes:The Case of Medium Taxpayer's Branch office in Ethiopia.
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Date
2021-04
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A.A.U
Abstract
The aim of this research is to look into the factors that affect taxpayer’s attitudes toward paying taxes at the Ministry of Revenue's Medium Taxpayers Branch Office. Based on, firm characteristics, the tax systems and demographic factors, a conceptual framework were developed. To test hypotheses and answer research questions, the analysis used a quantitative research approach. The study's target population was 3600 taxpayers, with 360 respondents chosen as a sample from the total population. The study's data collection tool was a close end questionnaire. The responses of variables were calculated using a five-point Likert scale. Cronbach's alpha was used to determine the instrument's internal accuracy. The data was analyzed using a quantitative method, descriptive statistics (mean and standard deviation), and inferential statistics (regression analysis) using SPSS software. The study's regression analysis shown that nearly all explanatory variables, including age, gender, and educational level, as well as tax law complexity, tax rate fairness, and tax law fairness, have a positive and substantial effect on tax compliance. While the study discovered an inverse relationship between tax compliance and company size, age, and sector. Furthermore, all other factors, with the exception of gender, were statistically relevant in affecting tax compliance. Finally, the study recommended that a taxpayer's awareness of tax laws and proclamations is a significant factor in growing tax enforcement. Tax rules should spell out where and how a tax is to be charged, as well as how the amount is calculated. Related taxpayers should be charged in the same way. Taxpayers should be able to understand the rules and follow them accurately and cost-effectively. A straightforward tax system makes it easier for taxpayers to grasp the tax implications of their real and expected transactions, eliminates mistakes, and builds trust in the system
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Keywords
Tax compliance, Medium Taxpayer, Factors influencing tax compliance