Determinants of Tax Compliance Behavior Among Taxpayers: The Case of Large Taxpayers’ Branch Office, Ethiopian Ministry of Revenues
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Date
2020-05
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A.A.U
Abstract
The main sources of government revenues are taxes levied on the incomes and wealth
accumulation of individuals and corporations. Government reports showed that revenues
generated from taxes and related incomes didn’t satisfy the current and capital expenditures of
Ethiopia. As a result tax compliance is an area of concern for the central government and all
regional tax authorities in the country. Regardless of time and place, the main issue faced by
the tax authorities is that it has never been easy to persuade all taxpayers to comply with
the rules and regulations of a tax system. Hence, the objective of this study is to assess
the main factors affecting tax compliance behavior among large taxpayers. What factors
motivate them to comply or what factors discourage them not to comply with the tax reporting
requirements. The research used primary data. The population of the study was 774 large
taxpayers registered in the large taxpayers’ branch office. A sample size of 264 taxpayers
was taken from the total population and descriptive and inferential methods were used for data
analysis. Tables, graphs and summaries are used to present results of the analysis. The
result indicated that fairness of tax system, complexity of tax system, probability of detection;
income level, penalty rate, peer influence, tax knowledge, gender and age affect tax compliance
behavior. Establishing fair and simple tax system supported by tax education and tax
awareness in the society would help to improve the tax compliance behavior of tax payers. The
study will allow policy makers to implement appropriate strategy that improves the tax
compliance level. Moreover, it may also serve as a basis for those who are interested to
conduct further study on related topics.
Description
A thesis submitted to Addis Ababa University College of Business and
Economics Department of Accounting and Finance in Partial fulfillment of
the requirements for the degree of Masters of Science in Accounting and
Finance
Keywords
Determinants of tax compliance, large taxpayers, Tax compliance