Degefa, Duressa (PHD)Mahlet, G/Egziabher2020-07-232023-11-042020-07-232023-11-042020-05http://etd.aau.edu.et/handle/123456789/21962A Thesis Submitted to the Department of Accounting and Finance in Partial Fulfillment of the Requirements for the Master of Science (MSc) in Accounting and FinanceThe aim of this thesis was to test the relationship between tax compliance and its determinant factors in the Ethiopian tax payers case. This study used an explanatory research design in which the cause and effect relationship between tax compliance and its determinant factors is tested. In doing so a correctional data was collected from a sample of 269 tax payers through survey. The samples were drawn from a total population of 820 federal large tax payers in Ethiopia using simple random and systematic sampling technique. The data was analyzed using quantitative approach, descriptive study (mean and standard deviation) and inferential statistics (regression analysis). The descriptive analysis result showed that tax payers have more than average level of tax compliance behavior in the seven-point Likert scale. Scoring more than average value, they also think that the tax system is equitable and fair, there is possibility of detection and penalty, have higher motivational posture, believe that the government spends the tax the tax appropriately and the behavior of other tax payer’s influence their tax compliance behavior. However, the knowledge and education level they have about tax related issues is less than average in the seven- point Likert scale. The regression analysis showed that tax compliance behavior has significant as well as positive relationship of with perception of equity and fairness towards the tax system, the influence of peer groups in the surrounding environment, the possibility of detection and penalty, motivational posture and perception towards government spending. The relationship between tax compliance behavior and knowledge and education resulted to be significant but negative. Due to the fact that the determinant factors in this study have significant relationship with tax compliance, it is recommended that tax authority should set systems that makes the tax system equitable and fair , positive attitude and moral obligation to pay tax, detect non-compliance behavior and reinforce complying behavior and proper spending of tax avoiding misuseenMotivational postureTax AvoidanceTax complianceTax Evasion. Model- Fit, Multi-collinearity.Thesis