determinants of tax payers voluntary compliance with taxation in east gojjam

Beza Muche Teka

Abstract


Abstract

This paper attempts to investigate the determinants of tax payers’ voluntary compliance with taxation in East Gojjam. The objective of this study was to identify the determinants of tax payers’ voluntary compliance with taxation in the study area. Based on this fact the necessary data were collected using standard questionnaire administered randomly from the tax payers. A total of 384 pieces of questionnaire were given out to the target respondents. However those questionnaires that are not fill in properly and completely have been taken out. Hence, the actual sample used for the study is 250 respondents. In addition primary data using structured interview with the employees of the revenue office and secondary data from the reports and manuals of the zone revenue office was collected. The collected data was analyzed using descriptive statistics such as mean, frequency and standard deviation. In addition, Pearson correlation and Chi-Square was used to test the stated hypothesis. The Chi-Square test result revealed that there is no difference in their tax compliance behavior between males and females, Christians and Muslims, married and unmarried tax payers, as well as between category A, B&C tax payers. The Pearson correlation coefficient result show that among the different variables tested only perception of fairness and attitude towards taxation have positive and significant correlation with tax compliance. The results of this study can inform policymakers in what ways the determinants can affect compliance.

KEYWORDS: Tax payer, fairness, tax education, voluntary tax compliance


References


REFERENCES

Ajzen, I., and Fishbein, M. (1980). Understanding Attitudes and Predicting Social Behavior.

Englewood Cliffs, New Jersey: Prentice Hall

Allingham, M.G. and Sandmo, A.(1972). Income Tax Evasion: A Theoretical Analysis. Journal

of Public Economics 1.

Alm, J. (1991). A perspective on the experimental analysis of taxpayer reporting. The

Accounting Review, 66(3), 577-93.

Alm, J., B. Jackson, and M. McKee (1992). Estimating the Determinants of Tax Compliance

with Experimental Data.

Andreoni, J. and et al (1998). Tax Compliance. Journal of Economic

Asamnew G. (2011). Tax assessment and collection problems of Category “A” tax payers:A case

of Addis Ababa Yeka Sub City.

Barrand, P., Harrison, G., and Ross, S. (2004). Integrating tax and social security

Contribution collection within a unified revenue administration: The experience of central and eastern European countries.

Bhatia, H.L.(1976). Public Finance, 19th edition. New Delhi, India: Vikas Publishing House Pvt

Ltd.

Butler, C. (1993). Self assessment: the way forward, Tax Nasional, June, 2-3.

Chow, C.Y. (2004). Gearing up for the self assessment tax regime for individuals. Tax National,

nd quarter, 20-23.

Clotfelter, C. T. (1983). Tax evasion and tax rates: An analysis of individual returns. The Review

of Economics and Statistics, LXV(3), 363-73.

Ethiopian Chamber of Commerce (ECC) and Ethiopian Business Development Services

Network (EBDSN) (2005).Taxation in Ethiopia. Direct and Indirect Taxes - Categories of Tax

Payers, Declaration of Income and Assessment of Taxes, Addis Ababa.

Federal Inland Revenue Authority (2000). Components of Tax Administration. Tax, Vol.1, no 3,

FIRA, Addis Ababa.

Fjeldstad, O. (2004). To Pay or Not to Pay? Citizens’ Views on taxation in local authorities in

Tanzania. Working paper, Bergen, Norway: Chr.Michelsen Institute.

Hasseldine, J., and Li, Z. (1999), more tax evasion research required in new millennium. Crime,

Law and Social Change, 31 (1), 91-104.

Jackson. B.R., and Milliron, V.C. (1986). Tax compliance research: Findings, problems, and

prospects. Journal of Accounting Literature, 5.

Kirchler, E. (2007). The Economic Psychology of Tax Behavior. Cambridge: Cambridge

University Press.

Kirchler, E., Hoelzl, E., and Wahl, I. (2008). Enforced versus voluntary compliance: The

“slippery slope” framework. Journal of Economic Psychology, 29, 210-55.

Lemessa, B. (2005). Federal Income Tax Administration in Ethiopia: The Case of Employment

and Business Income Taxes, Unpublished Msc. Thesis, AAU.

Lemessa T. (2007). Determinants of taxpayers’ voluntary compliance with taxation the case

study of dire dawa city-Ethiopia.

Ling, Normala and Meera (2005). Towards electronic tax filing: Technology readiness and

responses of Malaysian tax practitioners. Tax National, First Quarter, 16-23.

Loo, E.C. (2006). The influence of the introduction on self assessment on compliance behavior of

individual taxpayers in Malaysia. PhD thesis. University of Sydney.’2

McBarnet, D. (2001). When compliance is not the solution but the problem: From changes in law

to changes to attitude. Canberra: Australian National University, Centre for Tax System

Integrity.

Mohani, A. (2001). Personal income tax non-compliance in Malaysia. PhD thesis. Victoria

University: Melbourne, Australia.

Mohani, A., and Sheehan, P. (2004). Estimating the extent of income tax non-compliance in

Malaysia and Australia using the gap approach (part II). Tax Nasional, 1st quarter.

Mohd Rizal Palil (2011). Determinants of Tax Compliance in Asia: A case of Malaysia

Richardson, G. (2008). The relationship between culture and tax evasion across countries:

Additional evidence and extensions. Journal of International Accounting, Auditing and Taxation, 17(2), 67-78.

Singh, V. (2003). Malaysian Tax Administration. 6th ed. Kuala Lumpur: Longman.

Slemrod, J., Blumenthal, M., and Christian, C. (2001). Taxpayer response to an increased

probability of audit: evidence from a control experiment in Minnesota, Journal of

PublicEconomics, 79.

Smith, A. (1776). The Wealth of Nation. London: Penguin Books.

Somasundram, N.R. (2003). Tax evasion and tax investigation - a study on tax compliance

management. Chartered Secretary Malaysia, July, 20-24.

Song, Y. and Yarbrough, T. E. (1978). Tax Ethics and Taxpayer Attitudes: A survey. Public

Administration Review, Vol.38, No.5, pp.442-452. American Society for Public Administration.

Tanzi, V. (1980). Inflationary expectations, economic activity, taxes, and interest rates.

The American Economic Review, 70 (1).

Wenzel, M. (2003). Tax compliance and the psychology of justice: Mapping the field. In

Braithwaite, V. (ed.), Taxing Democracy. Understanding Tax Avoidance and Tax Evasion.

Wubshet A. (2011). Taxpayers’ Perception towards Fairness: Personal Business Profit Taxpayers

in Addis Ababa-Ethiopia.

Young, J. (1994). Factors Associated with Noncompliance: Evidence from the Michigan Tax

Amnesty Program. Journal of the American Taxation Association, 16 (2), pp. 82-105.


پاراگلایدر Full Text: PDF

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

ISSN : 2251-1555