determinants of tax payers voluntary compliance with taxation in east gojjam
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
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