Abstract
Why people pay taxes is voluntarily is an important question for tax administration
worl... more Abstract Why people pay taxes is voluntarily is an important question for tax administration worldwide. Some believe it is because taxpayers are deterred from tax evasion out of fear of being caught or penalized. Others, in contrast, suggest that factors such as the intrinsic motivation one has to pay their tax. Nevertheless, improved tax compliance boosts the revenue available for supporting public service without increasing the current tax burden on compliant taxpayers. There appears to be a trend in a tax compliance policy with initiatives by a number of tax authorities to move towards a more taxpayers focused approach. A number of tax authorities have been moving towards a sophisticated approach to tax compliance. Traditionally they seem to have been an assumption that tax compliance can be answered with the help of legal enforcement and penalties. The objective of this study was to identify the Determinant of Taxpayer’s Compliance towards Taxation in Assosa Zone. To achieve the research objective describing the situation of the impact of taxpayers’ attitude towards taxation through qualitative and quantitative data is achieved by employing descriptive research method. To derive in to this objective the researcher was explored both primary and secondary data. Necessary data were collected using standard questionnaire and analyzed. According to the response rate of the respondent, certain factors were found to be the determinant of taxpayer’s compliance towards taxation. These are equity and fairness of tax system, attitude towards the government, social factors, culture and social norms, organization strength of the authorities, awareness of taxpayer education. Other factors such as taxpayer’s attitude and honesty/ loyalty of taxpayers are the result of lack of awareness. The result shows that taxpayer’ education was found to be the main explanatory factor in determining tax compliance behavior. Finally, based on the findings possible recommendations were given. These include, maintaining tax fairness and equity, building capacity of tax authority, conducting extensive awareness creation programs, and providing social services to the general public.
Abstract
Why people pay taxes is voluntarily is an important question for tax administration
worl... more Abstract Why people pay taxes is voluntarily is an important question for tax administration worldwide. Some believe it is because taxpayers are deterred from tax evasion out of fear of being caught or penalized. Others, in contrast, suggest that factors such as the intrinsic motivation one has to pay their tax. Nevertheless, improved tax compliance boosts the revenue available for supporting public service without increasing the current tax burden on compliant taxpayers. There appears to be a trend in a tax compliance policy with initiatives by a number of tax authorities to move towards a more taxpayers focused approach. A number of tax authorities have been moving towards a sophisticated approach to tax compliance. Traditionally they seem to have been an assumption that tax compliance can be answered with the help of legal enforcement and penalties. The objective of this study was to identify the Determinant of Taxpayer’s Compliance towards Taxation in Assosa Zone. To achieve the research objective describing the situation of the impact of taxpayers’ attitude towards taxation through qualitative and quantitative data is achieved by employing descriptive research method. To derive in to this objective the researcher was explored both primary and secondary data. Necessary data were collected using standard questionnaire and analyzed. According to the response rate of the respondent, certain factors were found to be the determinant of taxpayer’s compliance towards taxation. These are equity and fairness of tax system, attitude towards the government, social factors, culture and social norms, organization strength of the authorities, awareness of taxpayer education. Other factors such as taxpayer’s attitude and honesty/ loyalty of taxpayers are the result of lack of awareness. The result shows that taxpayer’ education was found to be the main explanatory factor in determining tax compliance behavior. Finally, based on the findings possible recommendations were given. These include, maintaining tax fairness and equity, building capacity of tax authority, conducting extensive awareness creation programs, and providing social services to the general public.
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Papers by Gezahegne Mekassha
Why people pay taxes is voluntarily is an important question for tax administration
worldwide. Some believe it is because taxpayers are deterred from tax evasion out of fear
of being caught or penalized. Others, in contrast, suggest that factors such as the
intrinsic motivation one has to pay their tax. Nevertheless, improved tax compliance
boosts the revenue available for supporting public service without increasing the current
tax burden on compliant taxpayers. There appears to be a trend in a tax compliance
policy with initiatives by a number of tax authorities to move towards a more taxpayers
focused approach. A number of tax authorities have been moving towards a sophisticated
approach to tax compliance. Traditionally they seem to have been an assumption that tax
compliance can be answered with the help of legal enforcement and penalties.
The objective of this study was to identify the Determinant of Taxpayer’s Compliance
towards Taxation in Assosa Zone. To achieve the research objective describing the
situation of the impact of taxpayers’ attitude towards taxation through qualitative and
quantitative data is achieved by employing descriptive research method. To derive in to
this objective the researcher was explored both primary and secondary data. Necessary
data were collected using standard questionnaire and analyzed. According to the
response rate of the respondent, certain factors were found to be the determinant of
taxpayer’s compliance towards taxation. These are equity and fairness of tax system,
attitude towards the government, social factors, culture and social norms, organization
strength of the authorities, awareness of taxpayer education. Other factors such as
taxpayer’s attitude and honesty/ loyalty of taxpayers are the result of lack of awareness.
The result shows that taxpayer’ education was found to be the main explanatory factor in
determining tax compliance behavior. Finally, based on the findings possible
recommendations were given. These include, maintaining tax fairness and equity,
building capacity of tax authority, conducting extensive awareness creation programs,
and providing social services to the general public.
Why people pay taxes is voluntarily is an important question for tax administration
worldwide. Some believe it is because taxpayers are deterred from tax evasion out of fear
of being caught or penalized. Others, in contrast, suggest that factors such as the
intrinsic motivation one has to pay their tax. Nevertheless, improved tax compliance
boosts the revenue available for supporting public service without increasing the current
tax burden on compliant taxpayers. There appears to be a trend in a tax compliance
policy with initiatives by a number of tax authorities to move towards a more taxpayers
focused approach. A number of tax authorities have been moving towards a sophisticated
approach to tax compliance. Traditionally they seem to have been an assumption that tax
compliance can be answered with the help of legal enforcement and penalties.
The objective of this study was to identify the Determinant of Taxpayer’s Compliance
towards Taxation in Assosa Zone. To achieve the research objective describing the
situation of the impact of taxpayers’ attitude towards taxation through qualitative and
quantitative data is achieved by employing descriptive research method. To derive in to
this objective the researcher was explored both primary and secondary data. Necessary
data were collected using standard questionnaire and analyzed. According to the
response rate of the respondent, certain factors were found to be the determinant of
taxpayer’s compliance towards taxation. These are equity and fairness of tax system,
attitude towards the government, social factors, culture and social norms, organization
strength of the authorities, awareness of taxpayer education. Other factors such as
taxpayer’s attitude and honesty/ loyalty of taxpayers are the result of lack of awareness.
The result shows that taxpayer’ education was found to be the main explanatory factor in
determining tax compliance behavior. Finally, based on the findings possible
recommendations were given. These include, maintaining tax fairness and equity,
building capacity of tax authority, conducting extensive awareness creation programs,
and providing social services to the general public.