A study on Department factors of Tax Compliance with reference to select Business Income Earners in Tigray Region Ethiopia

Abstract

quotFor many decades, the tax contribution to GDP in Ethiopia was very less. On the other newlinehand, the Ethiopian Government has been strongly believed and committed to poverty newlinealleviation and assures sustainable development and it is impossible to achieve such a newlinegoal without generating sufficient revenue which can cover the government expenditure. newlineTo narrow the gap between the revenue and expenditure of the government, an newlineimprovement on tax administration system, awareness creation methods, filing system, newlineassessment and collection process has playing an important role in bridging the tax newlinecompliance gap. Therefore, the researcher tried to fill the tax gap or tax compliance gap newlinewith the objective of this study that identifying the determinant factors affecting tax newlinecompliance among business income earners in Tigray Region, Ethiopia. This research newlinespecially aimed to examine the determinants of tax compliance such as demographic newlinefactors, tax fairness, attitude of taxpayers, tax administration and tax knowledge. In newlineorder to attain the objective of the study as well as to test the hypotheses and answer newlineresearch questions, the study adopts a mixed methods research approach. Specially, newlinesurvey method was used and data has been collected by distributing questionnaires from newlinethe sample of category C business income taxpayers of Tigray Region, Ethiopia. The newlinestudy employed multiple regression analysis to examine the relationship between tax newlinecompliance and its determinant factors. Results of the analysis indicated that gender and newlineage have significant relationship with tax compliance. In addition, tax administration, tax newlineknowledge and attitude of taxpayers have also significant effect on tax compliance. newlinequot newline newline