Compliance and Non Compliance Behavior of Business Profit Taxpayers’ Towards the Tax System: A Case Study of Mekelle City, Ethiopia
Journal Title: Scholars Journal of Economics, Business and Management - Year 2014, Vol 1, Issue 10
Abstract
In developing countries taxation is a challenging topic and has attracted increasing attention in the last two decades. Many problems observed like poor administration, failing to collect sufficient tax revenues, tax structures where tax horizontal and vertical equity considerations are not integrated, lack of government and economic stability. In many developing countries it is observed that there is low capacity of tax administration to monitor compliance among taxpayers. The voluntary compliance behavior of the tax payers is determined by various factors and identifying these factors and treating them accordingly should be the central premises of any tax system in order to maintain voluntary compliance with taxation in Mekelle City, Ethiopia. Based on this fact, a survey data for this study were collected based on questioners from a sample of Mekelle city business income tax payers by distributing the total sample purposely to three sub cities namely Kedamay weyane ,Hawelti and Adi-haki using proportional sampling technique. The scope of the study was limited to individual business income tax payers of the three sub- cities. Data were collected from 180 respondents and analyzed using descriptive statistics such as mean and standard deviation. The study was summarized and presented in tabular form representing proportions and percentages are used in analyzing the data collected. Based on the response of the respondents, certain factors were found to be the determinants of taxpayers’ voluntary compliance. These are tax fairness and equity, organizational strength of the tax authority, awareness level of the taxpayers, socio-cultural factors, and attitude of taxpayers towards the government. Keywords: Tax revenues, voluntary compliance, business profit tax payers and tax administration system etc.
Authors and Affiliations
Dr. Suresh Vadde
Keywords
Related Articles
- EP ID EP384833
- DOI -
- Views 80
- Downloads 0
Social Reproduction as an Object in the Universe
An attempt was made to explain an objective nature of laws of social and economic development in terms of evolution: from limitless interactions of energies of the Universe to natural selection of the species and later o...
Organizational innovation in the cooperative societies of fish production: Case of fish production cooperative society "The Patole"
Abstract: This article exposes a theoretical-methodology focus on innovation and analysis of the El Patole Cooperative Society S.C. de R.L. de C.V. In which it is remark that innovation in the productive process is impor...
Bidirectional Causality Analysis for Education Expenditures Index, Financial Development Index and Economic Growth: Case of North Cyprus
Abstract: The main aim of this study is to reveal the causality relationship between education expenditures index with finance sector development index and economic growth in North Cyprus. After producing indexes, Vector...
The Impact of Economic Value Added (EVATM) on Stock Returns in Nigeria
Abstract:The purpose of this paper is to investigate the impact of economic value added (EVATM) on stock returns in Nigeria. This research has been performed using a sample of 60 companies quoted on the Nigeria Stock Exc...
HR practices in Social Media and associated aspects of Social Capital
Abstract: Social capital is the expected collective economic benefits derived from the preferential treatment and cooperation between individuals and groups. This concept is a sociological concept which includes social c...