Vol 5 No 8 (2019): International Journal For Research In Business, Management And Accounting (ISSN: 2455-6114)

The Determinants of tax compliance: A case study on nifas silk lafto subcity category A tax payers

Ezana Gelawu
Published August 29, 2019
  • Tax compliance,
  • category ‘A’ tax payers,
  • compliance cost,
  • compliance costfines and penalties,
  • fairness/equity,
  • fines and penalties,
  • tax knowledge/awareness level and liquidity/level of working capital
  • ...More
How to Cite
Gelawu, E. (2019). The Determinants of tax compliance. International Journal For Research In Business, Management And Accounting (ISSN: 2455-6114), 5(8), 01-76. Retrieved from https://gnpublication.org/index.php/bma/article/view/1048


Taxation is one of the most important elements in managing national income. However, as most of the developing countries, Ethiopia is highly dependent on external financial resources to finance its development activities. The main objective of this paper is to identify the major factors that influence the tax compliance of category ‘A’ taxpayers in nifas silk lafto sub city, Addis Ababa, Ethiopia. Based on this objective, the data were collected by using a questionnaire which had been distributed to 120 respondentssellectedfrom the tax payers and collected. The collected data were summarized and presented by using descriptive statistical tools such as tables and percentages. After some diagnostic tests were conducted; binary logistic regression modelwas used in analyzing the data collected. The finding of thisstudy is that, the factors such as fairness/equity, fines &penalties,compliance cost, liquidity, thestrength of the tax authority, knowledge/awareness level of tax payers, socio-cultural factors and genderoftaxpayerswere found to be the determinant factors that affect taxpayers’ compliance. From these factors; four of them (fairness/equity, fines & penalties, compliance cost, liquidity) have the most significant effect on taxpayers’ compliance.  Finally,based on these findings some possible recommendations were given. These includes; maintaining taxfairness and equity, building capacity of the tax authority,create a convenience tax payment period and location, and providing social services to the general public.


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