The Challenges Of E- Filing and Its Role in Improving Tax Compliance: The Case of Ministry of Revenue Large Tax Payers Office

Abstract

The main objective of this research was to examine The Challenges Of E-Tax Filing and Its Role in Improving Tax Compliance. The research was employed descriptive and explanatory research design. The source of data was primary and secondary data. The primary data was collected by using a questionnaire with closed ended formats and structured interview. Reliability test was conducted to check the consistency of the questionnaire. The target population of the study includes 631 tax payers in large taxpayer’s office Addis Ababa branch office. A sample size of 243 respondents was selected from registered large taxpayer’s office. Hence the result of the study revealed that Although the majority of the respondents of large taxpayer’s office towards E-tax filing have better knowledge and perception, taxpayer’s knowledge to encode data while use E-filing and their perception towards the use of E-filing does save cost and time is weak. From the inferential statistics finding result both perception and knowledge towards E-filing have positive and significant effect on tax compliance and proved by using logistic regression analysis. It is, therefore, recommended that tax center should focus on giving training to tax payers on how to encode data while use E-filing, avoid twice tax filling using both E-filling and paper, solve the problem of interruption of power and enhance internet connectivity, increase the quality of the system and also since 80.0 % of the variation of tax compliance explained by knowledge and perception of tax payers, the tax center better to give more attention on knowledge and perception of tax payers.