Determinants of Tax Compliance in Case of North West Addis Ababa Small Tax Payers Branch Office

Abstract

The general objective of this study is to assess “Determinants of Tax Compliance Behavior in north west Addis Ababa the small tax Taxpayers branch office. This research had a total target population of 8000 taxpayers’. A sample of 380 were selected based on convenience sampling technique and from the distributed 380 questionnaire’s 350 were returned with feedback. For this study a structured questionnaire was designed. Primary data were sorted by using SPSS software version 26. The researcher also used correlation and multiple regressions for showing the relationship of independent variables to tax compliance. The study is a descriptive research type and quantitative research approach was used in data collection and analysis. The result reveled that complexity of tax system, probability of detection, penalty, tax rates, tax evasion, peer influence group and tax knowledge, gender& age and perception of the role of government are factor that significantly affect determinates tax compliance behavior. The researcher concludes that there is sufficient evidence to conclude complexity of tax system, probability of detection, tax rates, penalty, tax evasion, peer influence group, gender and age, perception of role of government and tax knowledge are factor that significantly affect tax compliance. The study recommends that awareness rising on personal compliance and educating about the benefit and importance of voluntary compliance to the entire citizen will help to minimize the undesirable attitudes of relatives, families and friends. Government need carefully, very wisely and sensitively to spend it’s expenditures in order to increase tax compliance. This maximizes heavy taxpayers trust on the government.