Volume : 6, Issue : 9, September - 2017

TAX COMPLIANCE AND ITS ADMINISTRATION

P. Veni, Eshetu Yadecha Bedada

Abstract :

<p>&nbsp;<i style="text-align: justify;"><span style="font-size:12.0pt;&#10;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;mso-bidi-font-weight:&#10;bold">The objective of this study is to assess factors affecting tax compliance behavior and the tax administration practice</span></i><b style="text-align: justify;"><i><span style="font-size:12.0pt;&#10;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;">. </span></i></b><i style="text-align: justify;"><span style="font-size:12.0pt;line-height:&#10;150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;mso-fareast-font-family:&quot;Times New Roman&quot;;&#10;mso-bidi-font-weight:bold">In more specific case it tries to identify the determinant factors that affect tax payer&rsquo;s tax compliance behavior. A multistage sampling of stratified sampling and simple random sampling was applied to select the sample.</span></i></p> <p class="MsoNormal" style="margin-left:.25in;text-align:justify;line-height:&#10;150%"><i><span style="font-size:12.0pt;&#10;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;">Descriptive and inferential data analysis techniques are applied to analyze data gathered through structured questionnaires. The statistical data analysis applied includes: percentages, frequencies, correlation, and regression.<o:p></o:p></span></i></p> <p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-bottom:0in;&#10;margin-left:.25in;margin-bottom:.0001pt;text-align:justify;line-height:150%;&#10;mso-layout-grid-align:none;text-autospace:none"><i><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;">The findings of the</span></i><i><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;&#10;mso-fareast-font-family:Calii;mso-fareast-theme-font:minor-latin"> study revealed that perception on tax fairness, attitude towards tax, knowledge about taxation and the tax administration system are major components in compliance to tax policy by tax payers whereas </span></i><i><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;">the tax payers&rsquo; </span></i><i><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;;&#10;mso-fareast-font-family:Calii;mso-fareast-theme-font:minor-latin">attitude towards tax</span></i><i><span style="font-size:12.0pt;line-height:150%;font-family:&quot;Times New Roman&quot;,&quot;serif&quot;"> and tax administration systems are significantly affected tax payers&rsquo; compliance to tax. Accordingly, sustainable awareness creation and attitude changing programs should be maintained. And also the tax system has to be fair so that it has to be reasonable and consider the benefit that is provided by the government.<o:p></o:p></span></i></p>