Universal Journal of Accounting and Finance Vol. 6(3), pp. 92 - 107
DOI: 10.13189/ujaf.2018.060302
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Factors Influencing Taxpayers' Voluntary Compliance Attitude with Tax System: Evidence from Gedeo Zone of Southern Ethiopia


Kanbiro Orkaido Deyganto *
Accounting and Finance Department, Dilla University, Dilla, Ethiopia

ABSTRACT

Taxpayers' voluntary compliance attitude with tax system is influenced by demographic, individual, social, institutional and economic factors. Thus, the objective of this study was to examine the factors influencing tax voluntary compliance attitude with tax system the case of Gedeo Zone. To this end, the author used mixed research approach. The target populations of the study were tax authority and taxpayers in Zone. A sample of 323 taxpayers was randomly taken from the 1,678 taxpayers in the Zone but tax officers were judgmentally selected by the researcher in order to collect sufficient and relevant information required to prepare the report of this study. Both primary and secondary data were collected. Primary data were collected through structured questionnaire and interview with officers and taxpayers representatives. The secondary data were also collected by reviewing of related published and unpublished materials. Binary logistic regression model was employed to analysis the data through Stata software application version 12.0 and SPSS version 23.0 were used to present the results of this study. Then, the result of this study showed that out of fourteen explanatory variables incorporated in the model, seven variables such as gender, age, lack of tax knowledge, simplicity of tax system, awareness on penalty, probability of being audit, and perception on tax rate were found to be key factors influencing taxpayers' voluntary compliance attitude with tax system in the study area. Whereas variables such as education level, tax authority efficiency, peer influence, occupation, income level of taxpayers, perception on government speeding, and perception on fairness and equity have no significant influence on tax voluntary compliance attitude. Finally, the findings of the study may inform policy makers about the factors influencing voluntary compliance attitude towards tax system in the Zone and supports to formulate constructive policy in order to achieve the goal of raising required tax revenue to promote the economic development of the country.

KEYWORDS
Tax System, Taxpayers' Voluntary Compliance Attitude, Binary Logit Model, Gedeo Zone

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Kanbiro Orkaido Deyganto , "Factors Influencing Taxpayers' Voluntary Compliance Attitude with Tax System: Evidence from Gedeo Zone of Southern Ethiopia," Universal Journal of Accounting and Finance, Vol. 6, No. 3, pp. 92 - 107, 2018. DOI: 10.13189/ujaf.2018.060302.

(b). APA Format:
Kanbiro Orkaido Deyganto (2018). Factors Influencing Taxpayers' Voluntary Compliance Attitude with Tax System: Evidence from Gedeo Zone of Southern Ethiopia. Universal Journal of Accounting and Finance, 6(3), 92 - 107. DOI: 10.13189/ujaf.2018.060302.