Taxpayers’ moral and compliance behavior in Ethiopia: A study of Tigray state

Taxpayers’ moral and compliance behavior in Ethiopia: A study of Tigray state

Tax payers’ moral is an important and integral attitude and determinant of taxpayer compliance and other forms of behavior. Taxpayers’ moral and tax compliance behavior is growing international concerns for tax authorities and public policy makers. Every government to generate enough revenue more likely it will put in place developmental plans for the enhancement of the living standard of the civilizations. To achieve these goals, a high, tax payers’ moral is required to achieve a high degree of tax compliance. This work aims to study tax payers’ moral and tax compliance behavior in Ethiopia, the case of Tigray state. The general objective of this study is to examine business income tax payers’ moral and the tax payers’ compliance behavior. Survey was used with questionnaire as the major tool of data collection covering business income tax payers’ category of A, B, and C. Sample size 398 respondents were drawn using stratified random sampling techniques. Of the total respondents, only 387 were dully completed and returned and all were used in the analysis. Simple Regression analysis was used to interpret and analyze the data. The result shows that there is a significant correlation between tax payers’ moral and tax payers’ compliance behavior. The study recommended that: In the study area, the Ethiopian Revenue and Custom Authority should set awareness creation sensations to increase the taxpayers’ ability to understand tax laws, rates of tax, filing, and paying dates, taxpayers’ should also know what is needed by tax officials in case of tax audit and inquiries and the tax authority should build absolutely confident about the legitimacy of the claims in their income tax return