Assessment of Category “C” Business Tax Payers’ Perception on Tax Evasion: The Case of Debre Berhan City Administration

Abstract

Tax evasion is a general term made by individuals, firms and other entities to evade the payment of tax by breaking the law. The study is focused on assessment of category “C” business tax payer’s perception on tax evasion a case of Debre Birhan City Administration. The study is aimed at identifying whether the tax payers are aware about the tax payment as an obligation and with tax evasion and what is the opinion and perception towards the preventing mechanism of tax evasion and knowledge on a tax evasion transaction. For this study the researchers’ collects primary data through interview and questionnaire on purposive basis for tax payers of 50 respondents which are interested to provide relevant information. The collected data were analyzed by using descriptive data analysis method and make the analysis supported by tables and percentage. The major problem on perception of tax evasion found in this study is that tax payers lake awareness towards the tax obligation and knowledge of transaction that constitute tax evasion.