BUSINESS TAX PAYERS’ PERCEPTION TOWARDS FAIRNESS OF THE TAXATION SYSTEM: IN THE CASE OF ADDIS ABEBA CITY, IN THE CASE OF AKAKI KALITY SUB CITY CATEGORY “B” TAX PAYERS

Abstract

This study investigated the fairness perceptions of Akaki Kality sub city category “B” business tax payers towards the taxation system. The investigation of tax payers’ perception towards fairness perception is conducted by investigating the themes of tax fairness. Personal fairness, exchange fairness, horizontal fairness, vertical fairness, administrative fairness, tax complexity and tax efficiency.The study adopted mixed method research approach to achieve general and specific objectives of the research. The data is planned to collect from 198 business tax payers but 38 questioners were uncollected because of forget to return, leave the questioners blank and other related reasons. Statistical descriptive method is used for analyzing the finding. SPSS is used for computing mean, std. and variance of the perceptions.The result of this study shows that akaki kality sub city category “B” tax payers perceived fairness of the taxation system neutral. This means fairness of the taxation system is not common or not similar in all themes of tax fairness. The fairness is fluctuated in the system. The finding shows that there is a problem of implementing rules and regulations of the taxation system.Finally this study suggested some measures which could bring better taxation system in the authority; Giving continues training and awareness creation activities, There must be sufficient provisions of social services by the government, Building good governance in corporate level and in the authority, Design tax reform to strengthen governance, Conduct continues tax payer’s perception surveys, Pay attention to micro, smaller and middle –size enterprises.