THE EFFECTS OF ELECTRONIC FILING SYSTEM ON TAX PAYERS COMPLIANCE: IN THE CASE OF MINISTRY OF REVENUE

Abstract

The main objective of this study was to assess the effects of electronic tax filing system on tax payer’s compliances. The study used primary and secondary data. From the population of 795 large tax payers a sample of 266 was selected. Non-probability sampling technique was employed in this study to select the appropriate sample. The primary data were collected by using questionnaire prepared with close ended and open ended questions; and reliability test was conducted to check the consistency of the questionnaire. Logistic regression method was to analysis the collected data. The descriptive findings revealed that majority of large taxpayers do not have enough awareness on e-tax filing and tax compliance. The inferential statistics results indicate that perception and knowledge towards e-filing have positive and significant effect on tax compliance. The study recommended that consistent training is required to fill the gap of knowledge and perception towards e-filing and tax laws, and it requires collaborating with Ethio-telecom to improve internet connection.