DETERMINANTS OF TAX EVASION AT GULLELE SUB CITY SMALL TAX PAYERS CATEGORY “A” TAXPAYERS

Abstract

The aim of this thesis was to depict the determinants of tax evasion at Gullele Sub City Small Tax Payers Category “A” Taxpayers level context. To attain the objectives of this study explanatory research design was used. By using non probability sampling techniques, 215 participants were involved in this research. Data was collected through questionnaire from a sample of 226 Gullele Sub City Small Tax Payers Category “A” Taxpayers district. The data collected from the questionnaire were analyzed using statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, tax evasion (moral obligation, subjective norms, tax knowledge, tax fairness, and tax rate) have positive and significant relationship with tax evasion. Additionally, the above-mentioned tax evasion significantly contributes 68.2% to tax evasion in Gullele Sub City Small Tax Payers Category “A” Taxpayers. Based on the findings of the study, the study concludes that the contribution of tax evasion practice was found to be significant effect. Therefore, it is possible to conclude that Gullele Sub City Small Tax Payers Category “A” Taxpayers is collapsing the tax evasion in to decreasing the existing tax evasion perception towards its actual implementation and to eliminate their tax evasion accordingly. The research also suggested that efforts to be made with regard to revising the perceived moral obligation, subjective norms, tax knowledge, tax fairness, and tax rate engage in national campaign to raise awareness and increase education about the benefits of voluntary compliance, increase the percentage of audit coverage of taxpayers, penalize defaulters and “name and shame” them, simplify tax laws, close tax law loopholes, and, train tax inspectors.