FACTORS AFFECTING TAXPAYERS VOLUNTARY COMPLIANCE ATTITUDE WITH TAX SYSTEM; EVIDANCE FROMGUBRE TOWN

Abstract

The voluntary compliance behavior of the taxpayers is determined by various factors and identifying these factors and treating them accordingly should be the central premises of any tax system in order to maintain voluntary compliance at satisfactory levels. Thus this study investigated factor affecting tax payer voluntary compliance in case of Gubrea town. The target population of the study are category “C” tax payers and the sampling size is 67 from the total taxpayer population of 227.Based on this fact, the data uses from primary data. According, to this paper investigated the factors such as knowledge of the tax payers, awareness level of tax payers, social factors, and tax payers’ attitude towards the government that is extracted from literature. In order to analyze and present the results of this study mainly by use of inferential statistics such as regression. The results showed that knowledge of the tax payers, social factors, and tax payer attitude were factors that positively significantly affect tax compliance behavior. Finally, based on the findings possible recommendations were given. These include, to improve tax knowledge of tax payers through tax education program, so that voluntary compliance behavior can be developed, and the city government has to provide social services to the public and it has to inform the taxpayers that these services are provided by their money.