FACTORS THAT AFFECT EFFECTIVENESS OF TAX COLLECTION FOR CATEGORY “C” TAX PAYERS (IN CASE OF WOLKITE TOWN)

Abstract

The focus of paper was to assess factor that affect effectiveness of tax collection for category C tax payers in Wolkite town. The objective of the study was to identify factor that affect effectiveness of tax collection such factor like tax compliance tax awareness income of individual land tax evasion &avoidance. A study is important to identify significant variables affecting effectiveness of tax collection. The research approach adopted in this thesis included primary data set that consists which include questionnaire at sample used Judgment also sampling technique was random sampling. Both descriptive statistics and SPSS 20TH Version tools were employed to analyse and present the obtained data. The findings from this research provide evidence that, tax awareness regression result shows negative insignificant, tax compliance positive and significant, income of individual has the positive sign which is significant, and tax evasion &avoidance have positive insignificant impact on effectiveness of tax collection. The main conclusions drawn from this study are, income tax compliance and income of individual have significant impact on effectiveness of tax collection.