THE EFFECT OF ATTITUDE TOWARDS E-TAX SYSTEM ON TAX COMPLIANCE: USING TECHNOLOGY ACCEPETANCE MODEL IN ETHIOPIAN LARGE TAX PAYERS

Abstract

The main purpose of this study is to examine the effect of attitude towards e-tax system on tax compliance by using Technology Acceptance Model (TAM) in Ethiopian large tax payer organizations. This research uses lottery method of simple random sampling technique to determine the samples. Respondents of this study were large taxpayers who had been registered in large taxpayers’ branch office. There are 215 respondents out of 242 exemplars of distributed questionnaires who are willing to participate. Data were analyzed using Partial List Square Structural Equation Modeling (PLS-SEM) modeling which consists of two stages: the measurement model and the structural model. The research findings revealed that, attitude towards using e-tax system has a significant positive effect on the E-tax system adoption and Tax Compliance. The perceived ease of use has significant and positive effect on the Perceived Usefulness of e-tax system and attitudes towards using e-tax system. Perceived Usefulness of e-tax system has a significant positive effect on Attitude towards using e-tax system and E-tax system adoption has a significant positive effect on Tax Compliance. The overall implication of the construct collectively explained 40.50% of the variance in tax compliance and was predicted from the variables Attitude towards using e-tax, E-tax system adoption, Perceived ease of use & Perceived Usefulness