Review Article

Agriculture

FACTORS THAT INFLUENCING TAXPAYERS’ COMPLIANCE BEHAVIOR CATEGORY “C” TAXPAYERS IN EASTERN ZONE OF TIGRAY, ETHIOPIA

The study was focused on the investigation of the factors that influencing taxpayer’s compliance behavior in Eastern Zone of Tigray in Category “C” taxpayers. In order to gain an in depth understanding of the phenomenon, the study expands the basic tax payers’ compliance variable to incorporate tax service quality, tax system/structure, attitude towards tax evasion, type of occupation, income level and financial condition. In order to achieve the desired objectives of the study, primary data were collected through self-administered questionnaires from 380 sampled respondents, which is a cross sectional type. The collected data were treated and analyzed statistically using ordered logistic regressions analysis with the help of STATA version 11. Moreover, descriptive statistics was also used for both questionnaire and interview via content analysis. The findings of the study revealed that the descriptive statistics on the surveyed sample perceived the tax service quality and tax system structure were ineffective and business profit taxpayers shown unfavorable attitude towards tax evasion based up on the interview as well. The findings also indicated that, based on ordered logistic regression, all variables found to have a positive effect on tax payers’ compliance behavior. Particularly tax service quality, occupation and financial condition significantly affect the tax payers ‘compliance behavior at 95 % confidence interval.