Abstract: The issues of tax payers’ knowledge and tax compliance behavior have received great attention around the world. Tax payers’ knowledge indicates to obtain the degree of voluntary tax compliance. Therefore, understanding tax payers’ knowledge and compliance behavior is an important issue for any government and revenue collecting authority particularly in a self‐assessment environment. The objective of this study is to obtain a comprehensive overview of business income tax payers’ knowledge towards the tax law in Ethiopia in case of Tigray state. To achieve the research objective researcher was adopted a mixed methods approach both quantitative and qualitative techniques.
A total number of 398 sample sizes were administered and questionnaires have distributed to the respondents. Of the 398 copies of questionnaires distributed to respondents, only 375 were dully completed and returned and all were used in the analysis. The researcher has adopted the five-point Likert scale rating method for this study. The statistical package for social sciences (SPSS) version 20.1 was employ in the different analyses to run the results. Study result indicated that tax compliance behavior of tax payers’ influenced by tax payers’ tax knowledge in Tigray state. Finally researcher suggested that, policy makers, tax authority and government should do further study to know in which extent tax payers’ tax knowledge is influence noncompliance behavior in the study area.
Keywords: Taxpayers’ knowledge and compliance behavior of Tigray state.
Title: Taxpayers’ Knowledge and Tax Compliance Behavior in Ethiopia: A Study of Tigray State
Author: Redae Berhe Redae, Professor Shailinder Sekhon (Ph.D)
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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