A Comparative Study of Compliant and Non- Compliant Individual Taxpayers in Ethiopia evidence from Amhara region

Abstract

The tax compliance literature indicates that many factors, including, economic, social, psychological and demographic, impact upon the compliance behaviour of taxpayers. This research study investigated the relationship if any, that exists between major tax compliance variables and the attitudes and behaviour of both selected individual taxpayers^’ and tax evaders^’ towards tax evasion in Ethiopia, Amhara region. The study employed a mixed method approach drawing data from both a survey instrument and taxpayer interviews. The findings revealed that tax morals, tax fairness and to a lesser degree tax enforcement and tax awareness both directly and indirectly impacted upon taxpayer compliance. It is envisaged that the results of this study provide useful information for revenue collecting authorities and have implications for tax policy development.

Keywords. Compliant, Non- Compliant, Taxpayers, Ethiopia