Determinants of Tax Compliance Behavior in Presumptive Taxation System. The Case of Dire Dawa Administration

Abstract

In attempt to reverse the gap between public revenue and public good spendings, many researchers had identified multi-faceted factors using varity of tax compliance methods. However the issue is not yet clearlly known in many countries including Ethiopi due to the limited and inconclusive results. To furher the understanding of tax compliance behaviour in Ethiopia, this study examined the determinants of tax compliance behaviour found in Dire Dawa Adminstaration using behavioral model.The informations randomly collected from299 was analysed using both descriptive statistics and multiple regression Model.In the study,we found that majority of the respondents have settled their tax liabilities without any penality. However, poor services of tax authority , lower level of tax knowlede,and poor perception to government spendings were challenges to tax compliance behaviour.Thus we suggested improving tax knowledge and increasing the attitude of government spendings help to raise the tax complaince behaviour of individuals.

Keywords: Tax compliance; CDQ ; Presumptive taxation;and Dire Dawa Adminstration