EVALUATION OF SPATIOTEMPORAL VARIATION OF KULFO RIVER WATER QUALITY

Abstract

This study examines tax compliance and its determinants in Gamo Zone category ‘A’ business income tax payers in southern Ethiopia. To do this, data was collected with the aid of structured questionnaires, administered to 311 respondents using proportionate simple random sampling procedure. Quantitative research approach was applied. The data was examined with the use of descriptive statistics and econometric model particularly ordered logit model. The result of ordered logistic regression showed that, among different variables tested, tax compliance was positively affected by tax audits, fine and penalties, simplicity of the tax system, strength of the tax authority, tax knowledge, educational level and perception of government spending but tax rates, tax compliance cost and perceptions fairness of tax system have a negative effect on taxpayers’ compliance. It was therefore recommended that tax authority should improving tax audit quality and endeavor to frequent businesses for their records to be audited, Reasonable level of fines and penalty to be implemented and also need to work on tax incentives and recognition awards for those who pay their tax liabilities voluntarily on time. The tax authority ought to conduct effective and sustainable awareness creation programmers and tax education for the public in general and to tax payers. The tax authority should also simplify the tax system and tax laws become easily and clearly understandable to tax payers. Efficient service delivery to taxpayers is a key factor against which the strength of the authority and needs to strengthen itself by educating and training its employees. The government shall maintain accountability and transparency on how to the revenue collected from taxation and being disbursed to provide social services efficiently and effectively to the society, so that tax payers will have trust and positive attitude towards the tax that they pay and the tax system.