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What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia

Received: 28 May 2021     Accepted: 6 July 2021     Published: 13 July 2021
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Abstract

Tax evasion is a phenomenon in every nation even if the magnitude and causes may vary. It is associated with the introduction of taxation itself; tax evasion is a serious problem to a tax system. Therefore, examining what contributes to evasion in a given tax system is vital so that the negative consequences might be identified and solved. The study sought to identifies determinant factors of taxes evasion attitude of taxpayers in selected five zones: Gedeo, Gamo, Hadiya, Halaba and Gurage zone of Southern Nations, Nationalities and Peoples Regions (SNNPR) Ethiopia. Using Yamane (1967) formula and sampled 956 respondents. We have categorized our respondents as evaders, non-evaders and neutral based on the average value of their response and exclude neutral respondents. Accordingly, we used 768 questionnaires. We used a logistic regression model to examine what determines the evasion attitude of taxpayers. It is identified that significant difference among taxpayers towards tax evasion at zone level; Category A taxpayers are inclined to evasion compared to B; the level of education, peer, tax rate, and tax system has contributed to tax evasion attitude positively; and Authorized accountants are found to be facilitators for evasion. Based on our result we concluded that system orients variables are the most determinant factors affecting the evasion attitude of taxpayers compared to demographic attributes.

Published in Journal of Finance and Accounting (Volume 9, Issue 4)
DOI 10.11648/j.jfa.20210904.12
Page(s) 117-126
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Tax Evasion Attitude, Determinants, Logistic Regression Model, SNNPR, Ethiopia

References
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Cite This Article
  • APA Style

    Yonas Sendaba, Tsegazeab Teklemariam, Daniel Balcha, Samson Wondimu, Tariku Lorato. (2021). What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia. Journal of Finance and Accounting, 9(4), 117-126. https://doi.org/10.11648/j.jfa.20210904.12

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    ACS Style

    Yonas Sendaba; Tsegazeab Teklemariam; Daniel Balcha; Samson Wondimu; Tariku Lorato. What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia. J. Finance Account. 2021, 9(4), 117-126. doi: 10.11648/j.jfa.20210904.12

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    AMA Style

    Yonas Sendaba, Tsegazeab Teklemariam, Daniel Balcha, Samson Wondimu, Tariku Lorato. What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia. J Finance Account. 2021;9(4):117-126. doi: 10.11648/j.jfa.20210904.12

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  • @article{10.11648/j.jfa.20210904.12,
      author = {Yonas Sendaba and Tsegazeab Teklemariam and Daniel Balcha and Samson Wondimu and Tariku Lorato},
      title = {What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia},
      journal = {Journal of Finance and Accounting},
      volume = {9},
      number = {4},
      pages = {117-126},
      doi = {10.11648/j.jfa.20210904.12},
      url = {https://doi.org/10.11648/j.jfa.20210904.12},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210904.12},
      abstract = {Tax evasion is a phenomenon in every nation even if the magnitude and causes may vary. It is associated with the introduction of taxation itself; tax evasion is a serious problem to a tax system. Therefore, examining what contributes to evasion in a given tax system is vital so that the negative consequences might be identified and solved. The study sought to identifies determinant factors of taxes evasion attitude of taxpayers in selected five zones: Gedeo, Gamo, Hadiya, Halaba and Gurage zone of Southern Nations, Nationalities and Peoples Regions (SNNPR) Ethiopia. Using Yamane (1967) formula and sampled 956 respondents. We have categorized our respondents as evaders, non-evaders and neutral based on the average value of their response and exclude neutral respondents. Accordingly, we used 768 questionnaires. We used a logistic regression model to examine what determines the evasion attitude of taxpayers. It is identified that significant difference among taxpayers towards tax evasion at zone level; Category A taxpayers are inclined to evasion compared to B; the level of education, peer, tax rate, and tax system has contributed to tax evasion attitude positively; and Authorized accountants are found to be facilitators for evasion. Based on our result we concluded that system orients variables are the most determinant factors affecting the evasion attitude of taxpayers compared to demographic attributes.},
     year = {2021}
    }
    

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    T1  - What Determines Tax Evasion Attitude: A Study in Selected Zones of SNNPR, Ethiopia
    AU  - Yonas Sendaba
    AU  - Tsegazeab Teklemariam
    AU  - Daniel Balcha
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    AU  - Tariku Lorato
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    T2  - Journal of Finance and Accounting
    JF  - Journal of Finance and Accounting
    JO  - Journal of Finance and Accounting
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    EP  - 126
    PB  - Science Publishing Group
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    UR  - https://doi.org/10.11648/j.jfa.20210904.12
    AB  - Tax evasion is a phenomenon in every nation even if the magnitude and causes may vary. It is associated with the introduction of taxation itself; tax evasion is a serious problem to a tax system. Therefore, examining what contributes to evasion in a given tax system is vital so that the negative consequences might be identified and solved. The study sought to identifies determinant factors of taxes evasion attitude of taxpayers in selected five zones: Gedeo, Gamo, Hadiya, Halaba and Gurage zone of Southern Nations, Nationalities and Peoples Regions (SNNPR) Ethiopia. Using Yamane (1967) formula and sampled 956 respondents. We have categorized our respondents as evaders, non-evaders and neutral based on the average value of their response and exclude neutral respondents. Accordingly, we used 768 questionnaires. We used a logistic regression model to examine what determines the evasion attitude of taxpayers. It is identified that significant difference among taxpayers towards tax evasion at zone level; Category A taxpayers are inclined to evasion compared to B; the level of education, peer, tax rate, and tax system has contributed to tax evasion attitude positively; and Authorized accountants are found to be facilitators for evasion. Based on our result we concluded that system orients variables are the most determinant factors affecting the evasion attitude of taxpayers compared to demographic attributes.
    VL  - 9
    IS  - 4
    ER  - 

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Author Information
  • Department of Accounting and Finance, Dilla University, Dilla, Ethiopia

  • Department of Accounting and Finance, Dilla University, Dilla, Ethiopia

  • Department of Accounting and Finance, Dilla University, Dilla, Ethiopia

  • Department of Accounting and Finance, Dilla University, Dilla, Ethiopia

  • Department of Economics, Dilla University, Dilla, Ethiopia

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