Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)

Kanbiro Orkaido; Tamirat Beyene; Solomon Mitiku; Yisehak Tesiso

doi:doi:10.11648/j.jwer.20241301.12

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Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)

Kanbiro Orkaido^*, Tamirat Beyene, Solomon Mitiku, Yisehak Tesiso

Published in Journal of World Economic Research (Volume 13, Issue 1)

Received: 11 February 2024 Accepted: 28 February 2024 Published: 20 March 2024

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Abstract

This research study aimed to analyze the factors influencing presumptive tax voluntary compliance in Gedeo Zone. The dependent variable, presumptive tax voluntary compliance, was examined in relation to various independent variables including collection enforcement, tax evasion, taxpayers' awareness, existence of corruption, tax incentives, transparency and fairness, and a supportive tax environment. A positivism research philosophy was adopted, utilizing a quantitative research approach and a cross-sectional research design. Primary data was collected through a Likert scale questionnaire from 318 targeted category "C" taxpayers. The findings of the ordered logistic regression indicated that collection enforcement, taxpayers' awareness, tax incentives, transparency and fairness, and a supportive tax environment have a statistically significant and positive influence on presumptive tax voluntary compliance in Gedeo Zone. Conversely, tax evasion and the existence of corruption were found to have a negative and statistically significant impact on taxpayers' compliance with presumptive tax. In conclusion, this study highlights the importance of implementing effective collection enforcement mechanisms, enhancing taxpayers' awareness programs, tax incentives, promoting transparency and fairness, and creating a supportive tax environment to enhance presumptive tax voluntary compliance. Furthermore, efforts should be made to tackle tax evasion and address issues related to corruption in order to improve compliance rates. The results of this study will aid policymakers and tax administrators in formulating strategies to enhance presumptive tax compliance in Gedeo Zone and potentially inform similar tax systems in other regions.

Published in	Journal of World Economic Research (Volume 13, Issue 1)
DOI	10.11648/j.jwer.20241301.12
Page(s)	11-23
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), 2024. Published by Science Publishing Group

Keywords

Presumptive Tax, Voluntary Compliance, Collection Enforcement, Tax Evasion, Taxpayers' Awareness, Corruption, Tax Incentives, Supportive Tax Environment

References

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APA Style

Orkaido, K., Beyene, T., Mitiku, S., Tesiso, Y. (2024). Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). Journal of World Economic Research, 13(1), 11-23. https://doi.org/10.11648/j.jwer.20241301.12

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ACS Style

Orkaido, K.; Beyene, T.; Mitiku, S.; Tesiso, Y. Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). J. World Econ. Res. 2024, 13(1), 11-23. doi: 10.11648/j.jwer.20241301.12

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AMA Style

Orkaido K, Beyene T, Mitiku S, Tesiso Y. Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). J World Econ Res. 2024;13(1):11-23. doi: 10.11648/j.jwer.20241301.12

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@article{10.11648/j.jwer.20241301.12,
  author = {Kanbiro Orkaido and Tamirat Beyene and Solomon Mitiku and Yisehak Tesiso},
  title = {Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)},
  journal = {Journal of World Economic Research},
  volume = {13},
  number = {1},
  pages = {11-23},
  doi = {10.11648/j.jwer.20241301.12},
  url = {https://doi.org/10.11648/j.jwer.20241301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20241301.12},
  abstract = {This research study aimed to analyze the factors influencing presumptive tax voluntary compliance in Gedeo Zone. The dependent variable, presumptive tax voluntary compliance, was examined in relation to various independent variables including collection enforcement, tax evasion, taxpayers' awareness, existence of corruption, tax incentives, transparency and fairness, and a supportive tax environment. A positivism research philosophy was adopted, utilizing a quantitative research approach and a cross-sectional research design. Primary data was collected through a Likert scale questionnaire from 318 targeted category "C" taxpayers. The findings of the ordered logistic regression indicated that collection enforcement, taxpayers' awareness, tax incentives, transparency and fairness, and a supportive tax environment have a statistically significant and positive influence on presumptive tax voluntary compliance in Gedeo Zone. Conversely, tax evasion and the existence of corruption were found to have a negative and statistically significant impact on taxpayers' compliance with presumptive tax. In conclusion, this study highlights the importance of implementing effective collection enforcement mechanisms, enhancing taxpayers' awareness programs, tax incentives, promoting transparency and fairness, and creating a supportive tax environment to enhance presumptive tax voluntary compliance. Furthermore, efforts should be made to tackle tax evasion and address issues related to corruption in order to improve compliance rates. The results of this study will aid policymakers and tax administrators in formulating strategies to enhance presumptive tax compliance in Gedeo Zone and potentially inform similar tax systems in other regions.
},
 year = {2024}
}

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TY  - JOUR
T1  - Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)
AU  - Kanbiro Orkaido
AU  - Tamirat Beyene
AU  - Solomon Mitiku
AU  - Yisehak Tesiso
Y1  - 2024/03/20
PY  - 2024
N1  - https://doi.org/10.11648/j.jwer.20241301.12
DO  - 10.11648/j.jwer.20241301.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 11
EP  - 23
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20241301.12
AB  - This research study aimed to analyze the factors influencing presumptive tax voluntary compliance in Gedeo Zone. The dependent variable, presumptive tax voluntary compliance, was examined in relation to various independent variables including collection enforcement, tax evasion, taxpayers' awareness, existence of corruption, tax incentives, transparency and fairness, and a supportive tax environment. A positivism research philosophy was adopted, utilizing a quantitative research approach and a cross-sectional research design. Primary data was collected through a Likert scale questionnaire from 318 targeted category "C" taxpayers. The findings of the ordered logistic regression indicated that collection enforcement, taxpayers' awareness, tax incentives, transparency and fairness, and a supportive tax environment have a statistically significant and positive influence on presumptive tax voluntary compliance in Gedeo Zone. Conversely, tax evasion and the existence of corruption were found to have a negative and statistically significant impact on taxpayers' compliance with presumptive tax. In conclusion, this study highlights the importance of implementing effective collection enforcement mechanisms, enhancing taxpayers' awareness programs, tax incentives, promoting transparency and fairness, and creating a supportive tax environment to enhance presumptive tax voluntary compliance. Furthermore, efforts should be made to tackle tax evasion and address issues related to corruption in order to improve compliance rates. The results of this study will aid policymakers and tax administrators in formulating strategies to enhance presumptive tax compliance in Gedeo Zone and potentially inform similar tax systems in other regions.

VL  - 13
IS  - 1
ER  -

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Author Information

Kanbiro Orkaido

College of Business and Economics, Dilla University, Dilla, Ethiopia

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Tamirat Beyene

College of Business and Economics, Dilla University, Dilla, Ethiopia

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Solomon Mitiku

College of Business and Economics, Dilla University, Dilla, Ethiopia

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Yisehak Tesiso

College of Business and Economics, Dilla University, Dilla, Ethiopia

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APA Style

Orkaido, K., Beyene, T., Mitiku, S., Tesiso, Y. (2024). Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). Journal of World Economic Research, 13(1), 11-23. https://doi.org/10.11648/j.jwer.20241301.12

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ACS Style

Orkaido, K.; Beyene, T.; Mitiku, S.; Tesiso, Y. Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). J. World Econ. Res. 2024, 13(1), 11-23. doi: 10.11648/j.jwer.20241301.12

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AMA Style

Orkaido K, Beyene T, Mitiku S, Tesiso Y. Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone). J World Econ Res. 2024;13(1):11-23. doi: 10.11648/j.jwer.20241301.12

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@article{10.11648/j.jwer.20241301.12,
  author = {Kanbiro Orkaido and Tamirat Beyene and Solomon Mitiku and Yisehak Tesiso},
  title = {Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)},
  journal = {Journal of World Economic Research},
  volume = {13},
  number = {1},
  pages = {11-23},
  doi = {10.11648/j.jwer.20241301.12},
  url = {https://doi.org/10.11648/j.jwer.20241301.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20241301.12},
  abstract = {This research study aimed to analyze the factors influencing presumptive tax voluntary compliance in Gedeo Zone. The dependent variable, presumptive tax voluntary compliance, was examined in relation to various independent variables including collection enforcement, tax evasion, taxpayers' awareness, existence of corruption, tax incentives, transparency and fairness, and a supportive tax environment. A positivism research philosophy was adopted, utilizing a quantitative research approach and a cross-sectional research design. Primary data was collected through a Likert scale questionnaire from 318 targeted category "C" taxpayers. The findings of the ordered logistic regression indicated that collection enforcement, taxpayers' awareness, tax incentives, transparency and fairness, and a supportive tax environment have a statistically significant and positive influence on presumptive tax voluntary compliance in Gedeo Zone. Conversely, tax evasion and the existence of corruption were found to have a negative and statistically significant impact on taxpayers' compliance with presumptive tax. In conclusion, this study highlights the importance of implementing effective collection enforcement mechanisms, enhancing taxpayers' awareness programs, tax incentives, promoting transparency and fairness, and creating a supportive tax environment to enhance presumptive tax voluntary compliance. Furthermore, efforts should be made to tackle tax evasion and address issues related to corruption in order to improve compliance rates. The results of this study will aid policymakers and tax administrators in formulating strategies to enhance presumptive tax compliance in Gedeo Zone and potentially inform similar tax systems in other regions.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - Examining Factors Affecting Presumptive Tax Voluntary Compliance (A Case Study in Gedeo Zone)
AU  - Kanbiro Orkaido
AU  - Tamirat Beyene
AU  - Solomon Mitiku
AU  - Yisehak Tesiso
Y1  - 2024/03/20
PY  - 2024
N1  - https://doi.org/10.11648/j.jwer.20241301.12
DO  - 10.11648/j.jwer.20241301.12
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 11
EP  - 23
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20241301.12
AB  - This research study aimed to analyze the factors influencing presumptive tax voluntary compliance in Gedeo Zone. The dependent variable, presumptive tax voluntary compliance, was examined in relation to various independent variables including collection enforcement, tax evasion, taxpayers' awareness, existence of corruption, tax incentives, transparency and fairness, and a supportive tax environment. A positivism research philosophy was adopted, utilizing a quantitative research approach and a cross-sectional research design. Primary data was collected through a Likert scale questionnaire from 318 targeted category "C" taxpayers. The findings of the ordered logistic regression indicated that collection enforcement, taxpayers' awareness, tax incentives, transparency and fairness, and a supportive tax environment have a statistically significant and positive influence on presumptive tax voluntary compliance in Gedeo Zone. Conversely, tax evasion and the existence of corruption were found to have a negative and statistically significant impact on taxpayers' compliance with presumptive tax. In conclusion, this study highlights the importance of implementing effective collection enforcement mechanisms, enhancing taxpayers' awareness programs, tax incentives, promoting transparency and fairness, and creating a supportive tax environment to enhance presumptive tax voluntary compliance. Furthermore, efforts should be made to tackle tax evasion and address issues related to corruption in order to improve compliance rates. The results of this study will aid policymakers and tax administrators in formulating strategies to enhance presumptive tax compliance in Gedeo Zone and potentially inform similar tax systems in other regions.

VL  - 13
IS  - 1
ER  -

Copy | Download