THE EFFECT OF E-TAX FILING APPLICATION SYSTEMS ON TAX COMPLIANCE: THE CASE OF THE ETHIOPIAN REVENUE AND CUSTOMS AUTHORITY

Abstract

Tax compliance is important in the sense that by paying their taxes, individuals and businesses are funding the government's tax revenue. Government tax revenue is important for a variety of reasons, from balancing the budget to providing goods and services to its citizens. This study is conducted to determine the influence of electronic tax filing system on tax compliance in large tax payers’ branch office. The specific objectives of the study include examination of the impact of network connectivity and technical skills of filing concerns of e-tax filing on Tax Compliance among large taxpayers. The study used descriptive and explanatory research design in which quantitative data have been collected. Primary data had been obtained by using structured questionnaire. . Respondents of this study were large taxpayers who registered in large taxpayers’ branch office. A sample size of 240 respondents had been selected from registered large taxpayers at LTO and 220 questionnaires have been returned with a 91.7% response rate. Results of the research variables have been described, correlation and regression analysis had been conducted, Hypothesis and Data validity, and goodness of fit had been tested with composite reliability. Results interpreted from Regression Table using SPSS Software. This study reveals that e- tax filing system and technical skill of filing had a statistically significant effect on taxpayer compliance. But the network connectivity had not able to statistically significant influence on taxpayer compliance. The researcher finally recommended that the electronic tax filing process should be simplified with clear instructions and guidelines provided on the website and the system server should be upgraded to increase on the system stability experienced. Tax consultation centers should be increased in the country where taxpayers can acquire knowledge and filing skills