Tax Evasion Attitudes among Category A and B Business Income Taxpayers in Ethiopia

This study investigates the activities of tax evasion attitude in Ethiopia using a mixed-methods approach. The target populations are category A and B taxpayers and tax officials of revenue offices. Data is collected through surveys and structured interviews with taxpayers, focusing on variables such as reported income, tax compliance rates, and demographic factors. Statistical techniques, regression analysis, and in-depth interviews with key stakeholders are employed for nuanced insights. Thematic analysis is employed for qualitative data analysis, with ethical considerations prioritized. Data was collected from 566 taxpayers and selected officials, using a mixed research approach with both descriptive and explanatory research design. The dependent variable is tax evasion attitude, measured by questionnaires that show taxpayers' compliance indirectly. The study found that variables such as the complexity of the tax system, tax rate, weak tax administration, compliant peers, and the role of tax advisors have a positive relationship with tax evasion attitudes. Government legitimacy had a weak and negative correlation with tax evasion attitude, while peer influence, corruption, Tax rate and tax system had a weak and positive correlation with tax evasion attitude. The study recommends that revenue authority should train taxpayers to prepare and present their tax returns, encourage large taxpayers to establish their own accounting information systems and collaborate with certified accountants.