DETERMINANTS OF TAX EVASION ON CATEGORY "A" TAX PAYERS OF SILTE ZONE, CENTERAL ETHIOPIA REGIONAL STATE

Abstract Tax evasion is a significant issue that affects the financial stability and economic growth of regions worldwide. The objective of this study was investigating the determinants of Tax evasion in Silte Zone central Ethiopia focusing specifically on Category "A" taxpayers. To achieve this objective, quantitative research method and an explanatory research design would be employed. The target population for this study was Category "A" taxpayers, within the Silte Zone. The study used the stratified random sampling and purposive sampling to select weredas and town admiration and Simple random sampling is used to select respondents. The data was collected through structured questionnaires distributed to the selected taxpayers; the collected data was subjected to rigorous analysis using various statistical tools, including mean, standard deviation, correlation, and multiple regression analysis. These statistical methods would help us to identify determinant of tax evasion and provide a comprehensive understanding of the issue within the local context. Moreover, the pooled OLS regression results of the study indicate that Tax knowledge, Tax fines and enforcement, Tax fairness, have a positive and significant impact on Tax evasion. Whereas, Tax rate, Corruption, and negative attitude of tax payers have a negative and significant influence on Tax evasion. The findings of this research will offer valuable insights for policymakers, tax authorities, and other stakeholders to develop effective strategies and interventions aimed at reducing tax evasion and enhancing tax compliance among Category "A" taxpayers in the Silte Zone.