The general objective of the study is to identify the determinant causes of tax evasion in the Ministry of Revenue Large Taxpayers branch office. This study tries to address the following specific objectives: To identify the impact of tax rate and level of income on tax evasion. To indicate whether inflation affects tax evasion or not. To show effects of the complexity of the tax system such as penalty and probability of detection on tax evasion. To detect the relationship between the perceived role of government and tax evasion. To determine the effects of attitude and perception on tax evasion. To identify the effects of age, gender, education level of taxpayers and pear pressure on tax evasion.
Tax evasion is a global scenario irrespective of any attribute of a country and has been experienced in both developed as well as developing countries. Unless nations can mitigate and minimize the magnitude of tax evasion, it will be difficult to overcome illicit financial activities & cash flows and drain channels of corruption.
As per the above article, Yonas Sendaba and his group's tax evasion includes all unlawful activities by a taxpayer with the motive of minimizing tax liability. It occurs when taxpayers intentionally failed to execute their tax responsibility. It is an intentional violation of laws and it is evident in situations where tax liability is fraudulently reduced, or false claims are filled on the revenue tax form. Tax evasion does not only minimizes government revenue but also harms the current and future economic development of the country. Whether evaders understand or not, they share the problem of the society caused by tax evasion. Most public goods provided by the government are financed by revenue collected from the tax.
As the collection of revenue from tax and customs minimizes, the government is forced to minimize the provision of goods and services to the general public. As the result, related factors of development are affected. However, the factors of tax evasion are not well identified; there are indicators of the presence of tax evasion and its effects. Therefore, this research tries to investigate major factors of tax evasion and prioritize these factors for better recommendation to the concerned body and contribute to the improvement of the tax system.
Inhaltsverzeichnis (Table of Contents)
- CHAPTER ONE: INTRODUCTION
- 1.1 Background of the study
- 1.2 Statement of the problem
- 1.3 Research questions
- 1.4 Objectives of the study
- 1.4.1 General objective of the study
- 1.4.2 Specific objective
- 1.5 Significance of the study
- 1.6 Scope of the study
- 1.7 Description of the Study Area
- 1.8 Limitation of the study
- 1.9 Organization of the Study
- CHAPTER TWO: REVIEW OF RELATED LITERATURE
- 2.1 Theoretical Literature Review
- 2.1.1 Ethiopian tax policy
- 2.1.2 Tax Evasion
- 2.1.3 Why Do Taxpayers evade tax?
- 2.1.4 Risk level of the taxpayer
- 2.1.5 Methods for estimating the extent of tax evasion
- 2.2 Why should we take care of tax evasion?
- 2.3 Empirical Literature Review
- 2.3.1 Tax
- 2.3.2 History of Taxation in Ethiopia
- 2.3.3 Tax Evasion
- 2.3.4 Causes of tax evasion
- 2.3.5 Determinants of tax evasion
- 2.4 Conceptual framework
- 2.5 Summary and Knowledge Gap
- CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
- 3.1 Introduction
- 3.2 Operational definition of variables
- 3.3 Research Design
- 3.4 Research approach
- 3.5 Population and Sample
- 3.6 Population, sample, and sampling techniques
- 3.6.1 Sample size
- 3.6.2 Sampling techniques
- 3.7 Research Approach
- 3.8 Type of data and data collection tools and method
- 3.9 Data analysis techniques
- 3.10 Ethical considerations in the study
- CHAPTER FOUR: DATA ANALYSIS AND FINDINGS
- 4.1 Introduction
- 4.2 Demographic data
- 4.3 Analysis of data results concerning the variables
- 4.3.1 Effects of tax evasion on resource accumulation of individuals, public service, and government debt
- 4.3.2 Impacts of Tax Rate on tax evasion
- 4.3.3 Impacts of income levels of taxpayers on tax evasion
- 4.3.4 Impacts of inflation rate on tax evasion
- 4.3.5 Impacts of the probability of detection and capacity of investigation
- 4.3.6 Effects of penalty on tax evasion
- 4.3.7 Impacts of the complexity of tax law and its administration system on tax evasion
- 4.3.8 Impact of perceived roll of Government on the use of tax revenue to public service on tax evasion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to identify the factors contributing to tax evasion within the large taxpayers' branch office of the Ethiopian Ministry of Revenue. It investigates the impact of tax evasion on public services and resource allocation. The study uses both descriptive analysis and a review of existing literature to achieve its objectives.
- Determinants of tax evasion in Ethiopia
- The impact of tax evasion on government revenue and public services
- Effectiveness of current tax policies and enforcement mechanisms
- The role of taxpayer perception and behavior in tax compliance
- Potential solutions and policy recommendations to mitigate tax evasion
Zusammenfassung der Kapitel (Chapter Summaries)
CHAPTER ONE: INTRODUCTION: This chapter introduces the research topic, outlining the problem of tax evasion in Ethiopia's Ministry of Revenue and its negative consequences. It clearly states the research questions and objectives, defining the scope and limitations of the study. The chapter also provides background information on the study area and details the methodology employed. It sets the stage for the subsequent chapters by establishing the context and rationale for the research.
CHAPTER TWO: REVIEW OF RELATED LITERATURE: This chapter presents a comprehensive review of existing literature on tax evasion, focusing on theoretical frameworks and empirical studies. It examines Ethiopian tax policy, exploring various theories explaining taxpayer behavior and the methods used to estimate tax evasion. The chapter also analyzes previous research on the causes and determinants of tax evasion, laying a foundation for the study's own investigation. This review identifies key knowledge gaps and sets the stage for the research design and methodology outlined in subsequent chapters.
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY: This chapter details the research design and methodology used in the study. It explains the chosen research approach, the sampling techniques employed, and the data collection methods. It elaborates on the operational definitions of key variables and the data analysis techniques used to interpret the results. The chapter also addresses the ethical considerations involved in the research, ensuring the integrity and validity of the findings.
CHAPTER FOUR: DATA ANALYSIS AND FINDINGS: This chapter presents the findings of the study. It begins with an analysis of demographic data, followed by a detailed examination of the relationships between the key variables and tax evasion. The chapter explores the effects of tax evasion on resource accumulation, public services, and government debt, as well as the impacts of tax rates, income levels, inflation, and enforcement mechanisms on taxpayer compliance. The findings are systematically presented and interpreted in relation to the research objectives and existing literature.
Schlüsselwörter (Keywords)
Tax evasion, tax compliance, Ethiopia, Ministry of Revenue, large taxpayers, tax policy, tax administration, public finance, resource allocation, taxpayer behavior, enforcement, policy recommendations.
Frequently Asked Questions: A Comprehensive Language Preview
What is the overall purpose of this document?
This document provides a comprehensive preview of a thesis, including the table of contents, objectives and key themes, chapter summaries, and keywords. It's designed to give a clear overview of the research conducted on tax evasion in Ethiopia.
What is the research topic of the thesis?
The thesis focuses on tax evasion within the large taxpayers' branch office of the Ethiopian Ministry of Revenue. It investigates the determinants of tax evasion, its impact on public services and resource allocation, and potential solutions.
What are the main objectives of the study?
The study aims to identify factors contributing to tax evasion, analyze its impact on government revenue and public services, assess the effectiveness of current tax policies and enforcement, understand the role of taxpayer perception and behavior, and provide policy recommendations to mitigate tax evasion.
What are the key themes explored in the thesis?
Key themes include determinants of tax evasion in Ethiopia, the impact of tax evasion on government revenue and public services, the effectiveness of current tax policies and enforcement mechanisms, the role of taxpayer perception and behavior in tax compliance, and potential solutions and policy recommendations.
What is covered in Chapter One?
Chapter One provides an introduction, outlining the background, problem statement, research questions, objectives, significance, scope, limitations, and organization of the study. It sets the context for the research.
What is covered in Chapter Two?
Chapter Two presents a literature review, examining theoretical and empirical studies on tax evasion in Ethiopia. It explores relevant theories, previous research findings, and identifies knowledge gaps to inform the study’s methodology.
What is covered in Chapter Three?
Chapter Three details the research design and methodology, including the research approach, sampling techniques, data collection methods, data analysis techniques, and ethical considerations.
What is covered in Chapter Four?
Chapter Four presents the data analysis and findings, including demographic data and analysis of variables affecting tax evasion. It explores the effects of tax evasion on resource accumulation, public services, and government debt, and examines the impact of various factors on tax compliance.
What are the key words associated with this research?
Key words include: Tax evasion, tax compliance, Ethiopia, Ministry of Revenue, large taxpayers, tax policy, tax administration, public finance, resource allocation, taxpayer behavior, enforcement, and policy recommendations.
What type of analysis is used in this research?
The study employs both descriptive analysis and a review of existing literature to achieve its objectives. Specific data analysis techniques are detailed in Chapter Three.
Who is the target audience for this document?
This document is intended for academic use, allowing for the analysis of themes in a structured and professional manner.
- Quote paper
- Anonym (Author), Factors Affecting Tax Evasion in Ministry of Revenues. The Case of Large Taxpayers Branch Office, Munich, GRIN Verlag, https://www.grin.com/document/1294318
