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Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers

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  • Erstu Tarko Kassa

    (Woldia University)

Abstract

The main purpose of this paper is to investigate factors that influence taxpayers to engage in tax evasion. The researcher used descriptive and explanatory research design and followed a quantitative research approach. To undertake this study, primary and secondary data has been utilized. From the target population of 4979, by using a stratified and simple random sampling technique, 370 respondents were selected. To verify the data quality, the exploratory factor analysis (EFA) was conducted for each variable measurements. After factor analysis has been done, the data were analyzed by using Pearson correlation and multiple regression analysis. The finding of the study revealed that the relationship between the study independent variables with the dependent variable was positive and statistically significant. The regression analysis also indicates that tax fairness, tax knowledge, and moral obligation significantly influence taxpayers to engage in tax evasion, and the remaining moral obligation and subjective norms were not statistically significant to influence taxpayers to engage in tax evasion.

Suggested Citation

  • Erstu Tarko Kassa, 2021. "Factors influencing taxpayers to engage in tax evasion: evidence from Woldia City administration micro, small, and large enterprise taxpayers," Journal of Innovation and Entrepreneurship, Springer, vol. 10(1), pages 1-16, December.
    • Handle: RePEc:spr:joiaen:v:10:y:2021:i:1:d:10.1186_s13731-020-00142-4
    DOI: 10.1186/s13731-020-00142-4
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    Cited by:

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    2. Nayef Mohammad Al-Rahamneh & Zainol Bidin, 2022. "The Effect of Tax Fairness, Peer Influence, and Moral Obligation on Sales Tax Evasion among Jordanian SMEs," JRFM, MDPI, vol. 15(9), pages 1-15, September.
    3. Rebecca Maquiling, 2023. "Factors influencing voluntary tax compliance of self-employed individuals in Davao city," Technium Business and Management, Technium Science, vol. 4(1), pages 39-55.
    4. Hamisi K. Sama, 2022. "Conceptualising Tax Avoidance on Industry 4.0 in Tanzania: The Imperatives of Value Chain Analysis," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(4), pages 123-134.
    5. Monge, Manuel & Poza, Carlos & Borgia, Sofía, 2022. "A proposal of a suspicion of tax fraud indicator based on Google trends to foresee Spanish tax revenues," International Economics, Elsevier, vol. 169(C), pages 1-12.
    6. Renyan Mu & Nigatu Mengesha Fentaw & Lu Zhang, 2022. "The Impacts of Value-Added Tax Audit on Tax Revenue Performance: The Mediating Role of Electronics Tax System, Evidence from the Amhara Region, Ethiopia," Sustainability, MDPI, vol. 14(10), pages 1-22, May.
    7. Lidija Hauptman & Berislav Žmuk & Ivana Pavić, 2024. "Tax Compliance in Slovenia: An Empirical Assessment of Tax Knowledge and Fairness Perception," JRFM, MDPI, vol. 17(3), pages 1-32, February.

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