The Effect of Electronic Taxing System in Creating Taxpayers Insight about the Equity and Justice of Tax System

Abstract

is well known, nowadays the government of any state has to collect sufficient revenue as much as possible in order finance its operation. But in reality, government of any state has facing difficulty in collecting revenue from its citizen due to various ins and outs. Among the most important reasons one is lack of tax fairness and justice. The primary objective of this study was to examine the effect of electronic taxation system in creating an insight about the fairness of tax administration system in Wolaita Sodo town. The cross sectional survey method was adopted and self administered survey and in-depth interview has been used to collect the data. The data has been collected from 192 individual business profit tax payers from category “B” tax payers and 20 tax officers for interview through systematic random sampling techniques. The data has been analyzed by correlations and multiple regressions. The findings shows that fairness of taxation system is directly related with tax complexity, tax general knowledge, tax general fairness, exchange fairness, horizontal fairness, vertical fairness, redistributive fairness and administrative fairness and have significant effects on tax fairness in the current tax system but General fairness is insignificant at 5% level of CI.Finally, based on the findings possible recommendations were given. The tax authorities should provide sufficient tax training to improve the awareness of tax payer’s towards taxation system. More efforts would be exerted in providing tax information through various means at local and federal level about the rights and duties of tax payer’s to bring the growth in the economy of the country in general and well being of its citizens in particular. Thereby, enhancing fair tax collection and providing basis for further research in a broader scope.