Attitude of Rental Tax Payers and their Compliance with Tax System: An Empirical Study of Mekelle City, Ethiopia

Suresh Vadde
Associate Professor, Department of Accounting & Finance
College of Business & Economics
Mekelle University, Melelle, Ethiopia.
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.


The primary goal of a revenue authority is to collect the taxes and duties payable in accordance with the law and to do this in such a manner that will sustain confidence in the tax system and its administration. The actions of taxpayers — whether due to ignorance, carelessness, recklessness, or deliberate evasion — as well as weaknesses in a tax administration mean that instances of failure to comply with the law are inevitable. Therefore, tax administration should have in place strategies and structures to ensure that non-compliance with tax law is kept to a minimum. Understanding the rental income taxpayers' attitude and their compliance with tax system is one of the most important factors for increasing the revenue of a government. However, the amount of tax that has to be collected from rental income is not sufficient enough to undertake developmental activities. A number of reasons may be attributable for low compliance and attitudinal differences of rental taxpayers such as lack of awareness and inability in capturing the tax laws and regulations. Hence, the purpose of this study is to identify and understand the major factors that influence attitudes of rental taxpayers and their compliance behavior with tax system. Moreover, it is also designed to establish a relationship between the attitudes of rental taxpayers and their tax compliance behaviors.

Full Text [PDF]