E-tax System Adoption and Tax Compliance in Ethiopia: Large and Medium Taxpayers' Experience

Seid Yimam, Kebede Lidetu and Tihtina Belete

No 18216, Working Papers from Institute of Development Studies, International Centre for Tax and Development

Abstract: In the last decade, tax administrations in developing countries have been introducing technological innovations such as e-filing and e-payment platforms. The main aim of introducing these technologies is to improve tax compliance and boost revenue collection by increasing convenience and flexibility for taxpayers and reducing their compliance costs. E-filing and e-payment could save taxpayers time preparing and returning taxes and reduce errors and opportunities for corruption. However, the adoption of these technologies and their effectiveness in improving tax compliance could be undermined by several factors. Using tax administrative records, we examined the adoption rate trend of the e-filing system and the correlation between e-filing adoption and tax compliance of large and medium taxpayers in Ethiopia. The timeliness of value-added tax (VAT) and corporate income tax (CIT) return filing and the amount of tax declared are the two main compliance indicators used in this study. Furthermore, we explored the existing challenges and the way forward to improve the adoption of the e-tax system using focus group discussions (FGDs).

Keywords: Economic Development (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-acc, nep-iue, nep-pbe and nep-pub
References: Add references at CitEc
Citations:

Downloads: (external link)
https://opendocs.ids.ac.uk/opendocs/handle/20.500.12413/18216

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:idq:ictduk:18216

Access Statistics for this paper

More papers in Working Papers from Institute of Development Studies, International Centre for Tax and Development
Bibliographic data for series maintained by CATS administrator ().