An Investigation Into the Causes of Tax Evasion in Amhara Region: Evidence from Selected Metropolitan Cities in the Region

Abstract This study is designed to investigate the causes for tax evasion in Amhara regional state evidencing Gondar, Bahirdar and Dessie city tax administrations. For the purpose of the study explanatory research designs along with descriptive research design was adopted and a quantitative research approaches was adopted. The study predominantly relied on primary source of data gathered through self-administered survey questionnaire distributed to sample taxpayers. Samples of 387 business income taxpayers were selected using proportionate stratified random sampling technique. Inferential statistical tools are used to analyze data collected through survey questionnaire with the help of Statistical Package for Social Scientists (SPSS) version 22.0. The finding of the study revealed that effectiveness of tax administration and trust in government have Negative and statistically significant influence on the level of tax evasion in the region. Taxpayer Attitude towards tax evasion and corruption in tax administration have Positive and statistically significant influence on the level of tax evasion in the region.