Determinants of Tax Evasion in Addis Ababa City Administration

Taxation is a primary means through which governments finance and run public services. Inability to collect sufficient taxes to cover public spending thus deters the government’s ability to provide necessary services important to the wellbeing of the society. Tax evasion and tax avoidance are the two best-known ways of keeping taxes away. Evasion is thus a wilful and purposeful violation of the tax law through concealing the source and the amount of income with the intent of paying less. Tax evasion has had an impact on public services and the accumulation of capital that influences yield and economic growth.