MEASURING CUSTOMERS PERCEPTION TOWARDS ELECTRONIC TAX FILING SYSTEM IN ETHIOPIA: THE CASE OF LARGE TAX PAYER OFFICE AT ADDIS ABABA CITY ADMINISTRATION

Abstract

The study is titled “measuring customer perception towards electronic tax filing system in Ethiopia (the case of large tax payer office in Addis Ababa city administration)”. The objective of this study was to assess factors that influence large tax payers‟ perception towards intention to use electronic tax filing system in Ethiopia (the case of large tax payer office in Addis Ababa city administration). This study used conveniences sampling technique and 13.4% or142 sample size taken from a total of 1,152 large tax payers, those electronic tax filing system users. To achieve its objectives, descriptive analysis, chi-square test, correlation test by spearman, covariance result and ordinal logistic regression model were applied in the study. This research aims at extending the Technology Adoption Model (TAM) to incorporate the role of factors in influencing customer‟s perception towards to intention to use electronic tax filing system. Furthermore, Technology acceptance model (TAM) is used to examine the above perception with the new construct „perceived computer self-efficacy‟ and „perceived risk‟ along with TAM two beliefs; perceived ease of use and perceived usefulness. Thus, generally agreed that computer self-efficacy and risk construct is also their concern while using electronic tax filing system. The results of the study strongly support the adopted TAM in predicting the behavioral intention of large taxpayers‟ to use electronic tax filing system. Perceived easy to use, perceived usefulness, perceived computer self-efficacy and perceived risk was significant factors that influence intention to use electronic tax filing system. However, computer self-efficacy was strongly predictor factors than perceived easy to use, usefulness and risk, those (β=0.43, 0.22, 0.16 and 0.10) regression coefficient respectively. The research model pseudo % explains over half of the variance of the behavioral intention to use electronic tax filing system by ease to use, usefulness, risk and computer self-efficacy. Eventhougth, the unexplained 28.9 % of variance suggested that the model may have excluded other possible factors influencing intention of electronic tax-filing system. However, the findings suggest that large tax payer office should take attention to computer gap of customers and create system secure and electronic tax filing system expand to all tax payers‟ level. Finally, based on the findings of this survey, limitations for electronic tax filing system that could be addressed in future studies.