Abstract:

Tax is very important in any country around the world. Since revenue collected from taxes enables a country to provide services to its citizens and for developmental progress as well. This study is about the effect of taxpayers’ awareness on tax compliance of PBSs in the Banadir region and carried out with the scope of May 2018 to March 2019. The variables used in the study was the level of taxpayers’ knowledge and tax law. While the study was explanatory research design the target population of 250 from the private business sector within the Banadir region. Data collected by administered questionnaire and were analyzed in descriptive statistics using statistical package for social science (SPSS20.0) and is presented in form of the frequency distribution of tables. It was also found a Correlation coefficient of a positive moderate degree of 0.637 and independent variables have enough explanations for the dependent variable with R2 of 87% Thus, the study recommends there was a need for effective taxpayers’ awareness programs to improve tax compliance. Also, to reduce corruption, improve accountability, and establish effective independent revenue authority.