Hello,
The correct code can be either of the following:
1. ( i_taxnum IS INITIAL ) AND ( i_taxtype NE space ).
2. ( i_taxnum IS INITIAL ) AND ( i_taxtype IS NOT INITIAL).
'IS' Comes with Keywords 'INITIAL' and 'NOT INITIAL' but IS can not be used when you are comparing two variable using an operator (i_taxtype IS NE space).
Mind you SPACE is not a keyword in ABAP it is a variable with type CHAR1 and value = BLANK and NE is an operator.
Hope it helps.
Regards,
Ajeet Dixit.