Browsing by Author "Fikirte Chebud"

Now showing 1 - 1 of 1
  • No Thumbnail Available
    Item
    Factors Affecting Tax Assessment For Import/Export Companies in Ethiopia
    (A.A.U, 2025-05-20) Fikirte Chebud; Temesgen Worku(PhD)
    The purpose of this study is to analyze the difficulties that import and export enterprises in Addis Ababa, Ethiopia encounter when it comes to tax assessment. The study focuses on the interaction between the complexity of regulations, the inefficiency of administrative processes, and the restrictions placed on foreign exchange. The data was gathered through structured questionnaires distributed to 110 respondents, which included managers, tax officers, and customs officials from five different enterprises and three different tax administration offices. The study design utilized was classified as quantitative. Based on the results of a multiple regression analysis, it was found that foreign exchange restrictions (β = 0.295, p = 0.039) emerged as the sole statistically significant predictor of tax assessment challenges. This finding highlights the significant impact that currency shortages and exchange rate volatility have on compliance and valuation accuracy. Regulatory complexity (β = 0.075, p = 0.476) and administrative inefficiency (β = 0.122, p = 0.325) exhibited positive but minor effects. Approximately sixty seven percent of the variance was explained by the model (R = 0.67), with the remaining 67% likely being contributed by unmeasured factors such as informal trade practices. However, Ethiopia's specific institutional and macroeconomic restrictions highlighted, despite the fact that the findings are consistent with worldwide literature. One of the recommendations is to prioritize reforms to the foreign exchange policy, to speed up the digitization of tax systems, and to personalize support for small and medium-sized enterprises (SMEs) in order to reduce operational bottlenecks. A competitive trade environment may be fostered in Addis Ababa with the help of this study, which provides policymakers and tax authorities with practical insights that can be used to improve compliance, reduce revenue leakages, and enhance compliance.