Browsing by Author "Serkalem Assefa"

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    Incentives to Compliant Taxpayers Under Ethiopian Tax Laws: Legal and Practical Analysis
    (Addis Ababa University, 2025-05-01) Serkalem Assefa; Achalewu Ashagire
    This paper critically examines whether the tax laws currently in place in Ethiopia incentivize compliant taxpayers, analyzing both their legal framework and practical implementation. Although tax compliance is vital for increasing domestic revenue and promoting national development, incentivizing compliance through granting positive rewards is a relatively underexplored area in Ethiopia. The current legal regime in Ethiopia including the Federal Income tax, Federal Tax Administration Proclamations, Customs proclamation, and Excise Tax Proclamation demonstrated to be inadequate to effectively incentivize compliant taxpayers. These regulations don’t provide a framework that addresses incentives for compliant taxpayers to promote voluntary compliance. Through doctrinal legal analysis and practical evaluation supported by questioner and interview with stakeholders, the research identifies the absence of detailed provisions and a coherent enforcement mechanism undermines the effectiveness of compliant taxpayers’ incentive scheme. To address these gaps, the author recommends that Ethiopia shall re assess its tax law legal framework to ensure that tax compliance is not only enforced but also rewarded in a meaning full manner with a view to promote voluntary tax compliance which will reduce the cost of tax administration