Assessment of tax audit practices and its challenge (A case study in Ministry of Revenues Eastern Addis Ababa small tax payer’s branch office)
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Date
2024-06-09
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A.A.U
Abstract
The purpose of the study is to determine the tax audit practice and its challenges in ministry of revenue: The Case of Eastern Addis Ababa Small Taxpayers’ Branch Office. The study used descriptive research design. To achieve the objective, the mixed research approach was employed and data was collected from 76 tax auditors and tax officials. Questionnaire and in-depth interview was used to collect the data. The researcher used descriptive statistical analysis in order to analyze the collected data. According to the study result comprehensive audit conducted extensively, the audit selection method is based on tax evasion and avoidance, risk associated with tax payers, tax payer’s history associated with penalty and refunds. Tax auditors lacked proficiency and competency. Moreover, the study also found that, tax evasion and avoidance, low tax auditor capacity, tax auditors’ ethical problem were identified as major Challenges of tax audit in Eastern Addis Ababa small taxpayers branch office. Lastly it is suggested that the revenue office should modernize the tax audit practice by implementing all types of tax audit techniques and methodologies, audit files within reasonable time, support audit case selection by system, build proficiency and competency and ethics of tax auditors by establishing organized center and invest on announcing and educating taxpayers to minimize tax evasion and avoidance. Finally, a due attention should be given to tax audit practices and its challenges by the tax office in order to adequately bring taxpayers compliance and collect the amount of revenue from small taxpayers consistently in the branch office.