Assessment of Tax Audit on Tax Compliance and Revenue in Ethiopian Revenue and Customs Authority (The Case of East Addis Ababa Branch Office)
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Date
2019-11
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A.A.U.
Abstract
Low tax compliance and revenue limit the capacity of government to raise revenue for developmental purposes because the higher the revenue, the more likely government will put in place developmental plans for the enhancement of the living standard of the people. Based on this, the study examined the effects of tax audit on tax compliance and revenue of tax revenue in in ERCA east Addis Ababa branch office. It specifically investigated the effect of comprehensive audit, issue audit, back duty audit and de-registration audit on tax compliance and revenue of tax revenue in ERCA east Addis Ababa Branch office. A close-ended questionnaire was used to gather the needed data and an analysis was carried out through correlation matrix and multiple regression. It was discovered that desk audit, field audit, back duty audit and registration audit had a positive significant effect on tax compliance and revenue in ERCA east Addis Ababa Branch office with the p-value of 0.001, 0.000, 0.000 and 0.000 respectively. Worthy of note was that field audit was the most significant predictor out of all the predictor variables. It was concluded that tax audit could engender tax compliance and revenue in east Addis Ababa branch office. It was therefore recommended that east Addis Ababa Branch office should intensify tax audit through the employment of more competent staffs and intermittent training in order to increase in tax compliance level in the branch office. Also, Audited files that reveal criminal act should not be taken slightly and tax evaders and avoiders should be seriously dealt with to deter others from plodding the same criminal path.
Description
A Thesis Submitted to Addis Ababa University Department of Accounting and Finance in Partial Fulfillment of the Requirement for the award of the Degree in Master of Science Program in Accounting and Finance
Keywords
Tax, Tax Audit, Tax Compliance