Practices of Tax Administration Inaddis Ababa, Ethiopia: The Case of Akaki Kaliti Sub- City
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Date
2022-06-25
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A.A.U
Abstract
The purpose of this study was to assess practices of tax administration in Addis Ababa, Ethiopia: the case of Akaki kaliti sub- city. The research design was descriptive design. The research used both quantitative and qualitative approaches and both primary and secondary sources of data. The data collected from 162 employees' randomly selected through simple random sampling and 370 taxpayers selected. Additionally, 2 informants were selected for semi-structured interview through purposive sampling techniques.Tax collection practices the majority of employees' opinion the tax collection mechanism not effective. The finding indicates that the sub city was effective by preventing corruptions related issue. According to the employees’ perception the penalties imposed on taxpayers did not fair. The finding shows that taxpayers were not aware of the tax proclamation and regulations. Tax payers regularly did not declare their income on time. The revenue office has sufficient number of skilled man power. However, the results revealed that the sub city administration did not provide adequate training for the staffs. The most tax payers know why they pay tax. Most respondents disagreed some people do not pay tax honestly because they believe that large portion of collected money is not used to the public. The finding indicate that poor tax administration, low awareness, Institutional capacity of the office, lack of an Integrated Banking System were factors for tax effectiveness. The revenue office should outfit with cutting-edge technology and sufficient human resources. The sub city administration penalty should be strong, clear and consistent. The tax payer office should create a clear, simple, intelligible, transparent, and user-friendly administrative system for income tax laws and procedures Taxpayers had complained on service delivery system