The Challenge of Concurrent Tax Collection and Administration in Case of Oromiya Revenue Authority
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Date
2019-06
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Publisher
A.A.U.
Abstract
Proper tax collection and administration were one of the impetuses to bring
socio-economic transformation in any country. For this end, countries put in
place different system. Nonetheless, their effort faces many challenges. At federal
level it is the federal parliament which is responsible for levying taxes assigned to
the federal government (Art. 51). Regional State Taxation Powers Taxation power
of the regional states within their jurisdiction. Federal government and states all
collect taxes and shall share revenue taking the federal government into account
(Art.95). Article 98 lists concurrent powers of taxation as follows: profit, sales,
exercise, and personal taxes on enterprises they jointly establish; taxes on the
profits of companies and individuals to shareholders; taxes on the incomes of
derived from large-scale mining and all petroleum and gas operations. In
general, the division of revenue-raising power in Ethiopia is mainly structured
according to the categories of taxpayers or particular things as a source of
revenue. The exclusive domain of each government is not the tax base but the tax
source. The concurrent tax collection by the federal government and Oromiya
Regional Government and major challenges in the process. The research uses
descriptive research approach and the data is collected using questionnaires,
interviews and focus group discussion. The data collected from the survey
questionnaires were analyzed by using descriptive statistics, including mean,
frequencies and percentages. The result shows that the regional state in the case
Oromiya is losing its due share due to a tax base pattern instead of Tax source.
Dangote is a good example of this sorry saga, it is large taxpayer in the country
but due to is tax center based in Addis Ababa being sourced from Oromiya ,
Oromiya is losing a great deal of income every fiscal year. No system was
established to tackle this and the Federal Government and the Oromiya regional
state did not take any corrective measure over the last fifteen years intentionally
or negligently. There was no any promulgation of guideline or policy that compel
individual or company has to pay its profit tax in area where it investing not in
area where its tax center based.
Description
A research paper submitted to the post
Graduate office
For partial fulfillment of the requirement of
Accounting and auditing (MSC.)
Keywords
Concurrent tax, Tax Administration, Tax collection