Assessment of Real Property Valuation Practice and Taxation in Addis Ababa: The Case of Lemi Kura Sub city Administration
No Thumbnail Available
Date
2023-04
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
Tax is vulnerable to fraud, which has become a concern of many countries in the world. Tax fraud is a deliberate misrepresenting of the real property valuation to the tax authorities to reduce their property tax liability. Therefore, the study aimed to assess real property valuation practice and taxation in Addis Ababa: The case of Lemi Kura Sub city Administration using cross-sectional data from tax auditors, property valuators and private property owners a sample of (52 tax audits, 6 property valuators and 196 private property owners) respondents. The data generated to meet these objectives were collected via closed-ended structured questionnaires. Data were collected using structured questionnaires. To realize the research objectives explanatory analysis method was employed using SPSS version 26. The research found that the tax collection performance and tax compliance challenge was the real property owners was evade their tax amount, 51.9 percent tax auditors are believed that their property tax collection status was measured in medium status, 66.7 percent firms was measured there company real property valuation accuracy was poor. more than half real property valuators were believed that the government tax system and tax rate is convenient for private property tax payers, 55.8 percent tax auditors was not believed that the government has a tax system that is convenient for private property tax payers and 57.7 percent private property owners in sampled sub city was considered the government has a tax system that is not convenient for tax payers. This result indicated that most of tax office employees and private property owners were never trusted the government system about property tax, 71.2 percent tax auditors believed that property owners in the sub city was not report actual building cost during valuation report, 65.4 percent tax auditors believed that the current valuators on the industry are not following a standard valuation practice for valuating a real property, 34.6 percent tax auditors and 48 percent consultancy firms were believed that stamp duty tax are more cost effective and effective, 82.7 percent tax auditors believed that property owners have influence on property valuation outcomes when valuated by valuators, 75 percent tax auditors believed that there is a strong relationship between property valuation and taxation and majority 80.8 percent tax auditors believed that inaccurate property value affect taxation base in the sub city. The city administration should take action to enforcement the real property valuation accuracy procedure and federal state reform the revenue collector’s office staff, property tax system and property tax low
Description
Keywords
Property tax