Assessment of tax audit practice in Ethiopia The case of Ministry of Revenue East Addis Ababa Branch Office
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Date
2024-05-25
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A.A.U
Abstract
The study's goal was to assess the Ministry of Revenue's tax audit practice: The Case of the
Eastern Addis Ababa Small Taxpayers' Branch Office. Descriptive research design was adopted in
the study. Using a combined research approach, information was gathered from all 80 tax auditors
in order to meet the goal. Data was gathered via an in-depth interview and a questionnaire.
Descriptive statistical analysis was employed by the researcher to examine the information
gathered. This study uses a sample size of 80 tax auditors to examine the difficulties and efficacy
of tax audits in a particular setting. The study sought to determine the standards by which tax
audit cases are chosen, investigate the usage of tax automation, and evaluate the expertise of tax
auditors. The results provide some important new insights. First off, most respondents questioned
the competence of tax auditors, raising issues with the selection of suitable and knowledgeable
officers, the effectiveness of the tax audit handbook, and the amount of training offered.. Second,
although all respondents agreed that tax automation improved revenue collection and compliance,
several expressed concerns about the current auditors' lack of training in using automation
software. Furthermore, the participants emphasized obstacles including network malfunctions,
problems with the quality of data, and opposition from auditors that impeded the effective
execution of tax automation. Even though SIGTAS tax automation supports the audit selection
process, the data entered into the system is not accurate or dependable enough to be used
efficiently. Several recommendations are made in light of these findings, including strengthening
tax auditor competency through extensive training programs, guaranteeing sufficient funding for
tax audits, advancing the use of tax automation through technological support and training, and
developing transparent and unambiguous standards for choosing tax audit cases. These
recommendations aim to improve the effectiveness and efficiency of tax audits, enhance tax
compliance, and increase revenue collection