TAX ASSESSMENT AND COLLECTION PROBLEMS OF CATEGORY “A” MEDIUM TAXPAYERS A CASE OF ADDIS ABAB MEDIUM TAXPAYERS No. 2 BRANCH OFFICE

Abstract

Ethiopia, like any other developing countries, faces difficulty in raising revenue to the level required for the promotion of economic growth. Taxation has increased in importance not only as a tool of raising revenue for the traditional roles but also for accelerating the economic growth and ensuring social justice. The goal of this research is to study tax assessment and collection problems of category “A” medium taxpayers found in Addis Ababa medium taxpayers No. 2 branch office. To achieve this objective, the researchers used both primary and secondary sources to collect data. And also the researchers used probability and non probability sampling techniques. The information gathered witnessed that there exist inefficiency and insufficient number of tax office employees in Addis Ababa medium taxpayers’ No. 2 branch office. There is a big problem for system connection due to this many taxpayers does not get the service as they came to the tax office. Moreover, there is lack of tax knowledge by taxpayers. Due to this, delay in tax payment, do not pay the proper amount they should pay and negligence are taken by taxpayers as solution to escape from payment of taxes. To create effective and efficient employees, the tax office should offer continuous training for their employees by allocating enough money to training center. The tax office should employ or recruit sufficient number of employees to avoid work influences by one employee. For better tax administration, the authority should be put better technology which is the network system is fast, huge capability of storage and perform the work without any obstacle. To have effective tax collection the tax office should be solve the administration problems.