| Abstract: | Tax is a compulsory payment and a personal obligation to the government without expectation of direct return or benefit to tax payers. Tax administration basically consists of sets of rules and regulations guiding the tax authority to discharge its responsibilities in the implementation of the tax policy. Yeka sub city Revenue and Customs Authority is delegated to assess and collect both
direct and indirect taxes from Category “A” and “B” taxpayers who are performing different types of business activities in thirteen Weredasbased on the tax proclamation No 286/2002 and
Addis Ababa city government charter proclamation No 311/2003.The main objective of Yeka sub city Revenue and Custom office is to establish modern revenue assessment and collection system, and provide equitable, effective and efficient and quality service to tax payers and encourages voluntary compliance of the tax obligation and implementing applicable tax laws.
The objective of this study is to assess the business profit tax administration at Yeka sub city revenue and Customs Authority“with regard to Category “A” and “B” taxpayers and to identify the challenges. To achieve this objective, a descriptive survey was used and both primary and secondary source of data was adopted. Both mixed method research approach questionnaire were used to assess and answer the research questions. The questionnaire was administered for 371 tax payers and for 18 employees of the tax administration. According to the response obtained from the questionnaire it is concluded that Yeka sub city tax administration is not efficient and effective in various aspects. Such as: customer service, tax assessment and collection procedures, enforcing the tax law, tax payer complaint handling and response, providing awareness and information regarding tax. Due to these factors it was identified that voluntary tax compliance of the tax payer at Yeka sub city is very low.It is recommended that the tax authority should adopt a service-oriented attitude towards taxpayers and the tax payer must be treated with respect, honesty and trustworthy. The tax administration needs to strengthen itself and the employees should be capacitated with customer service oriented training and an understanding of the entire system of tax administration. In addition to this, the authority should make the tax law and procedures simple, understandable, and transparent. Sustainable awareness creation programs and maintains good working relationships with the tax payers and
viii consistently deliversup-to-date information and treat inquiries, requests and appeals in an
accurate and timely fashion. |
