| Abstract: | This paper seeks to explore the effect of Tax audit in promoting tax revenues
growth in Ethiopia in the broader perspective. Survey questionnaires as primary
data collection instruments were distributed to selected audit officers and some
management members of Ethiopian Revenue & Customs Authority equalling to 120
staff and followed by descriptive research design and Secondary data included reports
from Ethiopian Revenue & Customs Authority, Large Tax Payer Office from 2002 to
2007 EC and followed by analysis of SPSS software. The results of this research work
indicate that, even if the practices of Tax audit are prerequisite for growth of
Governments revenue, but the case of ERCA,,LTOs relationship between Amount
before audit & Amount after audit is not Statistically significant. This doesn’t mean
that they really don’t have correlation; rather it implies that the strength of the
relationship is not significant or strong. In conclusion, weaker trend in awareness
raising activity for tax payers, Manual based Tax Auditing system and high turnover
of experienced tax auditors due was considered as findings in the areas of the Tax
Audit activity, which have direct impact on reduction of Tax revenue. The result of
this research shows that further studies are needed by maximizing the population
including other branches and it has also have the potential to contribute theoretically to
public finance but also to the area of institutional performance. |
