THE PRACTICE AND CHALLENGES OF TAX ASSESSMENT OF CATAGORIES “A” TAXPAYERS. A CASE OF AKAKI KALITY SUB CITY ADDIS ABABA CITY ADMINISTRATION

Abstract

The prevalence of poverty in developing countries like Ethiopia demands improvising internal revenue generating projects particularly the tax administration to reduce dependence on foreign aid and borrowing. The goal of this study is to investigate tax assessment practice and challenges with regard to categories “A” taxpayers found in Akaki Kality Sub city. Descriptive survey was employed. Questionnaire and interview were used to collected data from 50 tax auditors and seven Revenue Authority officials respectively. The result of the study revealed that the information gathered witnessed that there exist inefficiency and insufficient number of tax assessment officers in the Akaki Kality sub city administration and extensively used comprehensive types of audit. Due to this the audit coverage of the revenue authority was too low, cases were selected based on associated risk but not used the standard risk identification criteria as of BPR. The Authority was not performed the audit work in predetermined time. Generally, the revenue authority was not performing tax audit according to the standards. Key words