CHALLENGES OF BUSINESS INCOME TAX ASSESSMENT AND COLLECTION: IN THE CASE OF OROMIA REVENUE AUTHORITY

Abstract

The study assessed the challenges of Business Income Tax Assessment and collection in Oromia Revenue Authority. There is fail of business income tax assessment and collection challenge identifies by the taxpayers. Due to this, non-existence of clear procedures for filling returns is not independently studied. The study employed descriptive research methodology and both qualitative and quantitative research approach were adopted for the study. To conduct the study the primary data were gathered from taxpayers and tax officers. The sampling technique employees both Random sampling and Stratified Sampling and questionnaires were distributed to 24 employees and 279 representative taxpayers. The study identified Challenges of procedure for filing and submitting returns, problem with the preparation of tax return and timely submitting, Challenges of tax compliance strategy, absence of adequate and well trained staff, problem with self-assessment by tax payers, tax education and difficulty in applying the tax law and regulation. The study identified problems like the Procedure of the business income tax became challenge to the tax assessment and collection , the tax authority and the tax payers are not complying voluntary tax strategies and that is reduce the tax performance and Business tax income assessment and collection is affected by tax audit practices and the tax audit is not effective. For better income tax assessment and collection, the authority should make the tax assessment procedure fair and be improved in making understandable, to make regular interaction with tax payers and providing training on business income tax laws and tax returns to create awareness and improve tax audit by submittal of timely returns and paying the provisional assessment willingly.