CHALLENGES AND OPPORTUNITIES OF E-TAX SYSTEM IN MINISTRY OF REVENUE: THE CASE OF MEDIUM TAX PAYERS’ BRANCH OFFICE

Abstract

The purpose of this study was to assess the challenges and opportunities of e-tax system in ministry of revenue: the case of medium taxpayers. The study used descriptive research design and a mixed research approach was adopted; target population of the study was 3,785 e-tax payers and 2 e-tax system supervisors. Based on this 349 questionnaires were distributed and 275 was returned and also un-structured interview was conducted with 2 higher e-tax systems supervisors to do this, a questionnaire was administered and analyzed using structured questions by convenience non-probable sampling method. The quantitative data were analysed using descriptive statistics methods including mean, frequency, percentage and standard deviation. The finding of this research undertaking revealed that e-tax filing system promote the taxpayers satisfaction and save time and cost, avoiding emotional stress due to long queue and make them efficient and effective as they can administer their own taxes and create flexibility to timely recording taxes returns at any time. The study also showed that the lack of using the local language cost of implementation, power interruption, and doesn’t allow corrections after the submission of the report and taxpayer still forced to go to tax authority are the main challenges of e-tax system. The study recommended that tax authority improve the excellence of the system fully implement electronically registration and clearance service and also the system allow correction after submit the report.