TAX ASSESSMENT AND COLLECTION PROBLEMS OF CATEGORY “A” TAX PAYERS: -THE CASE OF LIDETA SUB-CITY REVENUES AND CUSTOMS AUTHORITY BRANCH OFFICE

Abstract

Ethiopia face problems in increasing revenue to the level required for the advancement of economic development. Taxation has increased in importance not only as a tool of rising revenue for the traditional roles but also for fast-tracking the financial progress and safeguarding community fairness. The researches assess the tax assessment and collection problems in lideta branch office. The research used descriptive research design and both qualitative and quantitative research approach were adopted for the study. To bearing the research primary data were gathered from representative taxpayers and tax officers. A total of 100 questioners were distributed for 20 tax employees and 80 sample taxpayers. The research found that tax assessment method and its processes are not clear and assessments of tax are subjective, tax administration system are not effective; complex tax rules and regulations, poor tax procedures, lack of honesty and integrity, corruption and tax evasion. Therefore, the study suggests that the tax authority should spread effective tax assessment and collection process, employed advanced computerized systems, creating continuous awareness and give training both for tax payers and tax office employee, make the tax procedures effective. In general, the tax authority should try to ensure clear, transparent and consistent tax assessment and collection procedures so as to encourage voluntary tax payers.