| Abstract: | The main objective of this study is to assess the problems of tax assessment and collection in category “A” taxpayers in Lideta Sub City. The research design employed in the study was descriptive survey study on 133 sample tax payers from 3253 target population. In addition, the researcher used in-depth interview with management bodies. The study was used primary and secondary type of data which were collected through tax payers’ survey questionnaire. The study was based on descriptive analysis. The findings of the study revealed that most taxpayers lack sufficient knowledge of tax assessment and collection Procedures, rules and regulations. There is lack of clear, transparent and up-to-date information and training. Moreover, tax assessment and collection officers are in efficient and insufficient in relation to number of tax payers in the sub city, tax officers are non-motivated, lack adequate skills. Due to this and other factors mentioned in the analysis of this study, negligence, delay in tax payment and evasion are taken by taxpayers as solution to escape from payment. This study suggests that the tax authority should provide continuous training both for tax payers and tax office employees, use advanced information technology, make the collection procedures simple and transparent, and strengthen legal enforcement and penalties. In general, the tax authority should try to ensure tax fairness and equity so as to encourage voluntary and on time tax payment. |
