BENEFITS AND CHALLENGES OF ELECTRONIC TAX FILING SYSTEM IN MINISTRY OF REVENUES MEDIUM TAX PAYERS(MERKATO BRANCH OFFICE)

Abstract

This research aimed to investigate the benefits & practical challenges of e-filing medium tax payers in Ethiopia. To achieve this objective, descriptive study carried on produced information by using a Liker scales questionnaire from Ethiopian Ministry of Revenue medium Tax payers, 100 respondents used convenience sampling technique. Data analysis was carried out using descriptive analysis. The finding revealed that e-tax filling system promote the tax payers satisfaction and saved time cost by 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 tax credit and to refund tax any time .The study also indicate that some of the practical challenge faces while using e-filling are; unreliable e-filing service, system inefficiency as it isn‘t fully operational and the e- filing is not also very well supported with e- payment supplementary system , so taxpayer still forced to go to tax office. The Study recommended that tax authority increase the excellence of system fully lunched by provide electrically registration, clearance and payment system.