Abstract:
Based on this, the study examined the effects of tax audit on tax compliance and revenue of tax
revenue in Oromia West shoa zone revenue authority, Ambo City Administration and woreda
office. It specifically investigated the effect of comprehensive audit, issue audit, back duty audit
and de-registration audit on tax compliance and revenue of tax revenue in OromiaWest sho'a
zone revenue authority, Ambo City Administration and woreda office. A close-ended
questionnaire was used to gather the needed data and an analysis was carried out through
correlation matrix and multiple regressions. It was discovered that Comprehensive audit, Issue
Audit, back duty audit and de-registration audit had a positive significant effect on tax
compliance and revenue in West sho'a zone revenue authority, Ambo City Administration and
woreda office with the p-value of 0.000, 0.014, 0.000 and 0.000 respectively. Worthy of note was
that De-registration audit was the most significant predictor out of all the predictor variables. It
was concluded that tax audit could engender tax compliance and revenue in West sho'a zone
revenue authority, Ambo City Administration and woreda office. It was therefore recommended
that West sho'a zone revenue authority, Ambo City Administration and woreda revenue office
should intensify tax audit through the employment of more competent staffs and intermittent
training in order to increase in tax compliance level in the branch office. Also, Audited files that
reveal criminal act should not be taken slightly and tax evaders and avoiders should be seriously
dealt with to deter others from plodding the same criminal path.
