Assessment Of Business Income Tax Revenue Collection Performance And Its Challenges In Burayu City Adminstration: The Case Of Category “A” Taxpayers

Abstract

The major objective of this study was to examine the business income tax revenue collection performance and its challenges the case of Burayu City administration the case of “A” tax payers. The study has four research objectives. A descriptive research design was adopted. The study populations were Burayu City Administration Revenue Authority Tax official and Category “A” tax payers of the city administration. A purpose sampling method was employed in order to select the respective sample size from the city’s tax official revenue authority and a simple random sampling method was used for the tax payers sample size selection. Both primary and secondary sources of data were been used in this study. The primary was collected through questionnaire while the secondary data were collected from the archival records of Burayu City Administration Revenue Authority for the period spanning from 2008 E.C.-2013 E.C. In order to undertake the statistical analysis, excel and SPSS soft wares used as an analysis tool. A descriptive statistics like percentage employed for analysis purpose and the analysis results were presented in the form of tables, pie charts and graphs. The finding have shown the tax revenue of the case city to a major extent is derived from category “A” tax payers. Besides, the contributing factors for the low level of voluntary compliance by the tax payers is attributable to lack of awareness, poor collection enforcement, ability, carelessness and intentional. The obstacles for category “A” tax payers to comply with the tax law and regulation is associated with employees incapability, weak audit program, partiality, tax payers know how about tax and services being delivered by the city’s revenue authority’s from a range of factors view point. Then based on the findings obtained it is suggested that the city’s administration need to give more attention to category “A” tax payers of it parallel to other tax payers, provide periodic capacity building trainings to its employees, improve its audit program and improve or create smooth relationship with its tax payers and improve its service delivery practice. Further, there is a need too to conduct awareness creation campaigns and provide related timely trainings to the tax paying community under its administration.