Assessment Of Business Income Tax Collection: Incase Of Ministry Of Revenues North West Addis Ababa Tax Payers Branch Office

Abstract

This study was conducted to identify the factors affect business income tax collection at Ministry of revenues North West Addis Ababa taxpayers’ branch office. So Taxation was a system of raising government revenue which is collected from the citizen to finance government expenditure. In order to assess factors that affect business income tax collection at Ministry of revenues North West Addis Ababa taxpayers branch office, this research paper used descriptive type of research design and used both primary and secondary data. The primary data were collected through questionnaires from 96 taxpayers of North West tax collector branch office and semi-structured interview with 7 tax officials. Secondary data were collected from annual report. Also research approaches both qualitative and quantitative method and random sampling technique to selected 96 samples from the total population of 2450; and purposive sampling to select 7 respondents from tax officials to get relevant information. Data analyzed with disruptive statistics such as frequency, percentage and the data presented in tables and charts. Based on the interviews and questionnaires result, the researched identified that business income taxpayer’s Low level of awareness, unwillingness to pay tax liability on time and poor bookkeeping knowledge affected business income tax collection at Ministry of revenues North West Addis Ababa taxpayers’ branch office. In order to overcome these factors that tax collector branch office should change the tax payer’s feeling towards taxation through sustainable awareness creation program, make taxpayers to understand tax rules and regulations and enhance business income tax collection through electronic tax filing system