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
