Tax Assessment and Collection Enforcement Challenges: The Case of Ethiopian Ministry Of Revenues, Medium Tax Payers Branch Office

Abstract

The goal of this research is to investigate tax assessment and collection enforcement challenges in the Ministry of Revenue, medium taxpayer’s branch office were the target population of the study. So this research paper was designed in such way that enables the researcher to study problem more easily and clearly using quantitative and qualitative methods. It is structured to provide relevant information, both quantitative and qualitative, to sufficient level that would be essential for further processing. The data collected from the taxpayers’ and tax officers were the main sources of data for the study. In this regard, a total of 412 taxpayers and staff have participated in the study as a source of information and to conduct the study, the researcher used random sampling techniques. From random sampling technique, simple random sampling technique used to select taxpayer respondents. In addition, the researcher interviewed senior tax officers to support and checkup the reliability of the data collected using survey method. Descriptive statistics such as percentages, frequency, were used to summarize the study findings and present the results. Generally, findings of the study revealed that most of the taxpayers do not have the required knowledge of tax assessment and collection procedures as well as the rules and regulation of the government. Besides, taxpayers do not get updated information and essential training. In addition to this, the number of staffs who are supporting in the tax assessment and collection department are insufficient and inefficient comparing to the number of taxpayers in the branch office. Moreover, skill gap (lack of adequate skill) and low motivated tax assessor and collectors are also mentioned as of the part of the finding. Due to this and other reasons mentioned in the analysis; negligence, delay in tax payment and evasion are taken by taxpayers as solution to escape from payment. Thus, it is recommended that the branch office (the tax authority) should provide sufficient training for both taxpayers and staffs, promote transparency, and introduce modern IT technology and strengthening legal enforcement.