Abstract:
The main objective of this study aimed to assesses the Effectiveness of Tax Administration and
Its
Implementation System on Category “C” Tax Payers: The Case of Holeta Town
Administration Revenue Office. The target population of the study included tax payers and
employees of the office with 100 tax payers and 47 employees. In order to address Descriptive
type of research design was applied the research questions, qualitative and quantitative research
approaches were employed. The analysis of data found that the major factors influencing the
Effectiveness of Tax Administration and Its Implementation are Tax Payers „Education,
Taxpayer Identification and Registration, Challenges to Tax Administration, Political Factors,
Economic Factors and Social factors. The researcher used both primary and secondary sources of
data. In order to get primary information, questionnaire and interview were employed. As
important as the primary data, the researcher also collected essential data from secondary
sources. Non-probability technique which is convenience sampling was utilized to select sample
tax payers and purposive sampling method was used to select sample employees. Data also
analyzed on quantitative basis using Cronbach's Alpha, multiple regression analysis, Mean and
descriptive statistics. Based on the analysis and discussion of the research, it can be concluded
that the Tax rules and regulations, the Effect of Presumptive Tax Assessment Procedure,
Competency of Office Personnel and Problems Encountered during Assessment on Effectiveness
of Tax Administration.
