May 14, 2025 Journal article Open Access

Mengesha Tadesse Mengistu

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{
  "DOI": "10.20372/nadre:6905", 
  "author": [
    {
      "family": "Mengesha Tadesse Mengistu"
    }
  ], 
  "issued": {
    "date-parts": [
      [
        2025, 
        5, 
        14
      ]
    ]
  }, 
  "abstract": "<p>The major objective of this study was to assess the challenges and practices of tax audit in Fitche Town Revenue Bureau. The study employed mixed research method where survey design and in-depth interviews were employed. Survey was conducted with selected taxpayers and tax auditors working at Fitche Town Revenue Bureau. Actual sample size achieved was 260 for taxpayers&#39; survey and 33 for tax auditors survey. In addition in-depth interviews were conducted with managers and Tax Auditors Coordinator of Fitche Town Revenue Bureau. Results of the study reveal that the practices to achieve ultimate Goals of Tax Audit was found at moderate level; Tax Auditors of the Office do not make sufficient efforts to create Taxpayers&rsquo; awareness; they usually focus on gathering and collecting information on health of the Tax system including compliance behavior of the Taxpayers, the Office did not proportionally focus on all types of Tax Audit techniques; most of the time Tax Audit activities were done without schedules, and carried out arbitrarily. Overall the practices of Tax audit at Fitche Town Revenue Bureau was poorly practiced. The finding further indicated that, majority of Tax Auditors were assigned to their current jobs through internal promotion; the number of newly employed Tax Auditors accounts only 6.06% of all Tax Auditors; they did not attended training programs related to their current job during the past two years of their services at the Office. Yet, the results of this study revealed that, there is no well-established strategies that make Tax Auditors competent and efficient on their job through training on continuous bases. As a result, proficiency and competency level of Tax Auditors&rsquo; was found at moderate levels. Concerning challenges that influence the practices of Tax Audit; factors related with Absences of reliable and up-to-date data and records keeping among Taxpayers; Traditions of Corruption: Request for informal payments to get things done in the course of Tax assessment and Tax audit; In adequacy of resource and facilities; Taxpayers were consider illegal business practices as best way of doing business; Not properly responding the compliance of Taxpayers on time by Fitche town Revenue Bureau; and Negative attitude towards taxpaying practices among Taxpayers of the town engaged on Tax audit related responsibilities were identified as the most sever challenges. Key recommendations of the study include: offering training; assigning competent Tax Auditors, integrating sector offices&rsquo; efforts, developing and using annual schedule of auditing for Taxpayers business firm, and arranging annual forum.</p>", 
  "title": "CHALLENGES AND PRACTICES OF TAX AUDIT IN NORTH SHOA  ZONE FITCHE TOWN  REVENUE BUREAU", 
  "type": "article-journal", 
  "id": "6905"
}