FACTORS AFFECTING TAX COLLECTION: CATEGORY "A" AND "B" TAX PAYERS IN WOLDIA CITY ADMINISTRATION TAX OFFICE

ABSTRACT

Tax is the major revenues to the government in developed and developing countries. Thus many professionals and authorities strive to enhance the level of tax revenues and make tax revenues significant portion of annual national budget. This study conducted to identify factor affecting tax .Tax compliance, tax evasion, Tax payers „awareness and tax office capacity were considered as a factors of affecting tax collection in empirical testing. The study used explanatory research design and mixed research approach employed. Data gathered from primary and secondary sources. The primary data obtained by interview and questionnaire. The survey is conducted on category A and category B taxpayers of Woldia city administration. The secondary data collected from reports and manuals of Woldia city administration. Data analyzed with descriptive statistics such as frequencies, percentages, mean and standard deviation through statistical tool of SPSS version 23. The data presented in tables and histograms. In addition, these regression analyses employed to analyze the relationship of variables. The findings show tax collection affected by tax evasion, tax payer"s awareness tax office capacity and also tax compliance and the regression analysis show that tax evasion, tax Payer"s awareness, tax compliance and tax office capacity have has strong negative relation with tax collection. This Paper recommended that, the tax office should capacitate in both of human power and technology, so that strengthen auditing work, enhance taxpayer"s awareness.