Risk Based Tax Audit Practices in Ethiopia, Evidence from Western Addis Ababa Small Taxpayers Branch Office

Abstract

This study was study was designed to assess Practices of Risk Based Tax Audit in Western Addis Ababa Small Taxpayers Branch Office in Ethiopia To achieve the stated objectives descriptive research design with mixed research approach was adopted. The result of the study revealed that there was a significant problem of supporting the audit work by Information Technology, the tax audit evidence is not obtained from y third party. No difference in risk selection criteria’s for similar for Large, Medium and Small taxpayers, focusing on revenue collection than enhancing tax compliance, extensive application of comprehensive audit than risk based sample among others  The study recommends: adequate use of information Technology in selecting taxpayers based associated risks, emphasizing on spot/issue oriented audits, applying different selection criteria based on their nature, to focus on issue audit and to use third party audit evidence.

Keywords: Tax, Risk based Tax Audit, taxpayer selection, Third party information d information Technology

DOI: 10.7176/EJBM/12-28-06

Publication date:October 31^st 2020