Assessment of Tax Collection System and Its Challenges on Category ‘C’ Tax Payers (The Case of Nekemte Town)

Abstract

The study was designed to assess tax collection system and its challenges on category ‘C’ tax payers in Nekemte town. The problems identified were the tax collection problems related to tax office and tax payers. The data was collected from 15 tax office employees and 70 tax payers using questionnaires and analyzed using the descriptive tools. The finding shows that The study indicated that lack of awareness creation programs for taxpayers, failure of most of the taxpayers to maintain books of account to control their operations, lack of adequately qualified personnel, lack of objective tax estimation procedures and the resultant tax under- and over-statement, lack of taxpayers awareness about tax procedures and calculations are some of the major problems on category “C” tax assessment and collection of we believe this problems will be simplified if not eliminated. The study recommended that the tax office has to deploy reasonably adequate personnel both in terms of number and experience. Furthermore, the provision of appropriate training to these personnel has to be reinforced. Functions such as tax assessment, collection, awareness creation, providing information, and enforcement has to performed effectively and efficiently, so that the tax office would stand strong and powerful.

Keywords: Tax, Taxation collection system, Tax assessment, Challenges, Tax payers, Tax collectors,

Category C

DOI: 10.7176/RJFA/10-15-01

Publication date: August 31^st 2019