CHALLENGES AND OPPORTUNITIES OF ADOPTING E-TAX SYSTEM IN THE CASE OF ERCA (LTO)

Abstract

The study determine the challenges and opportunities of adopting E-Tax system in case of ERCA Large Tax Payers Office. Population of the study consist Ethiopian Revenue and Customs Authority LTO staff. The study was conducted based on the data gathered from Large Tax Payers Office staffs. The result of the study indicated that, the major challenges of ERCA faces in the adoption and development of E-Tax system are, lack of customer awareness, limitation in network infrastructure and internet related support services. The study identified operational and services benefits from adopting and developing of E-Tax system such as increase productivity, reduces paper work, reduce transaction cost, increase reliability and reducing errors. Among the different driving forces that initiate ERCA to adopt E-Tax system: Desire to improve the relationship with customers, Desire to build organizational reputation, Desire to keep tax payer information safely The study also indicated existing opportunities for the Authority realized service benefits like, facilitate development of new system, improve customer service, increase accessibility of tax payer services; the Authority should work together with other concerned bodies such as ethio-telecom, Ethiopian electric utility and so on to solve the challenges that hinders e-tax system.