ASSESSMENT OF TAX AUDIT PRACTICE OF MINISTRY OF REVENUES EASTERN ADDIS ABABA SMALL TAX PAYERS BRANCH OFFICE

Abstract

Tax audit is an activity or a set of activities performed by Tax auditors to determine at taxpayer’s correct tax liabilities for a particular accounting or tax period. The aim of the study is to assess tax audit practice of ministry of revenues Eastern Addis Ababa small tax payers’ branch office. The Research methodology a researcher followed both qualitative and quantitative research method. Because, the target population to be studied is small. In eastern Addis Ababa small tax payer’s office there are 76 tax auditors supervised and lead by 10 team leaders managed by two process owners. The data collected from all parts of the tax audit department through interview and questionnaires. The researcher addressed 76 questionnaires and only 72 questionnaires were returned. The data is analyzed based on descriptive method. The findings from the study results that the non-compliance behavior of the tax payer is due to interest of evading and fraud of the tax liability. The tax payers are not cooperate to give essential information to the tax auditor. In addition, the tax audit programm strength and weakness is not evaluated. Some of the recommendations from the findings are the MOREASTO deliberately considering in creating awareness on the tax payers and assign a qualified tax auditor for the inefficient human resources. In addition, the tax administer revises the tax policy.