DETERMINANTS OF TAX AUDIT EFFECTIVENESS IN THE MINISTRY OF REVENUE EVIDENCE FROM LARGE TAXPAYER’S OFFICE.

Abstract

This paper aims to explore determinants of tax audit effectiveness in large taxpayer’s branch office. The study adopted an explanatory approach and mixed research method in order to test a series research hypothesis, where by data from 86 tax auditors, by using questionnaires’’ and semi structure interviews with tax audit head and team leaders. To achieve the objective of the study the researcher used Census method to select the survey respondents. The collected data were analyzed using both descriptive and inferential statistics. In the case of descriptive statistics, the study used frequency, percentage, mean and standard devotion, and the study used multiple regression analysis. With these research methods, the results of the study tell that tax audit effectiveness of large tax payer’s office is highly affected by audit quality of the department, top managements, audit attribute and the organizations independence. In the end, the study forwards the possible measures to be taken by the large taxpayer office to mitigate problems in tax audit operation. Finally, this paper recommends further research experimental analysis may draw different conclusions.