OPPORTUNITIES AND CHALLENGES OF E-TAX SYSTEM IN MINISTRY OF REVENUE: THE CASE OF LARGE TAXPAYERS’ BRANCH OFFICE

Abstract

The study aims to investigate the opportunities and challenges of the e-tax system implementation in the Ministry of Revenue of Ethiopia, focusing on the large taxpayer branch office. The research employed a descriptive research design, adopting a qualitative-methods approach. Both primary and secondary data were collected. The primary data was gathered through questionnaires distributed to large taxpayers and tax officers in the Ministry of Revenue. The secondary data was obtained from relevant documents and literature. The key findings suggest that the e-tax system has brought several opportunities, including convenience, cost savings, faster processing, enhanced data security, and improved tax compliance. However, the implementation has also faced challenges such as system risks, complexity, high investment costs, and lack of taxpayer awareness. The study recommends that the MOR should enhance system reliability, provide continuous taxpayer training, and improve the overall e-tax infrastructure to address the identified challenges. Additionally, the ministry should continue to promote the benefits of the e-tax system to encourage wider adoption among large taxpayers. The research contributes to the understanding of the opportunities and challenges associated with the implementation of e-tax systems in developing countries, particularly in the context of the Ethiopian tax administration. The findings and recommendations can inform policymakers and tax authorities in similar contexts to develop strategies for effective e-tax system implementation and promote voluntary tax compliance.