TITL: RESEARCH PROPOSAL ON

ASSESSMENT OF TAX COLLECTION

PROBLEM UNDER CATEGORY “C“IN CASE
OF DIRE DAWA REVENUE AUTHORITY.

PREPARED BY; MILKIAS KETEMA

DIRE DAWA UNIVERSITY

COLLEGE OF BUSINESS AND
ECONOMICS
DEPARTMENT OF BANKING
AND FINANCE
DIRE DAWA ETHIOPIA

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 TABLE OF CONTENTS

Contents page
Abstract.................................................................................I
Acknowledgment...................................................................II
Table of content ...................................................................III
List of tables .........................................................................V
CHAPTER ONE
Introduction ..........................................................................1
1.1Background of the study .................................................1
1.2 Back ground of the organization......................................3
1.3 Statement of the problem ..............................................4
1.4 Objective of the study ....................................................5
1.4.1 General objective .................................................5
1.4.2 Specific objective .................................................5
1.5 Significance of the study ................................................5
1.6 Scope and limitation of the study ...................................6
1.7 Organization of the paper ..............................................6
CHAPTER TWO
2. Literature review ..............................................................7
2.1 Introduction ...................................................................7
2.2 Role of Taxation in development strategy.......................8
2.3 Characters of good tax system ......................................10
2.4 Taxation principles ........................................................11
2.5 Canon of Taxation ......................................................... 12
2.6 Major types of taxes in Ethiopia ....................................14
2.7 Classification of taxes based on their effect on income .18

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 2.7.1 Progressive Taxes ...............................................18
2.7.2 Proportional Taxes ..............................................19

2.7.3 Regressive Taxes ................................................ 19

2.8 Categories of tax payers......................................21
2.9 Procedures of tax collection .........................................21
CHAPTER THREE
3. Research Design and Methodology ………………………………….22
3.1 Research design ...........................................................22
3.2 Source of data and collection method ..........................22
3.3 Target population and sampling methods ....................22
3.4 Data analysis method and presentation.........................23
CHAPTER FOUR
4. Data analysis interpretation and presentation ...............24
4.1 Analysis of Data Gathered From Tax payers ..................24
4.2 Analysis of data gathered from employees ………………….30
4.3 Analysis and Presentation of Secondary Data................34
CHAPTER FIVE
5. Summary, conclusion and recommendation ....................35
5.1 Summary........................................................................35
5.2 Conclusion of findings ...................................................36
5.3 Recommendation...........................................................37

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 CHAPTER ONE
1. BACK GROUND OF THE STUDY

Typically taxes are the primary source of government revenues. Taxation policies depend of the
socio economic and political structure of a country. In Ethiopia though taxation came into being
with the emergence of state and government, but, there is no reliable documentary evidence
exists as to when exactly taxation was introduced.
In the 15th century written stories of Atse Zera Yacob indicates that taxation was introduced
previously in Ethiopia. In these eras tax was paid by different social groups to government,
feudal lords and priests. Besides, these documents approve that Atse Zera Yacob had for the first
time enacted regulation can be taken as an evidence for the presence of taxation system before
and on Zera Yacob government.
In general a kind of traditional tax system was practiced on those days this traditional tax system
was expresses in two forms of payment in kind and unstructured tax system. In traditional tax
system, much burden was laid on farmers.
. There was limited opportunity to increase taxes on personal or agricultural income.
Consequently, the imperial government relied on individual taxes (customs, excise and sales to
generate revenue for instance in the early 1970s taxes on foreign trade accounts for close to 2/5 th
of the tax revenue, and one third

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of all government revenues. At the same time, direct taxes accounted for less than one third of
tax revenue. During the “Dergue” regime the taxes were similar to those imposed during
Haileseassie regime except that wider tax base and increased tax rates.

The “Dergue” regime partially alleviated the tax collection problems that existed during the
imperial period by delegating the responsibility for collecting the fee and tax on agriculture to
peasant association which received a small percentage of revenue as payments.

The main purpose of generating revenue from various sources is to finance public expenditures.
The governments generate are revenue from tax and other non sustainable sources. The
collection of money from available sources of revenue by government needs the availability of
democratic government, foreign and domestic creditors and donors, efficient tax system and
awareness of the society regarding the use of tax payment for government and its contribution
for the development of the country’s economy.
In our country payment of tax is considered by the society as a debt imposed by government to
increase the wealth of the government officials. To avoid the negative attitude of the taxpayer a
well designed tax system is necessary. In addition educate the society regarding its obligation
and the purpose of tax collection minimizes the wrong attitude of the taxpayer. So, this study is
designed to minimize problems that face during assessment and collection and to minimize
wrong attitudes of tax payer

Vision, mission, vision, and strategic goals of the organization

1.2.2. Vision
To be a leading fair and modern tax and customer administration in that can finance the
government expenditure through domestic tax revenue collection..
1.2.3. Mission

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The authority shall promote the voluntary compliance of tax payers ensure integrity and develop
the skill of the employees, support the modernization system, contribute to economic
development and social welfare through effective revenue c

Customer focused service delivery (trust ,respect, protect, support)

 Protect the well being of the society
 Integrity and transparency
 Professionalism
 Collaborative working
 Law enforcement

1.2.5. Strategic goals

 To build strong and committed development oriented work force that could handle tax
administration system effectively and efficiently
 To increase tax payers voluntary compliance and discharge their obligation through tax
payers education and communication system.
 To generate accurate, complete, timely and accessible information and apply for
decision making and development plan preparation by establishing modern duty and tax
data base management system.
 To increase customers satisfaction through providing effective and efficient support for
tax payers and customs service beneficiaries
 To decrease contraband as well as tax fraud and evasion through establishing effective
and efficient enforcement system
 To collect timely tax revenue generated by the national economy effective through
establishing a strong revenue collection system.

1.2 .statement of the problem

Taxation enables the government to provide administrative and compliance cost. Therefore the
government must guide the tax laws that enable it to collect its revenue efficiently. Taxes are
compulsory payment by every person or organization to the government because the main source

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of revenue to government without expectation of direct return. Taxes are burdensome thus
reduce the economic welfare of individual and business (public) organizations. Because activate
that are finance from taxation is bring benefit to individual or organization.

1.3. Research question

So researcher will find out the following question.
1. What are the procedures followed in assessment and collection of category” c” tax payer?
2. What is the tax payer’s attitude towards for taxation?
3. Do the tax payer’s complaints and appealers get fast response?
4. What are the major problems of tax collection?
1.4. Objectives of the Study
1.4.1. General objective
To examine the tax assessment and collection problem in tax payer category C, in the case of
dire dawa city administration revenue agency.

1.4.2. Specific objectives

1. To examine the procedure followed in assessment and collection of category C tax payer.
2. To assess the tax payers attitude towards for taxation.
3. To assess tax payers complaints and appealers get fast response.
4. To find out the major problems of tax collection.
5. Recommendation

1.5. Significance of Study

To provide positive contribution in finding solution to the focused area.
To develop the researcher experience, how to do another research for future time.
To provide information for employees of the office the area in which their office faces some
problems regarding tax and collection related problem.
To provide awareness to revenue authority and take corrective function for the problems
identifying.
To identify the tax assessment and collection problem in category C.
It will used as a bases for another researcher who want to make further study on the are

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 1.6 Scope of Study
The overall scope of this study will focus on the extent to which the research objectives are
concerned. To avoid discrepancies, ambiguity, misunderstanding and other related problems, in
conducting the research objectives. The study on taxation is wide and very vast and need long
term study so researcher study will only in problem of tax assessment and collection problem in
tax payers of category C in Dire Dawa City Administration Revenu authority .

1.8. Organization Paper

The study will have four chapters, the first chapter which is an introductory section of the paper
which includes background of the study, statement of the problem, objective of study,
significance of the study, scope study and limitation of the study. The second chapter deals with
the related literature review. The third chapter details with the research methodology of the study
with the data analysis and presentation of the findings. Finally the last chapter deals about
conclusion are recommendations.

Chapter Two

2. Literature – Review

2.1. Introduction /Review of Taxation

A tax is a compulsory levy payable by an economic unit to the government without any
corresponding entitlement to receive a definite a direct quid pro quo from the government. Note
the word direct here, is not a price paid by the tax-payer for any definite service rendered or a
commodity supplied by the government. The benefits received by tax payers from the
government are not related to or based upon their tax payers. A tax is a generalized execution,
which may be levied on one or more criteria upon individuals, groups of individuals or other
legal entities (BL-Bhatia, 2003, 37).
Government at all l evels, local state and national, requires people and business to pay taxes.
Government use the tax revenue to pay the cost of police and fire protection, health programs
schools, roads, national defense and many other public services. Tax and taxation are generally

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regarded as unpleasant subjects. Justice John stated that “the power to tax is the power to
destroy” represents the rhetorical linkage of tax and tax so inevitable. Taxes are also olds
government. The general level of taxes has varied through the years, depending on the role of the
government. In modern times, many governments as especially in advanced industrial countries
have rapidly expanded their roles add taken on new responsibilities. As results the need for the
tax revenue has become great. Government can finance their activities by borrowing creating or
obtaining technical assistance from abroad and denotations. Government also secure resources
by profit from public enterprises of from sale of produced on land. But the major service of
revenue to finance public expenditure is taxes (Ibid).
Compulsory contributions by persons or organization to the government without expectation of
any direct return. Taxes are burdensome these reduce the economic welfare of individuals and
business (public) organization. But activities that are financed from taxes will bring benefits to
individuals or organization (Encyclopedia v 1952).

2.2. Importance of Taxation

According to Bernard P. two payers in rent in sovereignty government and regions give the
public sector the authority to institute tax laws. These revenue and police powers of government
nicest authoring to sovereign government control persons and properly for the purpose of
promoting the general welfare. Most taxes for both revenue and welfare propose. All taxes by
nature exert on income effect since compel drawl of revenue from private sector and reduce the
level of private sector phasing power. A tax can be defined as a compulsory contribution from an
individual for the purpose or goal.
Though a single purpose is typically dominated. All taxes by their nature provide revenues to the
government which imposes the taxes. In most instances this primary motive for existence for tax.
Tax may exist primary for regulator purpose. Tax may be regulatory in either micro economic
since. A regulatory tax designed to discourage the consumption of particular item such alcoholic
beverage or to base of product (Bernard p. 1999).

2.3. Tax evasion and Avoidance

Tax evasion is an illegal method of trying to reduce one’s tax bills. In other word, it is illegal by
redacting tax burden by under reporting income, over stating deduction of using illegal tax

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shelters while tax avoidances an attempt to reduce tax liability to minimizing tax burden through
legal means such as tax free municipal bonds, tax shelters because of the loopholes in the tax
laws and the inefficient or corrupt tax administration gives rise to tax avoidance or evasion. It
involves choosing legal form and handling affairs in such away as to taken advantage of legally
permissible alternative tax rate or an alternate method of assessing income. Tax avoidance in
contrast to tax evasion is considered by many to be legitimate aim since it is not illegal but
consists of exploiting the discrepancies and loopholes in the tax law to the further extent. Among
the most common method of tax avoidance are the manipulation of capital gains and losses, the
formation of holding companies to create article deductions and eh creation of multiple trust for
relatives and dependents. Tax avoidance in the case of indirect taxes is high but taxes avoidance
is relatively low because directly taxes can be easily shifted forward or back ward (Indigo, 2002
and world book 307 and 308).

2.4. Classification of Taxes Based on their Effect on Income

Taxes based on their impact on income can be classified as progressive; proportional and
regressive.
2.4.1. Progressive Taxes
The term progressive refers to the way the rate progresses from low to high. The rate of taxation
increase as the tax bases increases. Here as the income or sending increase the marginal rate of
tax increased, income or spending also rises. It is also possible to have a progressive expenditure
tax where the rate of rises with increment to consumption expenditure. People with higher
income tend to increase their spending on items subject of the tax to such an extent that the
payment becomes bigger portion of income Gebrie, 2006, 33)

2.4.2. Proportional Taxes

This kind of tax is whose rate remains constants as the size of the basic increases. A proportional
tax rate is usually stated as flat percentage of the base regardless of its size. This kind of tax in
Ethiopia is seen in the mining income tax proclamation 23/1996, which states that both large
scale and small scale miner shall pay 35% of their mining income (Gebrie, 2006 p 32).
2.4.3. Regressive Taxes
These kinds of taxes the marginal rates decrease as increase income. Tax a larger share income
from the low income tax payer than from the high income tax payer. A tax which is technically

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proportional interims of the tax bases, can often be considered regressive interims of tax payer
income common examples, an excise tax on cigarette is based on the on, of cigarettes sold
(Green world, 1993).
To summaries the classification of tax by graphically as follows
Tax rate% Progressive

Proportional

Regressive

Tax base
Tax base (Gebrie, 2006 35).

2.5. Categories of Tax Payers

Category “A” tax payers whose annual income about 500,000 birr declare and pay tax after the
budgetary years four months. They are obligated to keep books of account and present balance
sheet and profit and loss statement to the tax office.
Category “B” tax payer
Tax payers who are under the threshold of annual turnover income between 100,0000 to 500,00
birr maintain records on books of daily revenue and expenditure and should declare and pay tax
after the budgetary year of carryon know months.
Categories “C” taxpayers
Tax payers whose annual turnover income up to 100,000 birr keep recodes and present it for
assessment. It is highly appreciated by the tax offices and pay tax after the budgetary year of one
month (Gebrie 2006, 64 and 65).

2.6. Tax administration

Since taxes are an involuntary payment for governmental services tax payers have a strong
inventive to minimize their tax liability either through avoidance (legal) or though evasion
(illegal). Tax administration has to secure compliance with the laws by applying an array of
registration. The ability to tax payers to keep form doing these procedures and thus successfully

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avoid evading taxation determines the sizes and the nature of economy’s actual effective tax
base. Both evasion and avoidance’s seriously compromise the demonstration of the tax system,
producing a system that departs scientifically in its operation from the one that is described on
the tax legislation (Misrak p.

CHAPTER THREE
3. RESEARCH METHODOLOGY
3.1. Research Design
So as to put the objectives of the study into effect, descriptive method will be conducted to
observe tax assessment and collection problem under category “C” tax payer
3.2. Source of Data
Primary and secondary data source will be used in the study. Primary sources are the main
source of information for the study. Some information for study will be collected by researcher,
using primary source of data collection through open and close ended questionnaires. The study
will be conducted by distributing questionnaires to the Dire Dawa City revenue authority
employees and tax payer. Secondary data will collect and review the document manuals of dire
dawa city revenue authority report issued to the public.
3.3 method of data collection
All necessary data the researcher will collect by using both open and close ended questionnaire
methods of data collection from the employees and tax payers
3.4 sampling techniques and target population
The data will be collected from tax payers and employees that have long term experiences
related to tax authority of revenue in Dire Dawa city.in order to collect the desire data from these
groups. The researcher will use judgment sampling techniques. The reason behind selecting this
technique is reduce time consuming to get respondents and it heterogeneous business activity

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those categorized under C tax payers; it enables the researcher to freely select any respondents
that he/she thinks best response to the questions.

3.5 sample size

Dire Dawa city revenue authority office has about 60 total employees, from 60 employees, 20
employees will selected from revenue authority office for questionnaire. From 22,436 categories
C tax payer 50 respondent will select as sample. So, as to save time and cost efficiency and
effectively the researcher will use both tax payer and employees as a sample.
3.6 Methods of data analysis and interpretation

After the collection of all the necessary data, the researcher will analyze the data by using
descriptive data analyzing tools such as percentages and tables, because the method will enable
the researcher to obtain information about the preferences, attitude, awareness, practice, concerts
or interest of the respondents and analyze the data into a more meaningful and easily
understandable way.

CHAPTER FOUR
4. Data analysis, Interpretation and Presentation
This chapter deals with analysis and interpretation on the base of data gathered through
questionnaires. In order to acquire information for the study totally 70 questionnaires were
distributed to tax payers and employees of tax bureau. From judgment selected 50 tax payers all
50 are correctly filled and returned the questionnaires. From 20 employees of the revenues
bureau all are correctly and actively participated in responding the questionnaires.
4.1 Analysis of Data Gathered From Tax payers
Table 1 General Profile of tax Payers

Gender Male Female Total

No of respondents 31 19 50
Percentage 62% 38% 100%
Age group 20-30 31-41 41-50 Above Total
No of respondents 22 15 11 2 50

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 Percentages 44% 30% 22% 4% 100%
Educational back ground 1-8 9-12 Diploma Degree Total
No of respondents 10 13 15 12 50
Percentage 20% 26% 30% 24% 100%
Source. Questionnaires (2016)
The data collected through questionnaires indicate that 62% of the respondents was male and
38% was female all respondents age lie above 20 years. The age group from 20- 30 cover the
highest part with 44%. With regard to educational back ground 20% of the sampled respondents
learned primary Schools, 26% secondary school, 30% have diploma and 24% have degree.

Response of tax payers

Table2. How do you feel about taxation?
Response Total No of respondent Percentage
As an obligation 15 30%
As a debt 1 2%
As useful 34 68%
Total 50 100%
Source. Questionnaires (2016)
As indicated in above table only 68% of taxpayer see taxation as useful about 2%, 15% the tax
payer considered tax as debt and obligation respectively. This implies that the knowledge of tax
payer is high.
Table3. Is the payment period enough?
Response Total No of respondent Percentage
Yes 35 70%

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No 15 30%
Total 50 100%
Source. Questionnaires (2016)
Among the respondents 70% of the tax payers’ answers indicate that the payment period is
enough. The remaining 30% say the payment period is not enough. This realizes that range of
time that given for payment is enough.
Table4. When do you pay tax?
Response Total No of Respondent Percentage
When receive assessment notification 11 22%
Before due date 39 78%
After due date - -
Total 50 100%
Source. Questionnaires (2016)
As the data gathered implies that 22% of the tax payers are paid their tax liability when receive
assessment notification and 78% of tax payers paid their tax before due date.

Table5. Is your annual tax liability based on your income?

Response Total No of respondent Percentage
Yes 23 46%
No 27 54%
Total 50 100%
Source. Questionnaires (2015)
As tried to show in above table 54% of the tax payers have complain on tax amount imposed on
them because the tax they paid is not based on their income.
Table6. Do you face any problem when you pay your tax liability?
Response Total No of respondent Percentage
Yes 33 66%
No 17 34%
Total 50 100%
Source. Questionnaires (2016)

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For the above question 66% of the tax payer tell us that a problems when they pay their tax
liability. As the data gathered from questionnaires indicate major problems mentioned by tax
payers are inefficiency of tax collectors (by 26%), the existence of over taxation (26%) and
problem of procedure of tax collection with 20% of respondents.
Table7. How do you see present taxation system?
Response Total No of respondent Percentage
Good 19 38%
Bad 6 12%
Need restatement 25 50%
Total 50 100%
Source. Questionnaires (2016)
From all respondents 50% (38% + 12%) almost have positive about present taxation system and
the remaining 50% feel not good.

Table 8.Do you know why tax is compulsory?

Response Total No of respondent Percentage
Yes 49 98%
No 1 2%
Total 87 100%
Source. Questionnaires (2016)
Knowledge of tax payers about taxation is very high about 98% of tax payers have good
awareness about taxation.

Table 9. Are you satisfied with the method of assessment?

Response Total No of respondent Percentage
Yes 23 46%
No 27 54%
Total 50 100%

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Source. Questionnaires (2016)
Based on the above table 54% of the respondents are not satisfied with the method of
assessment. The following are some of the reasons mentioned by the tax payers are the tax
system are not modernized; the appointed tax collectors are not feel responsible or have no
interest on their position.
Table10. Does the tax rate imposed by government is fair?
Response Total No of respondent Percentage
Yes 41 82%
No 9 18%
Total 50 100%
Source. Questionnaires (2016)
From the total sampled respondents 18% have complain on the tax rate imposed on them because
they feel it is above their capacity
4.2 Analysis of data gathered from employees
This part of the analysis discussed with question that offered for the employees of revenues
authority and their answers 20 employees of the bureau and their manger were actively
participated in answering the questionnaires and strongly assist me by giving all necessary data
for my study.
Table 1 General profile of the employees
Gender No of Percentage Educational qualification
employees Percentage
Diploma 10%

Male 9 45% Degree 70%

Female 11 55% M.A 20%

Total 20 100% Total 100%

Source. Questionnaires (2016)

As it is shown in the above chart the total of employees in Dire Dawa City Administration
Revenues Authority those who filled are 45% are males and the remaining 55% are females.
Educational bank grounds of the employees tell us that about 70% of them have degree and 10%
of the employees are have diploma also 20% of employees have MA graduated.

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.
Table 2.Who is responsible for tax collection and assessment?
Response Total No of respondents Percentage

The policy - -
Tax payers - -
Tax office 16 80%
All 4 20%
Total 20 100%
Source. Questionnaires (2016)
Only 80% of the respondents answered that tax collection and assessment is the responsibility of
all the remaining 20% answered different answer.

Table 3. How do you evaluate the coordination of your office with others
Response Total No of respondents Percentage

Excellent 4 20%
Very Good 13 65%
Good 3 15%
Less - -
Total 20 100%
Source. Questionnaires (2016)
For the above question 20% of the respondents to tells answered excellent and 65% ,15% very
good and good respectively this percentage implies that offices coordination with others office is
good.
Table 4 what do you feel about the position you have assigned?
Response Total No of respondents Percentage

Is the right position 2 10%

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Beyond capacity 6 30%
Under capacity 12 60 %
Total 20 100%
Source. Questionnaires (2016)
From total employees only 10% of the employees feel the right about their position respondent
(60%) feel their position is under their capacity this implies that they have no satisfaction on
their position.

Table 5 what do you think about the bureaus structural adjustment?

Response Total No of respondents Percentage

Complete the work quickly 6 30%

Complete the work moderately 11 55%
Complete the work excessively 3 15%
Total 20 100%
Source. Questionnaires (2016)
According to data gathered from the respondents about office structural adjustment 30% of the
employees believe that it is good and complete the work quickly,55%of respondents feel that its
Complete the work moderately and the remaining 15% believe it’s complete the work
excessively.

Table 6 what is your idea about present tax collection and assessment system?
Response Total No of respondents Percentage

Is effective 13 65%

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Show discrimination - -
Have in sufficient manpower 7 35%
Total 20 100%
Source. Questionnaires (2016)
Among the respondents 65% of the tax payers approve that the present tax collection and
assessment system is effective and remaining 35% of the respondents answered have insufficient
power of man.

Table7. How you evaluate the knowledge of tax payer about taxation.
Response Total No of respondents Percentage

High - -
Medium 3 20%
Low 12 80 %

Total 20 100%
Source. Questionnaires (2016)
The response of employees concerning knowledge of tax payers describe that 80% of the
respondents come out with the knowledge of tax payer is low, and the remaining 20% respond
that their knowledge is medium.

Table 8 Do most tax payer pay their tax liability on time

Response Total No of respondent Percentage
Yes 41 82%
No 9 18%
Total 50 100%

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Source. Questionnaires (2016)
According to response of employees 82% of said that most tax payer pay their tax liability on
time.

CHAPTER FIVE
Findings Conclusion and Recommendation
Conclusion
The taxes are the main sources of government revenues. Taxation policies depend on the socio-
economic and political structure of the country. The study was conducted tax assessment and
collection problem under tax payer category C in Dire Dawa City Revenue Authority. The
general objective is to examine the tax assessment and collection problem according to the
established regulation of Revenue Authority and problem encountered by tax payers and
collecting authority. To examine the procedure followed in assessment and collection of category
C tax payer. The researcher was try to find out for the following specific objective.

1. To examine the procedure followed in assessment and collection of category C tax payer
2. To assess the tax payers attitude towards for taxation.
3. To assess tax payers complaints and appealers get fast response.
4. To find out the major problems of tax collection.
To achieve the objective necessary data were used. Primary data was collected through open
and close ended question. The questionnaires are distributed to employees and tax payers.
Secondary data was collected from review the documents, manuals of dire dawa city revenue

23
authority issued to the public. The researcher was used judgment sampling for it advantage of
convenient to use less time consuming. Finally the collected data was processed, analyzed and
interpreted by using different table, percentage.
The major findings that included in this research concluded as follows.
 In both questionnaires for employees and for tax payers to totally 40 males and 30
females were participated.
 The educational background of employees of tax authority is diploma and above.
 Both employees and tax payers were agreed that the tax payment period is enough.
 The tax payers are not satisfied on the present tax assessment and collection system.
 Knowledge of tax payers about tax is good.
 Employees of revenues bureau are not satisfied on their position and on their working
environment.
 Almost the majority of tax payers are suggested that the tax rate is not based on income.
 The coordination of revenues authority with other offices is very good.
 The annual tax payment imposed by government is not comparable with their income.
 The revenues authority faced a problem in service delivery by reason of dissatisfied
employees on their position and their working environment

5.3 Recommendation
Based on the finding the following recommendation is forwarded, with respect to tax collection
and assessment, the City administration revenues authority should take the following measures.
 The revenues authority should extend awareness regarding tax to the community by using
different media, flyers, and brochure and by face to face training.
 The revenues authority should try to smooth the way that the annual tax payment (tax
rate) and income of the tax payers become balanced. By informing the complain of tax
payers to concerned body.
 It should necessary to create the spheres which upgrade the knowledge of the employees.
And different training relating to tax law and amendment of tax law must be provided.
 To reduce dissatisfaction of employees on their position job rotation is one way and the
revenues authority should try to make the working environment attractive and

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 comfortable by providing refreshment center for worker and by creating duties that
improve friendly relation between the workers.

References

1. Bernand P. Herber modern public finalce (5th edition).

2. Dr BL. Bhatia, 2003 public finance 24th revise edition).
3. Dr Ramaswani parames warn Nov, 2005 public finance
4. ERCA (2011) Ethiopia: foreign trade and federal duty and tax revenue collection; Addis
Ababa. AB GET
5. Gebrie worku 2008, tax accounting in Ethiopia context 2nd edition.
6. Gebrie Worku (MSc) 2006, tax accounting in Ethiopia context 1st edition
7. Misrake Tesfaye, 2008, 1st edition. Ethiopia tax accounting theory and practice.
8. Reta Abera,2012,assessment of tax collection and related problem,

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 DIRE DAWA UNIVERSITY
SCHOOL OF BUSINESS AND ECONOMICS
DEPARTMENT OF BANKING AND FINANCE
This questionnaires are designed to collect information in tax collection problem under
category” C” in case study of dire dawa city administration .The main purpose of this
questionnaires are for partial fulfillment of the requirement of BA degree in banking and finance.
so you are kindly requested to complete this questionnaire by honest and heartedly promise that
all the information you provide will kept confidentiality and secretly and use for academic
purpose only. No need of write your name and put (√) mark for the answer you think.
Questionnaires related to revenues authority employees personal information
 personal information
1. Age A. 20-30  B. 31-40 C. 41-50  D. above 50
2. Sex A. Male  B. Female
3. Education Qualification:
A. Technical school  C. College (degree) 
B. College (diploma)  D. MA/MSC 
4. Who is responsible for tax collection and assessment?
A. the policy  B. Tax payer 
C. Tax office  D. All 

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 5. How do you evaluate the coordination of your office with the
other office? A. Excellent  B. very good 
C. Good  D. Less 
6. How do you feel about the position you have assigned?
A. is the right position  B. beyond my capacity 
C. Under may capacity 
7. What do you think about the bureau’s structural adjustment?
A. will complete the work quickly  B. will work excessively 
C. will work moderately 
8. What is your idea about the present tax collection assessment?
A. Effective  B. show discrimination 
C. Have in sufficient man power 
9. How do you evaluate the knowledge tax payer about taxation?
A. High  B. Low  C. Medium 
10.Do most tax payer pay their tax liability on time?
A. Yes  B. No 
11.Other
problem-----------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------

27
 Dire dawa university
School of business and economics
Department of banking and finance

This questionnaires are intended to collect information in tax collection problem under
category” C” in case study of dire dawa city administration .The main purpose of this
questionnaires are for partial fulfillment of the requirement of BA degree in banking and finance.
so you are kindly requested to complete this questionnaire by honest and heartedly promise that
all the information you provide will kept privacy and secretly and use for academic purpose
only. No need of write your name and put (√) mark for the answer you think.
Questionnaires related tax payer personal information
 personal information
1. Age A. 20-30  B. 31-40 C. 41-50  D. above 50
2. Sex A. Male  B. Female
3. Education Qualification:
A. Technical school  C. College (degree) 
B. College (diploma)  D. MA/MSC 
4. how do you feel about taxation ?
A. as obligation  B. as debt 
C. as useful 

28
5. is the payment period enough?
A.yes  B. no 
6. How do you feel about the position you have assigned?
A. is the right position  B. beyond my capacity 
C. Under may capacity 
7. What do you think about the bureau’s structural adjustment?
A. will complete the work quickly  B. will work excessively 
C. will work moderately 
8. What is your idea about the present tax collection assessment?
A. Effective  B. show discrimination 
C. Have in sufficient man power 
9. How do you evaluate the knowledge tax payer about taxation?
A. High  B. Low  C. Medium 
10.Do most tax payer pay their tax liability on time?
A. Yes  B. No 
11.Other
problem-----------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------------------

29
 APPENDIX 1
Dr_ d§ y„n@vRSt#
bb^ZnS³ a^×Ñì@KS TMURT b_T
y²Nk^NG³ ¨Y³NS ë^°RTmNT
yz^U meYQ §³ a®ì b²Nk^NG A³ ¨Y³NS TMURT mSK lmjmÞ¶ DGÞ ymmrq#¶
"uƒF lìz¬jT s^ÒN y:h&ÛN Tk&rT bDr_ ë§ ktì aStëdR gb^¿{ :–b_T y ″h″ GBR
k¨Ç{ yGBR as²sB §³§³ {GÅ{³ msrª§# MKN¶Ä{ MN ANdÒn& lìwQ yì@drG
E³Tnˆ¥¥ lz^UM g^z_¿TN mS§T aDRgˆ Slt²bÝI A¶msgNk& yì@se&IN TKKl¼
M®} A³ ¾±B bì@SER bm¶Z lE³t> a®ì Bê ANdì@ˆL šL Ag²lˆ¥¥

ì±sb^¶¥- SÀTN m©F a¶SfLGM¥¥

aì™X lts&T½[ˆ E¶q†¿{ TKKl¼ nˆ yì@lƒTN ±EN ˆSE bXrT MLKT (√) bìDrG
YmLs&¥¥

KFL aND‐ yGL mré¿{

1.˪ u. wND l. s_T

2.ODì… u.20-30 l.31-40 h. 41-50 m.k 50 b®Y

30
3.yTMURT dré u.1¼ dré(1-8) l. 2¼ dré (9-12)

h.ë^PÉì m. ymjmÞ¶ DGÞ

4.yTëR uƒn…ª u. ¶g²–{ l.¶®g²–{

KFL uƒlT‐ Msrª§# meYÖ{

1. Sl GBR ak¨fL MN ¶S²lƒ›

u.And Gd_ª l. And Aë h.ešì@ nˆ

2. yt½lB¿TN yGBR meN lmKfL ytse&T g^z_ bq#nˆN›

u.a¿ l.aYdlM

3. yt½lB¿TN GBR m[† nˆ yì@kFlƒT›

u.ìSªwq#¶ ANdw½

l.yGBR mKf¶ g^z_ ±¶bš

h.GBR mKf¶ g^z_ kte³qq bç®

4. yì@kFlƒT yGBR meN gb^¿TN ¶ìkl nˆ› u.a¿ l.aYdlM

5.GBR bì@kFlƒbT g^z_ ¶¬eÀT {GR al› u.a¿ l.aYdlM

6.bE¶q† q>ER 5 msrT mLÎ a¿ kÒn MKN¶Ä MNDnˆ›

u.yGBR a½½L A³ as²sB ¾@dT {GR albT

l.GBR sB±b^ BlSL½N DKmT albT

h.kaQM b®Y yÒn yGBR a½½L {GR al

m.l_® {GR
·l----------------------------------------------------------------------------------------------------------
--------

7.yGBR a½½L a³ as²sB ¾@dt> baeš®Y MN YmS®L ›

u.EÝ nˆ l.mEÂ aYdlM h.ìSt·k¶ ¶SfLg§L

8.GBR mKfL yˆd_ª Gd_ª mÒn&N ¶ˆšlƒ u.ašlˆ l.a®ˆQM

31
9. .bE¶q† q>ER 8 msrT mLÎ a®ˆQM kÒn MKN¶Ä MNDnˆ›

u.GBRN btmlkt GNºb_ yì@¶SxBE a·L ylM

l.GBR laNë^T ugR ADgT AMBºM EQM ylˆM

h.GBR ymKfL Gd_ª ylBIM

m.l_® ¾±B
·l----------------------------------------------------------------------------------------------------------
---------

10.bGBR as²sB ¾@dT rKt§L› u.a¿ l.aYdlM

11.bE¶q† q>ER 10 msrT mLÎ aYdlM kÒn MKN¶Ä MNDnˆ

u.yGBR ²lS½n& asL[# yÒn as™R

l.yGBR as²sB ¾@dt> ytq®ef aYdlM

h.y²lSL½n& s™tÚ{ GDâl} ³[ˆ

m.l_® ¾±B ·l------------------------------------------------------------------------

12.bmNGST yì@½lˆ yGBR meN aG²B nˆ› u.a¿ l.aYdl

32
MILKIAS KETEMA

33