Investigation of Tax Assessment Challenges of Category “C” Business Income Tax Payers in Debre Markos Town

Abstract

This study Investigates Tax Assessment Challenges of Category “C” Business Income Tax Payers In Debre Markos Town . The study adopts a mixed methods research approach by combining data gathering instruments of research questions, in-depth interviews and document analysis. The questionnaire data were analyzed using descriptive statistics, correlations, and logistic regression analysis and data from interview and document reviews were interpreted qualitatively. The findings of the study show that, the five variables which are Tax law enforcement, Taxpayers attitude, Educational level of taxpayers, Level of taxpayers actual income, and Tax system fairness significantly influence the tax collection performance of Debre Markos town tax Authority. The study suggests that the tax authority should create awareness towards the taxpayers why tax are levied from them and change the negative attitude of taxpayers towards tax. The tax authority should be clear of the way of tax estimation, what and how presumptive taxation applicable to tax payers through discussion agendas with taxpayers. Keywords: Tax assessment, business income tax payers, category ‘C’ taxpayers, presumptive taxation DOI: 10.7176/RJFA/11-7-02 Publication date: April 30 th 2020