Perception of Ethiopian on Federal Tax Authority: A Comprehensive Study

Abstract

This paper examines satisfaction of business taxpayers with the tax system. The study focuses on examining the views of taxpayers towards the tax taxpayers ’services, tax policy, tax administrative mechanism and tax law enforcement. The study has adopted a sequential explanatory mixed method research approach. The data were collected from federal business taxpayers through questionnaire and in-depth interview and descriptive. The data collected are analysed using descriptive data analysis. The findings of this study reveal that business taxpayers are not satisfied with the existing tax systems. Moreover, the finding further reveals that the tax system is so complex and unfair, discretionary treatment by officers and existent of lack of monitoring in the tax authority. Finally, the paper suggests a series of measures, which could be taken by the government in general and tax authorities in particular, are improving tax policy and administration issues, stepping up their duty of promoting tax awareness; tax officers should be given intensive and repetitive training to improve their attitude and promoting a code of conduct with emphasis on ethical values; and finally, tax refund procedure would be simplified.