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The Assessment of Tax Audit Practice and Challenges in Gedeo Zone

Year: 2025
Type: article
Abstract: The major objective of this study was to assess the practices and challenges of tax audit in Gedeo zone Revenue Authority. The study employed mixed research method where survey design and interviews were employed. Survey was conducted with selected tax auditors and tax officers working at Gedeo zone Revenue Authority. Actual sample size achieved was 384 tax officers survey, and five years fiscal and financial data was gathered from Gedeo Zone Revenue Authority and analyses. In addition depth interviews were conducted by purposive sampling.Data was analyzed by mean and standard deviation by using SPSS (Statistical Package for Social Science) Results of the study reveal that the practices to achieve ultimate Goals of Tax Audit was found at moderate level; the Office did not proportionally focus on all types of Tax Audit techniques; most of the time Tax Audit activities were done without schedules. Overall the practices of Tax audit at zone level were good practiced,The most frequently performed tax audit in revenue authority branch offices in Gedeo zone are desk audits, comprehensive audit, deregistration audit, fraud investigation and issue audit respectively on the basis of the mean value of the survey though there is some sort of deviations in the reply among the surveyed individuals Concerning challenges that influence the practices of Tax Audit; factors related with Traditions of Corruption, inflated estimation of tax amount; not responding the compliance of Taxpayers on time; Taxpayers consideration of illegal business practices as best way of doing business; and absences of coordinated efforts among sector offices of the region engaged on Tax audit related responsibilities were identified as the most sever challenges. Key recommendations of the study include: the main goal of tax audit can be detection of tax evasion and avoidances, creating prevention effect on non-compliant taxpayers’ and increasing tax compliance level of taxpayers; assigning competent Tax Auditors, integrating sector offices’ efforts, developing and using annual schedule of auditing for Taxpayers business firm, and provision of capital and consumable resources and trucking the network and power failure.
DOI: 10.20372/nadre:19329
Author: YONAS BEYENE
Language: English
Open Access status: green
OpenAlex ID: W7084579481
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