Factors Affecting Turnover Tax Collection Performance: A Case of West Shoa Zone Selected Districts

Abstract

Factors affecting turnover tax collection performance. A case of West Shoa Zone selected districts. In 2017/18 the targeted revenue was 9041224 birr with the actual revenue being 7888536 birr (equivalent to 87.25% or a difference of 1152688) was existence of turnover tax collection gap. This study used mixed research approach and sampling (Systematic random, purposive sampling). Sample sizes 373 respondents selected and distributed questionnaires and interview. Data analyze by SPSS version 20 and factor analysis. Findings revealed that; employee qualification and manpower, taxpayer registrations, technology and information system, management commitment level and tax knowledge affects turnover tax performance positively. It was revealed that perpetuation tax fairness affects negatively where as compliance cost has a negative statistically insignificant. They concluded that the problems facing revenue administration office while collecting turnover tax. Based on the study recommended that revenue authority need to develop strategic management commitment, recruit sufficient number of employees and continues training qualification, maintaining tax fairness and equity, improve taxpayer identification and registration, increase number of users of Electronic Tax Register, extensive tax knowledge (awareness) creation programs update and maximize frequency tax audit effective on field compromising a priority task.