Abstract:
The study examines the effect of tax audit on tax revenue a case of the Jimma zone revenue and customs authority.
The study used descriptive approach. To achieve the objectives sought, the researcher employed or uses data from
primary data. Primary data collected through structured questionnaire. The researcher used purposive sampling
techniques to identify the respondents. In accordance with the data types, quantitative analyses employed. The study
used multiple regression analysis and descriptive statistics to estimate the relationships between type of tax audit
and frequency of tax audit as independent variable, and tax compliance as dependent variables. Excel software help
transform the variables into format suitable for analysis, after which SPSS used for data analysis. The researcher
concluded that educational level attainment of respondents is good and which is related to their profession but there
is no training for tax auditors’ and the number tax auditors as well as case selection decision is based on the
information from SIGTAS. The recommendation given by researcher was Revenue authority must increase the
number and improve the capability of total audit staff resources to achieve required audit rate and audit quality that
might improve overall compliance and future tax revenue performance.
