Abstract:
The main purpose of the study was to evaluate the determinants of tax revenue in jimma town,
Ginjo guduru sub - city. Descriptive and explanatory research design was used to examine
the relationship between tax audit practice, tax fairness, tax payers’ knowledge, social and
economic instability, tax system complicity and tax revenue of Jimma town association. Both
quantitative and qualitative research approaches were used in the study. Target population
of the study was 286 Ginjo guduru sub - city tax payers of jimma town. The researcher was
employed both stratified and simple random sampling techniques. Primary data was used as
a source. The collected data were summarized and analyzed using descriptive and inferential
statistics. The major research findings were the tax revenue has a significant positive relation
with tax audit practice, tax fairness, tax payers’ knowledge, social and economic instability.
Besides, the highest correlation coefficient was found between tax revenue and tax audit
practice, followed by between tax revenue and tax fairness, tax payers’ knowledge, social and
economic instability and also there was insignificant relation between tax revenue and tax
system complicity. The study recommends that the tax authority could also upgrade the
skill and competency of tax officials in order to handle tax related offences in a better
way and working procedures of the authority should be fully automated
