The effect of tax audit on tax compliance: the case of jimma zone revenue authority

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.