Abstract:
The major objectives of this study was impact of tax audit on improving The compliance of tax
payer a case study of Jimma city administration revenue authority office .The study specifically
sought the effect of Probability of being tax audit, perception of government spending,
Fairness, Attitudes, awareness, fines and penalties and tax education on tax compliance in
Jimma city administration revenue authority office. To achieve objective of the study, both
qualitative and quantitative research methods were employed. Data was collect using
questionnaire, interviews and both primary and secondary data were used. The Sample of
respondents were selected for the study was all tax audit staff member. As the number of tax
audit staff are limited in number a census was adopted to include all 65 tax audit staff member
in the study. Those tax audit staff member was 65 employees selected a census all of tax audit
staff members in Main Office and sub cities, including quality controllers And Head managers
of Main office and three sub cities Descriptive statistical tools and multiple linear regressions
analysis were used in analyzing the data collected. The study findings showed that probability
of being tax audit; tax education, tax fairness, tax payer attitudes and awareness have positive
effect on level of tax compliance. Similarly, fines/penalties and perception of government
spending have positive effect on level of tax compliances. The study provides some preliminary
evidence that probability of being tax audit, imposing fines/penalties and provision of tax
education, fairness, attitudes, awareness and perception of government spending will improve
tax compliance. Key recommendations of the study include: regard to Education; effective
probability of being audited; to educating the tax payers and improving thoroughness of audit,
educating the taxpayers and conducting awareness creation, and It has to work also making
the whole tax system as fair as possible with regard to the benefits received for paying the tax
and the tax burden of paying it. a government must will have change attitudes of tax payers
by educating them and by change of tax payer outlook about tax and the government must have
wisely spending for the national revenue, for example for basic facilities like education, health
and safety and public transportation.
