Determinants of tax revenue in jimma town; The case of ginjo guduru sub - city

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