Assessment of tax audit: the law and practical study of south western peoples regional state: kaffa zone Bonga city administration

Abstract

The thesis examined the international, federal, and regional legal frameworks and the practical implementations of tax auditing, the ethical and professional set up of the auditors and bodies in Bonga city tax administration in realizing fair and equitable treatment of the taxpayers and just tax system, it also examined the legal framework and the adequacy of commitment by the administration and the government in realizing fair and equitable tax auditing system. The thesis ultimately forwards possible solutions in this regard. Accordingly, the data was collected through interviews from the taxpayers under the category A and B in Bonga city and concerned governmental bodies. The analysis of data and information collected are made concerning obligations that Ethiopia has undertaken, at the federal as well as regional level. Accordingly, the findings revealed that taxpayers in the Bonga city administration are subjected to several unfair and discriminatory treatments and system of auditing which is unjustified and arbitrary, again unethical and malpractice of professional standards by the tax auditors, irresponsible act of the tax administration intensified the challenge of the taxpayers and the justice system. Even though several taxpayers remained in the market with the existing injustice many taxpayers are forced to leave the market and lead their lives and their fellow employees abandoned. The tax law stresses that taxpayers should be treated fairly and in an equitable manner nevertheless due to incompetence on technical duties of auditing, unethical behavior, and breach of the professional standards particularly through corrupt acts, bias toward the taxpayers is a challenge. The commitment of the tax administration to train the tax auditors to build the skills and knowledge is unsatisfactory and there is no trained of keeping the data of taxpayers in a well-organized manner. Again the nonexistence of a tax appeal commission in the area affected adversely the taxpayers and the justice system of the taxation. The report of high court of Kaffa zone and an anti-corruption commission of the city administration exposed the existing problem. The thesis recommends that the tax there has to be simply documented ethical and professional standards for the tax auditors again the tax law must retain from a frequent amendment of the tax laws. In Bonga city administration the government has to provide capacity building training for the tax auditors, it is indispensable to form a tax appeal commission and bring before justice the taxpayers violating the law and the government should provide a platform that anti-corruption commission to investigate