Abstract:
Developing countries governments try to build modern tax system. However, many of these
developing countries face challenges with collecting taxes effectively and also with taxpayers’
negative feelings to words paying tax. The purpose of this study was to determine tax collection
performance with regard to category “A” taxpayers found in sheka zone. To accomplish
objectives, the researcher used descriptive and explanatory types of research design and both
primary and secondary data collection techniques were adopted. The study employed both
qualitative and quantitative approaches to conduct this research. From 5 woredas two woredas,
one city administration and zone revenue authority were selected. The study used Yamane
formula to select representative sample from entire population. The study used the response from
203 respondents from category A tax payers and employee in revenue authority office. Five year
(2010-2014) data has been collected from secondary sources and also primary data were
collected through questionnaire. The researcher used both questioner and interviews to collect
data for research. All collected information was analyzed by using both descriptive, multiple
liner regression models. Data obtained from respondents were entered into SPSS software
application for analysis. For this study, six independent variables identified including tax
planning, tax law, training and awareness of tax payers, inflation rate, experience of tax
collectors and employee qualification. Therefore, based on output of SPSS all independent
variables have affects tax collection performance significantly. Therefore, the zonal tax
collection plan was not fully collected, VAT registered tax payers were dishonest, engagement of
taxpayers in tax evasion, weak tax law implementation poor training and awareness of tax
payers and employee qualification were a major finding of the study. Then, the researcher
recommended that sheka zone revenue authority should understand the contributions of these six
variables to poor tax collection performance.
