Chapter Four

1. Data analysis and interpretation

1.1. Descriptive analysis

The research paper investigates factors affecting tax revenue collection in Jigjiga city revenue and
custom authority. A survey was conducted on among taxpayers in 10 Kebeles consisting of 358
taxpayers and with 312 (87.8%) return rate. The study focused on tax evasion, compliance, office
capacity, and taxpayer awareness among others. Primary data was collected based on standardized
questionnaire and a five-point Likert scale to determine respondents' agreement on the issues.
Besides, qualitative data was collected and analyzed to accompany the findings of the quantitative
analysis.

1.2. Demography of respondents

Table 1: Demographic characteristics of respondents

Gender of Respondents Frequency Percentage

Male 273 87.5
Female 39 12.5
Total 312 100
Age of Respondents Frequency Percentage
Below 30 23 7.3
From 31 to 40 183 58.6
From 41-50 26 8.3
More than 50 80 25.6
Total 312 100

Educational Background of Respondent Frequency

1 to 10 48 15.3
Certificate 44 14.1
Diploma 150 48
First Degree 70 22.4
 Total 312 100.0
Source: Questionnaire 2024
Table 1 shows the gender, age, and educational background distribution of the respondents.
According to the result, 87.5% of our respondents are male and the remaining 12.5% are female.
Regarding their age, table 1 shows that majority of respondents belong to adulthood (>= 40 years
old). As most tax payers are business owners, it is expected that most of our respondents belong
to this age cohort. In terms of level of education, majority of tax payers in the city obtained either
diploma or certificate (62.1%). This figure reflects, most tax payers can process both abstract and
concrete knowledge about taxation system in the country. Knowledge is crucial for attitudes
towards tax compliance.
Based on the above table, the demographic breakdown provided shows a workforce in the taxation
sector that is predominantly male and middle-aged. The educational background indicates a
relatively high level of formal education, which is conducive to understanding and processing both
abstract and concrete tax-related knowledge. This educational factor is important as it relates
directly to attitudes and compliance in taxation, suggesting that the respondents are likely to have
a reasonable understanding of the tax system.
From a policy or operational perspective, the underrepresentation of women may be an area to
address, possibly indicating a gender disparity in the sector or in the sampling method.
Additionally, the significant proportion of the workforce over 40 could suggest a need for ongoing
training and education to keep older professionals updated with changes in tax legislation and
technology.
The data could help tax authorities or related organizations to tailor their educational programs
and compliance strategies to fit the demographic profile of the sector, focusing on enhancing
understanding and compliance across different age and education levels, and addressing gender
disparities if necessary.
General questionnaire
Table 2: type of business
Frequency Percentage Valid Percentage
Proprietorship 242 83.5 83.5
Partnership 62 13.2 13.2
Share company 7 2.9 2.9
 Private limited company 1 .4 .4
Total 312 100.0 100.0

Source: Questionnaire 2024

Table 2 shows that 83.5% of the respondent's engaged in privately owned business (Sole-
proprietorship) while the remaining 16.5% of tax payers engaged in partnership or PLC (recently
emerged business type in the region). In developing countries and across the world, sole-
proprietorship businesses dominate private enterprises.
The data from Table 2 suggests a strong prevalence of sole proprietorships among the businesses
surveyed. This dominance of sole proprietorships is consistent with global trends, especially in
developing countries, where the barriers to entry are lower, and the flexibility and control offered
by sole proprietorships make them attractive. The relatively straightforward and less bureaucratic
structure of sole proprietorships can appeal to individual entrepreneurs.
Implications of Business Type on Tax Compliance and Economic Behavior:
• Sole Proprietorships: These businesses often have less formalized structures, which may
result in less rigorous financial documentation and tax compliance. The flexibility and
informal strategies that make proprietorships appealing can also lead to higher rates of tax
avoidance or evasion, as mentioned by Abdurakhmonovna (2024).
• Partnerships and Share Companies: Although these business types are more structured
than proprietorships, they still constitute a small portion of the total. Their presence
indicates some diversity in business operations but might also face challenges in terms of
formal compliance due to varied ownership and management structures.
• PLCs: Their almost negligible representation might be indicative of either higher
regulatory requirements or a nascent stage of corporate structure development in the region
Table 2: Category of tax payers

Category of tax payers Frequency Percentage Valid Percentage

B 209 65.7 65.7
C 103 34.3 34.3
Total 312 100.0 100.0
Capital of the Business Frequency Percentage Valid Percentage

From 1m to 5million 176 40.0 2.1

From 5 million to 10million 62 20.2 7.0
 Above 10 million 74 38.8 83.1
Total 312 100.0 7.9

Table 3 shows Taxpayer Categories:

• Category B: Represents 65.7% of the total respondents, with 209 individuals falling into
this category. This suggests that the majority of businesses are expected to pay annual taxes
ranging from 150,000 to 350,000 birr.
• Category C: Accounts for 34.3% of the respondents, with 103 individuals. These
businesses are likely subjected to a different tax bracket, which could be lower or higher
based on regional tax policies.
Capital of the Business:
• Small to Medium Enterprises: The majority of businesses surveyed have a capital
ranging from 1 million to above 10 million birr. Specifically:
o 40% have a capital between 1 million to 5 million birr.
o 20.2% have a capital between 5 million to 10 million birr.
o A significant 38.8% of the businesses have a capital above 10 million birr.
Key Observations:
• Majority Small Business Classification: According to the Ethiopian Development
Research Institute (EDRI, 2019), businesses like those described are considered small
businesses. This categorization impacts tax strategies and economic support programs.
• Potential for Revenue Enhancement: With a substantial portion of businesses operating
with significant capital, there is a high potential for revenue generation. Enhancing
administrative capabilities, worker training, and legal enforcement could significantly
increase tax revenue collection in Jigjiga city.
Implications:
1. Resource Allocation: Strengthening the city's tax office with better resources and training
can improve efficiency in tax collection and compliance.
2. Policy Development: There may be a need for tailored tax policies that consider the
diverse scales of business capitals, ensuring fair taxation while encouraging business
growth.
 3. Public Engagement and Education: Increasing engagement with taxpayers about their
obligations and the benefits of tax compliance can aid in fostering a cooperative tax
environment

Tax Collection
Table 3: Tax payers attitude regarding tax

Question regarding to tax collections Responses

Yes No
N Percentage N Percentage
235 64% 87 35.95%
Does the government collect enough tax revenues?
Source: Questionnaire 2024
As we understand from the table 4, 235 or 64 % of the respondents believed that the government
is currently collecting enough amount of tax; however, the remaining 36% believe that it is not.
The implication of the above table is the government might need to consider these perceptions in
their tax policy. While a majority are satisfied, a substantial minority are not, which could influence
public sentiment and compliance with tax laws. The discrepancy in perceptions also highlights the
need for increased public education about tax use and needs. Educating the public on how tax
revenues are utilized might align perceptions more closely with governmental fiscal strategies.
Additional studies could explore the reasons behind the minority's perception, potentially focusing
on specific demographics or economic sectors that feel underserved by current tax policies.
Tax Office Capacity
Table 4: Office capacity

Descriptive Statistics
N Mean Std. Deviation
Tax office has enough capacity 312 1.9380 .86440
Descriptive Statistics
N Mean Std. Deviation
File handling 312 2.414 .92195
The tax office uses quality system & technology 312 2.0124 .42222

Tax office offer suitable services 312 2.6653 .94647

 Tax office place is appropriate 312 2.7769 1.08163

Tax office employees are cooperative 312 3.4876 .92558

Tax office has enough employees 312 2.3512 .86697

Grand mean 2.5208 0.8613

Source: questionnaire 2024
Tax office capacity refers to the ability of a tax office to control, serve, and conduct audits at the
right time, which can facilitate or dissuade tax revenue collection. A survey conducted with tax
payers revealed that the tax office has not enough capacity in terms of workforce and technology
(as the mean value indicates 1.98 which is below the average 2.6 in a five point Likert scale item).
The standard deviation also revealed that there is significant variation between respondents
regarding office capacity. This will be explained later in the inferential statistics part. Looking at
the details, expect the whether employees cooperative with tax payers, most of the indicators
reveals a below average mean and higher standard deviation. Therefore, the administrators should
work to establish a meticulous office layout, equipment’s, and aiding technologies to enhance the
revenue collection. As tax office is a service institution, the layout, capacity and accompanied
technological reflects the quality of the services (ambiance) and creates appeal to customers to use
or not to use the services ( (Tilahun, 2016)

The tax office has less man power and technology to control taxpayer transactions and does not
audit taxpayers annually. This results in the tax office not collecting the intended amount of tax.
Many respondents disagreed with the statement that the tax office has not capacity to handle
taxpayers' files properly, as well as the use of quality systems and technology (Hackney, Akitoby,
& Harrison, 2020).

The tax office's capacity is also affected by the types of services rendered, such as the type of
service offered and the location of the tax office. The majority of respondents disagreed with the
idea that the tax office is not comfortable for taxpayers, which could lead to less tax revenue
collection (Abdu & Adem, 2023).
In conclusion, the data suggests that while the tax office in Jigjiga city has cooperative staff, it
struggles with technological and staffing limitations, affecting its overall ability to serve taxpayers
effectively and collect the necessary revenue. Addressing these issues could lead to better taxpayer
compliance and increased revenue, enhancing the city’s financial health and public service
capability. This strategic focus aligns with the insights provided by the cited authors (Tilahun,
2016; Hackney, Akitoby, & Harrison, 2020; Abdu & Adem, 2023), suggesting that service quality
and office environment significantly influence taxpayer satisfaction and compliance.

Tax Compliance
Table 5: Status of tax compliance

Descriptive Statistics
N Mean Std. Deviation
Declaring tax is obligation 312 3.9421 .95368

Tax collection and assessment is correct 312 1.7025 .88458

Rules and regulation are comfortable 312 1.7355 1.04479

Time of tax payment is comfortable 312 1.5620 .78780

Tax declaration form is enough to fill all information 312 1.5620 .78780

The tax declaration form easy to compute tax 312 1.7686 .94899

Tax declaration form clear and understandable 312 2.8306 .10956

The county has right tax rules and assessment 312 2.0702 1.04214

Grand mean 2.1467 0.8199

Source: Questionnaire 2024
Tax compliance is a crucial factor affecting tax collection (Abdu & Adem, 2023). A five-point
Likert scale was used to assess the impact of tax compliance on tax collection. The results showed
that most respondents agreed that declaring tax is an obligation, which can positively affect tax
collection. However, there was a strong disagreement on the accuracy of tax collection and
assessment by tax offices. Tax rules and regulations were also perceived as uncomfortable for
taxpayers, which can lead to less tax collection. The time of tax payment was also a significant
factor, with many respondents disagreeing that the system was too long and disruptive. The tax
declaration form was also found to be insufficient, as it discouraged taxpayers from filling all
necessary information, resulting in decreased tax revenue collection. The tax declaration form was
also found to be difficult to compute, with most respondents disagreeing that it was clear and
understandable. In conclusion, Tax compliance is a multifaceted issue that requires attention to
both the structural and perceptual aspects of the tax system. Enhancing the clarity, fairness, and
convenience of the tax process can lead to higher compliance rates and, consequently, increased
tax revenue. Addressing these challenges through thoughtful reforms and taxpayer education could
significantly improve the efficiency and effectiveness of tax collection in Jigjiga city. This
approach aligns with the findings of researchers like Abdu & Adem (2023), emphasizing the
critical nature of compliance for effective tax administration.

4.2. Reliability and factor analysis

The research employed JASP software (0.18.2 version) to analyze the data collected for this
research. The first part of the analysis contains the reliability test analysis. According to Nunnally
(1969) the reliability analysis or popularly known as the Cronbach Alpha test is used to measure
internal consistency. It shows how closely are related a set of items used in the research as a group.
If the Cronbach alpha score is (>= 0.70) then we can say there is a high level of reliability of the
indicators used to measure the construct or factors. The results of the reliability analysis of all
indicators about tax revenue collection is presented below in table 8

Table 6: Cronbach Alpha and McDonald's omega

Source: JASP software (0.18.2 version)

According to Table 1, both the Cronbach Alpha and Omega test for the overall indicators is well
beyond the minimum requirement. The Alpha and Omega values are (alpha=0.907 & 0.898) which
shows the measures used to measure the organizational resources are highly reliable on both
criteria. The results indicate the researcher employed the appropriate indicators to measure one of
our constructs. In addition, we used to test the value of individual indicators to measure the level
of reliability of each indicator used to measure the construct. The result is presented in the Figure
2

Figure 1: Relaibility test from individual indicators

According to Figure 2, the reliability of individual indicators is well above the minimum
requirement of 0.7 (Nunnally, 1969). We can conclude that from both Table7 and Figure 2, the
instruments used in this research are highly reliable both overall and as individual indicators. With
this, we can say the results give a green light to conduct further analysis such as principal
component analysis.

Next, we analyzed the reliability of the items used to measure tax organizational capability (office
capacity, quality of expertise, technology, and tax assessment together).
Figure 2: Relaibility analysis for managerial statistics

Figure3 shows that the reliability test was used to measure the indicators of managerial
competence. According to Table3, the Cronbach Alpha result of the managerial competence is
(0.921) and the Omega value for the same measures is (0.923) in both cases the result is well above
the minimum requirement of (0.7). Table4 also shows the reliability value of each indicator where
the value of all the indicators used to measure managerial competence is above the minimum
requirement. Similar to organizational resources, managerial competence is measured by highly
reliable factors.
Figure 3: Reliability test for operational Statistics

According to above Figure, the reliability result, and the indicators used to measure organizational
performance are highly reliable. The Cronbach alpha value for the overall score is (0.917) and the
omega value is (0.910). The individual indicators are beyond the minimum requirement according
to (Nunnally, 1969).

After the reliability test, we conducted factor analysis, the principal component analysis to measure
the dimensionality of our variables. The principal component analysis primarily intends to reduce
the number of factors (which in this case the items) to a few dimensions based on the underlying
attributes of the latent variable. Before adding variables together or creating composite latent
factors, factor analysis is important to show the underlying similarities between each indicator to
form the latent independent and dependent variables. Because the items used in the research to
measure both the dependent and independent variables are standardized, therefore we use the PCA
(principal component analysis) based on the VARIMAX orthogonal rotation matrix. The Varimax
rotation is suggested by scholars since we used a standardized questionnaire from established
research. We employed strict criteria to establish the result based on the established criteria.

According to our theoretical and empirical review, tax revenue collection is a construct that
consists of awareness, compliance, office capacity, law and assessment about tax collection. This
conceptualization sets this research apart from the previous researches. Most of the previous
studies assumes or measure tax revenue collection as binary variable in which researchers ask
respondents whether they pay tax or not. Moreover, studies also take annual tax revenue as
continuous variable and measure the impact of others dimensions mentioned in this research as
independent variables.

However, we argue that tax revenue is a concept than a variable. This is because; it is a
conceptualization in which each element constitutes the higher order concept of tax collection.
Asking a yes or no question cannot reflect whether individuals or firms are paying the fair amount
of tax or according to their capacity. Similarly, whether a person is ranked according to the amount
of money paid didn’t realize whether the office is collecting higher income or not. Because tax
collection depends on the ERCA guidelines and more generally the government’s objective,
therefore it cannot be directly measured as it goes up or down against the will and objectives of
these stakeholders. Moreover, the amount of tax levied on individuals depends on the nature of
economy and government policy (Gnangnon, 2022). Therefore, we believe, tax collection is an
unobservable variable.

When there is high awareness among tax payers, office are better equipped, high rate of
compliance, the nature of tax law is good, and fair tax assessment exist, then the tax revenue
collection tend to increase. Government can increase its tax revenue by levying high tax rate, or
ignoring tax relief or tightly monitoring the behavior of tax administrators. But, this may be done
by infringing the individual’s rights. Moreover, governments may give tax holidays to implement
a certain economic policy such as encouraging imports or exports or to guide investors to a given
sector. Therefore, rather than solely relying on the amount or the extent to which each individual
or firm pay, conceptualizing tax revenue collection as a composite construct have numerous
advantages.
Figure 4: Chi -squared Test

Figure 5 shows the Chi-Square test with degrees of freedom and the P-value. According to the
result, the Chi-Square value is statistically significant at P-value (<0.01) which shows the model
is adequate to discriminate the number of factors where the factors measure distinct attributes of
the respondents. The two factors cannot be added together as they measure separate dimensions
with different attributes.

Figure 5: Component Characteristics

According to Figure6, two factors are extracted from our analysis and the cumulative variance
extracted to explain the two factors is 82.9%. Furthermore, the contribution of each factor to the
total variance is equal which makes the two dimensions independent of each other. The result
indicates the two factors explain sufficiently the variance in the independent variables and the
result suggests we can create two composite latent variables to measure tax revenue collection
problems.

The above result is also confirmed by the Scree plot presented below. Scree plot is a useful method
to show graphically the number of factors retained which are above the Eigenvalue greater than
one. The cut-off point is Eigenvalue 1 (Shorts et al., 2015).
Figure 6: The scree plot

The scree plot as shown in Figure 7 suggests we have two factors from the total of 15 indicators
used to measure our independent variables. As the result suggest, the Eigenvalue (1) is used as the
yardstick to divide the number of factors. As the figure indicates, there are two factors above the
Eigen Value (1).

Furthermore, we tested the Kaiser-Meyer-Olkin test. If the KMO result for each indicator is greater
than the minimum requirement of 0.5, we can conclude that the sampling adequacy is maintained.
Testing the sampling adequacy further confirms the suitability of the data for factor analysis and
if the KMO is above 0.7, it gives the researcher more confidence to conduct factor analysis. As
shown in Figure 14, all of the items have a greater than 0.8 value which indicates the instruments
used are highly valid.
Figure 7: KMO test

Regarding the dimensionality of the indicators, Figure 8 presents which items belong to which
latent variable (factor).

Figure 8 : Component and factor loading

As figure9 shows, two components with factors loading above 0.6 are extracted. Based on the
standardized instruments, we named the two factors (organizational capability and legal and tax
assessment capability). Organizational capability include managerial competence, systems such as
tax collection technologies, office efficiency, complain handling, timely, and tax assessment
expertise in customer and revenue office in Jigjiga branch. Legal and tax assessment compliance
is concerned with the effectiveness of legal enforceability, fair assessment of tax, avoiding
 negative perception of tax and others. Based on these factor analysis results, the following
inferential analysis was made to rank in order of importance (i.e. to answer the second research
question).

1.3. Inferential statistics

Table 7: Correlation matrix

Awareness Office Tax Tax law Tax

capacity assess compliance

Pearson
1 .896** .639** .782** .623**
Correlation
Awareness
Sig. (2-tailed) .000 .000 .000 .000

N 312 312 312 312 312

Pearson
.896** 1 .660** .861** .736**
Correlation
Office capacity
Sig. (2-tailed) .000 .000 .000 .000

N 312 312 312 312 312

Pearson
.639** .660** 1 .756** .632**
Correlation
Tax assessment
Sig. (2-tailed) .000 .000 .000 .000

N 312 312 312 312 312

Pearson
.782** .861** .756** 1 .794**
Correlation
Tax law
Sig. (2-tailed) .000 .000 .000 .000

N 312 312 312 312 312

 Pearson
.623** .736** .632** .794** 1
Correlation
Tax compliance
Sig. (2-tailed) .000 .000 .000 .000

N 312 312 312 312 312

**. Correlation is significant at the 0.01 level (2-tailed).

According to Table 8, these factors are highly correlated. Therefore according to our PCA and
correlation analysis, according to their order of importance

Tax revenue collection problem in JIGJIGA city administration are

1st lack of organizational capability:

➢ Lack of office capacity

➢ Technological capacity
➢ Expertise awareness and perception
➢ And office layout

2nd lack of legal capability

➢ Gap in tax law

➢ Tax assessment problem
➢ Tax incompliance

1.4. Data analysis from the office employees

The previous section presented the background information and the outcome of the survey result.
The next part focus on the analysis of the outcome of survey along with outcome of the in-depth
interview with tax officers and secondary data in the context of the literature review. The data were
collected through interview.

From the interview made with the tax officers, one of the biggest challenges faced by the authority
is solving the pervasive problem of corruption. Undesired communication of tax auditors with
taxpayers was the major challenge that the tax administration is facing. For one thing, there is
constant interaction between taxpayers and tax officials since taxpayers have to file returns
physically. This interaction encouraged the two parties to negotiate tax liability. They also are
facing problems in identifying corrupted tax officers since corruption networks develop and go
undetected. Furthermore, some of the tax officers are suspected to be accountants for some of the
taxpayers. Moreover, the lack of close and unreserved follow up by law income accomplisher and
controlling process in connection with different tax related activities are the main problems. When
the taxpayer presents income that is understated, the taxpayers will be penalized. However, the tax
officers are facing challenges due to the absence of any stated parameter to say a certain
understated amount as substantial or not. Therefore, this created a loophole for some undesired
bargaining and behavior between taxpayer and tax officer. Besides, there is no clear collaboration
of information through computerized system, because mostly assessments are done manually, so
lacks accuracy, efficiency and effectiveness. Furthermore, lack of competency, degree of
satisfaction of employees and unwillingness to delegate responsibility in the city administration.
Due to this audit functions are delayed. The quality of audits made by the officers of the tax office
is affected by lack of sufficient comprehensive audits. Furthermore, tax audits in most cases have
been conducted manually. Manual verification of taxpayer information is not only susceptible to
mistakes by revenue officers, but also slows down the auditing process. Besides, they are
aggressively suspicious about the reliability of the statements prepared by taxpayers, which has
influenced the tax attitude of the taxpayers that is a key factor in tax compliance. In addition to
this, tax officers lack uniform and satisfactory responses for the taxpayers’ questions. Taxpayers
do not timely keep adequate record for the purpose of assessment. There is inconsistency in record
keeping by taxpayers. Most of taxpayers do not timely submit books of record for assessment
purpose; taxpayers are not paying their debt as soon as they received assessment notification.
Sometime taxpayers rise irrelevant and taking points then they appeal top review committee
through core process owner for the purpose of getting additional time, and execution of reduction.
Taxpayers have limited ability regarding tax knowledge and competent accountants to keep
accounts. It is also observed that there exist lacks of sufficiently educated taxpayers with poorly
trained employees. Taxpayers perform deliberate submission of nil returns. Tax payers do have
problems regarding the acceptance of the statement that they believed was maintained properly. It
is also observed that taxpayers prepare of financial statement showing low profit for the sake of
paying reduced corporate profit tax and even there is also no willingness to submit complete
financial documents for audit. Preparation and maintenance of accounting records by unqualified
individual and without license is also one factor that affects the income tax administration.
Taxpayers continuously complain on the bureaucratic civil service procedures existing in the tax
office, when they went there for getting support or complain about different situations at their
hand. The major causes for the aforementioned challenges or problems on profit tax administration
are:

 Absence of willingness and poor understanding about tax proclamations, rules and
regulations by taxpayers
 Lack of paying attention to follow up the frequent government policies
 Confusion due to frequent change of policies
 Delayed tax assessment process by the authority
 Lack of sustainable educative promotion by the government
 Lack of sufficient, incompetent and motivated tax officers
 The bureaucracy of offices
 Lack of close follow up by law income accomplisher and controlling process
 Unwillingness to give clear information by taxpayers
 Lack of willingness to provide information by third party
 Lack of awareness of the applicable tax proclamations and laws by taxpayers and few tax
officers
 Complexity in understanding tax laws and proclamation

Regarding about VAT assessment and collection problems, Due to lack of manpower, Jigjiga city
Administration tax officers are not able to follow up whether all taxpayers declared and paid tax
for each tax period since they have registered. In addition, they are not able to make sure that
whether all taxpayers that must be registered were really registered. Due to this there exist
taxpayers, who collect tax from customers but not identified properly. Furthermore, the study
found out from the interviews that some of the tax officers have no clear vision of their duty and
responsibilities. Moreover, the tax collectors did not have adequate skills. The tax office is unable
to follow up whether printing presses prepare invoices based on the given permission letters.
Besides, it is unable to follow up the use of illegal invoice by the taxpayers. From the interview
made with tax officers, the decision-making process within the core process show that it is not
participatory. This may force the subordinates not to take part in the core process activities and
lack of willingness to implement decision. It also creates conflict within the core process, which
hinders the effectiveness of the core process. The organization also gives less attention on
employee training and personal development. There exist lack of identification of documents and
shortage of strict assessment system. This failure has an impact on collection.

The major causes for the aforementioned assessment and collection problems are summarized as
follows:

 Inefficiency and ineffective organized computerized system in tax administration

 Lack of adequate skills and absence of willingness and poor understanding about the
concept of tax by tax payers
 Frequent change of taxpayers address without acknowledgement of the office
 Lack of willingness to provide information by third party
 Lack of sufficient, competent and motivated tax officers
 Inflexibility of the software in use
 Absence of frequent discussion concerning various problems encountered in the tax office
 Complexity of the tax laws and proclamation

Regarding about Rental income tax assessment and collection problems, One major problem
observed from the tax office was lack of stiff search and control of registered and unregistered
rental income taxpayers due to insufficient number of employees to perform this duty. The major
causes for the rental income tax assessment and collection problems are as follows:

 Insufficient number of tax officers

 Lack of commitment by tax officers to exercise duty adequately
 Poor tax attitude by taxpayers