GLOBAL BRIGDE COLLEGE
DEPARTMENT OF MANAGEMENT
ASSESSMENT OF TAX COLLECTION PROBLEMS IN THE CASE
STUDY OF GAMO GOFA ZONE ZALA WOREDA REVENUE
AUTHORITY OFFICE
A RESEARCH PROPOSAL SUBMITTED TO DEPARTMENT OF
MANAGEMENT IN PARTIAL FULFILLMENT FOR BACHELOR
OF ARTS (B.A) DEGREE IN MANAGEMENT
BY
MEKEDES DANIEL
[Link]: 055/12
ADVISOR: ASKETEL (Phd)
MARCH, 2023
WOLIATA, ETHIOPIA
Table of content
CHAPTER ONE
1. INTRODUCTION
1.1. Background of the study...........................................................................................1
1.2. Back ground of Organization……………………………………………………..2
1.3. Statement of the problem..........................................................................................3
1.4. Objectives of the Study.............................................................................................4
1.4.1. General objective...............................................................................................4
1.4.2. Specific objectives.............................................................................................4
1.5. Significance of Study................................................................................................5
1.6. Scope and Limitation of Study.................................................................................5
1.6.1. Scope of Study...................................................................................................5
1.6.2. Limitation of Study............................................................................................5
1.7. Organization Paper...................................................................................................6
CHAPTER TWO.................................................................................................................6
2. LITERATURE-REVIEW................................................................................................6
2.1. The Review of Taxation (Tax) and Related Problem...............................................6
2.2. Importance of Taxation.............................................................................................7
2.3. Principle of Taxation................................................................................................7
2.3.1. Benefit Principle................................................................................................8
2.3.2. Ability to Pay Principle.....................................................................................8
2.4. Tax evasion and Avoidance......................................................................................8
2.5. Classification of Taxes Based on their Effect on Income.........................................9
2.5.1. Progressive Taxes..............................................................................................9
2.5.2. Proportional Taxes.............................................................................................9
2.5.3. Regressive Taxes...............................................................................................9
2.6. Types of Taxes and Categories of Tax Payers........................................................10
2.6.1. Direct tax.........................................................................................................10
2.6.2. Indirect Tax......................................................................................................12
2.6.3. Categories of tax pay’s....................................................................................14
2.7. Tax administration..................................................................................................14
CHAPTER THREE...........................................................................................................15
3. RESEARCH DESIGN AND METHODOLOGY.........................................................15
3.1. Research Design.................................................................................................15
3.2. Research Methodology.......................................................................................15
3.3. Source of Data....................................................................................................15
3.4. Method of Data Collection.....................................................................................15
3.5. Target Population and Sampling Method...............................................................15
3.5.1. Data Processing and Analysis..........................................................................16
3.5.2. Data Processing...............................................................................................16
3.5.3. Data Analysis...................................................................................................16
CHAPTER ONE
1. INTRODUCTION
1.1. Back ground of Organization
The geographical location of Zalla woreda is 331km far from Hawassa and 265km far from zone
town of Arbaminch. This woreda has different government sectors in order to undertake different
activities to serve the society. Among the sectors revenue authority office is one which as one
government sector and it is established for the purpose of revenue collection that has a greater
contribution for the development of the country. It collects different types of tax such as VAT,
exercise tax, business income tax, property tax, etc…as per the government regulation from
different bodies those are to be taxed as category they are included. As the researcher mention in
the above statement those tax are collected by means of different methods such as awareness and
creation education/seminar should be given to the tax payer and training the office employees if
they do not have full knowledge of to insure a proper collection of taxes.
Government intervention in supply of goods and services is therefore inevitable and can only
be done if the public pay taxes for the production and supply of such goods (Ibid).As citizens
enjoy rights; it is one among their responsibilities to pay tax as well. However, in this days
government and tax payers are facing to collect tax and what it has planned is problem of
government where as the problem of tax payers is the assessment process.
There are a lot of factors from both the government and the governed side, for the above failure.
Therefore, the need to conduct a research on “Assessment of Tax Collection problem of Zala
woreda revenue authority is unquestionably crucial and mandatory to alleviate the problem.
Knowledge of tax laws and regulation may prove a great value in the conduct of one’s personal
finance or land in business situation. However this laws and regulations are not understood by
most tax payers that, still there is a gap in knowledge current trend. For example most people do
not know why they pay tax and to whom benefit they should pay tax. And others, though they
are aware about tax laws and regulation, they deliberately present false information in order to
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pay less tax. Even the government itself is not making necessary changes and modifications on
the tax laws and regulations considering different conditions prevailing in the woreda. Wishing
to provide solutions on the above problems, the researcher is forced to study this issue.
People’s ignorance about tax and their less collaboration with the government and the
governments limited contact with the tax payers and some illegal business deeds are some of the
factors which make the problem still unsolved. Most tax payers pay taxes by estimation, the tax
assessor and tax payers have problems in assessing and imposing tax on tax payer.
1.2. Background of the study
The taxes are the main sources of government revenues. Taxation policies depend on the socio-
economic and political structure of the country. History of Ethiopia system dates back to ancient
time. For examples In the Akxumite kingdom there was a practice of traditional taxation. The
traditional taxation provide for taxes on crops, livestock and livestock product such as wool,
butter and milk (Gebrie 2008, page 2-4).
In Zerayacobs Chronicle it is stated there was taxation at ancient times, however, it was during
Zerayacob time that first tax system introduced. The system was set for those people engaged in
livestock production. The first important reform carried out by Emperor Menelik Towards the
end of the 19th century resulted in the establishment of fixed tithe rather than the undefined and
essentially arbitrary system of agricultural taxes (Gebrie, 2006, page 4-6).
The most important features of the traditional taxation system continued during the relatively
modern administration of Emperor Haile Selasie I (1942 – 1974). The element of the tax system
of this era comprise personal income tax, business income tax, agricultural income tax, land tax,
education tax, health tax, road tax, salt tax, tobacco tax, the tithe, Alcohol tax. The first income
tax of Ethiopia was enact in 1994. The personal and business tax proclamation No 60 of 1944.
Reform income taxation in that it provided a modern structural and legal frame work to the
disorganized primarily system. Proclamation in 107 replaced the first proclamation in 1994 and
this proclamation was replaced by income tax decree No. 19 in 1956 the fourth income tax law
enacted by income tax proclamation no 173 is 1961 and them Proclamation No 255/ 1967 (Ibid).
Personal business income tax where levied, charged and collected under each of the schedule.
Schedule A- Applied to the taxation of income from employment.
Schedule B- applied to income from rent of land and building used for other than agriculture
purpose.
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Schedule C- applied to income from business professional and vocational occupations, the
exploitation of woods and forests for.
Schedule D- applied to income from agricultural activities (Gebrie, 200 page 4,5,6).
The political up heaves of 1975 brought about the abolition of the feudal land tenure system and
the revoke of land taxes and the tithe. The health and education taxes were also cancelled and the
remaining types of taxes were extensively amended and restructured by the Dergue and used
until the traditional governments of Ethiopia amend anew taxation structure. During regime there
was an increase in the coverage of tax bases and tax rates owing to the need to raise more
revenue to support (Ibid).
The income tax proclamation during this period were mainly amendment of the income tax
proclamation No 173/ 1961 and proclamation No 255/1967/ proclamation No 77/1976 and
proclamation No 152/1978 were aimed at changing the income tax structure levied on
agricultural activities. According the tax two proclamations imposed rural and use fee tax on
income from agricultural activity. In line with the socialist ideology of the regime, the rate of
rural land use fee varied for farms and state forms.
Thus, the rate of rural land use fee was as follows.
Every farmer who was a number of agricultural procedure cooperative paid birr 5.
An individual peasant who was not a member of an agricultural procedure cooperative
paid birr 10.
Every state farm paid Birr 12 heat ore under it possession.
To implement the right of nations, nationalist peoples to administrates their affairs the
transaction government of Ethiopia issued proclamation No 7/1992 providing for the
establishment of regional government.
Accordingly, regional government have legislative, executive and judicial power in respect of all
matters within their geographic area except such matter as defense, foreign affairs, economic
policy conferring of citizenship, declaration of state of emergency and printing of currently
(Ibid).
1.3. Statement of the problem
Taxation enables the government to provide administrative and compliance cost. Therefore the
government must guide the tax laws that enables it to collect its revenue efficiently. Taxes are
3
compulsory payment by every person or organization to the government because the main source
of revenue to government without expectation of direct return. Taxes are burden some thus
reduce the economic welfare of individual and business (public) organizations. Because activate
that are finance from taxation is bring benefit to individual or organization( Gebrie, 200 page 4)
According to this zala woreda revenue authority has responsibility to asses and collects revenue
in order to achieve the goal of developing the economy of the woreda. But, they have some
weakness and problem relating to tax assessment and collection that the researcher was found
solution for major problems:-
There is knowledge gap on tax laws and regulations are not understood by most tax
payers.
Even the government is not making necessary changes and modifications on the tax laws
and regulations considering different conditions prevailing in the woreda.
This study will be tried to answer the following research questions.
1. How to tax payer can understand the rule and regulation of tax?
2. What are the cause for the inadequacy of tax assessment and collection?
3. How can we eliminate tax evasion and avoidance problem by the tax payer?
4. What factors to be taken to develop ability of tax payers to consider rich and poor of the
revenue authority?
1.4. Objectives of the Study
While identifying the problem tax assessment and collection related problem of revenue
authority at zala woreda the researcher there will be some general and specific objective.
1.4.1. General objective
The general objective this study will examine the tax assessment and collection problem
according to established regulation of zala woreda revenue authority and problem encountered
by the tax payers and collecting authority.
1.4.2. Specific objectives
The specific objective of the study:-
To provide standard assessment weather it is in accordance with the generating capacity
and actual collection expectation of the tax payer.
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To cheek the existence of tax avoidance and tax evasion.
To assess the tax payers knowledge and awareness about taxation.
To assess the opinion of tax payers about taxation.
1.5. Significance of Study
The significance of this study are:-
To provide positive contribution in finding solution to the focused area.
To develop the researcher experience, how to do another research for future time.
To provide information for employees of the office the area in which their office faces some
problems regarding tax and collection related problem.
To provide awareness to revenue authority and take corrective function for the problems
identifying.
To give awareness to tax payers and encourage compliance of tax payers.
To help the researchers for partial fulfillment of course of seminar in accounting.
To know the tax and collection related problems
It will be used as a bases for another researcher who want to make further study on the area .
1.6 . Scope of the Study
The overall scope of this study will focused on the extent to which the research objectives are
concerned. To avoid discrepancies, ambiguity, misunderstanding and other related problems, in
conducting the research objectives.
The study on taxation is wide and very vast and need long term study so researcher study is
restricted only in problem of tax assessment and related collection problem in zala woreda
revenue authority.
1.7. Limitation o f the Study
As far as limitation is concerned there many constraint which have an impact on the quality of
the study. Most of the constraints are raised from the case of targeted population. Few
employees, tax payers are in doubt to respond neutrally. They hesitate by manager of
organization and government policies. Lack of available organized data conducting research on
the side of the researcher, due to the first undertaking of the study. Due these constraints they
may not be proposed to be acquaint with all detail information.
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1.8. Organization of the Paper
This study will comprises three chapters:- the first chapter which is an introductory section of
the paper which include background of the organization, back ground of the study, statement of
the problem, objective of study, significance of the study, scope of study , limitation of the study
and organization of paper. The second chapter deals with the related literature review. Under
chapter three deals with the research design and methodology(research design, research
methodology, source of data, method of data collection, target population and sampling
method,data processing,and data analysis).
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CHAPTER TWO
2. LITERATURE – REVIEW
2.1. The Review of Taxation (Tax) and Related Problem
A tax is a compulsory levy payable by an economic unit to the government without any
corresponding entitlement to receive a definite a direct quid pro quo from the government. Note
the word direct here, is not a price paid by the tax-payer for any definite service rendered or a
commodity supplied by the government. The benefits received by tax payers from the
government are not related to or based upon their tax payers. A tax is a generalized execution,
which may be levied on one or more criteria upon individuals, groups of individuals or other
legal entities (BL-Bhatia, 2003, 37).
Government at all levels, local state and national, requires people and business to pay taxes.
Government use the tax revenue to pay the cost of police and fire protection, health programs
schools, roads, national defense and many other public services. Tax and taxation are generally
regarded as unpleasant subjects. Justice john stated that “the power to tax is the power to
destroy” represents the rhetorical linkage of tax and tax so inevitable. Taxes are also olds
government. The general level of taxes has varied through the years, depending on the role of the
government. In modern times, many governments as especially in advanced industrial countries
have rapidly expanded their roles add taken on new responsibilities. As a results the need for the
tax revenue has become great. Government can finance their activities by borrowing creating or
obtaining technical assistance from abroad and denotations. Government also secure resources
by profit from public enterprises of from sale of produced on land. But the major services of
revenue to finance public expenditure is taxes (Ibid).
Compulsory contributions by persons or organization to the government with out expectation of
any direct return. Taxes are burden some these reduce the economic welfare of individuals and
business (public) organization. But activities that are financed from taxes will bring benefits to
individuals or organization (Encyclopedia v 1952).
2.2. Importance of Taxation
According to Bernard P. two payers in rent in sovereingt government and regions give the public
sector the authority to institute tax laws. These revenue and police powers of government nicest
authoring to sovereign government control persons and properly for the purpose of promoting
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the general welfare. Most taxes for both revenue and welfare propose. All taxes by nature extert
on income effect since compel drawal of revenue from private sector and reduce the level of
private sector phasing power. A tax can be define as a compulsory contribution from an
individual for the purpose or goal.
Though a single purpose is typically dominated. All taxes by their nature provide revenues to the
government which imposes the taxes. In most instances this the primary motive for existence for
tax. Tax may exist primary for regulator purpose. Tax may be regulatory in either micro
economic since. A regulatory tax designed to discourage the consumption of particular item such
alcholic beverage or to base of product (Bernard p. 1999).
2.3. Principle of Taxation
The pioneer economist like Adam smith who agrees for “laissze fair” which state that the
government minimal governance intervention. However Adam smith acknowledges the role of
the government in the provision of public. In his well know book” the wealth of nation”
publisher in 1776 has stated four principles which called them as canons of taxation they are:-
People should pay taxes according to their abilities (principle with modern economist have
subject to two interpretation) they are the benefit principle and to pay principle can non of
equity. The payment of tax should be clear, certain to the tax payers and the tax collector can not
convenience.
The cost of collection in relation to the tax yield should be minimal cannon of economy. Now
days smith’s canons’ get wider perspective and some are added Todaro (1994) tried to put
factors which the tax potential in to five categories there are:-
The level of per capital income
The degree of inequality in the distribution of that income. The industrial structure of the
economic activity of example the importance for foreign trade, the significance of the
enterprises, the degree to which the agricultural sector is commercialized as opposed to
subsistence oriented.
The social, political and institutional setting and the relative power of different groups (for
example land lord as opposed to manufactures) organization.
The administration competence, honesty and integrity of the gathering branches of government
(Gebrie, 2006, page 20).
There are two basic principle of taxation.
8
2.3.1. Benefit Principle
The benefits principle of taxation states that only the beneficiaries of a particular, government
programs should have to pay for it. The benefits principle regards public service as similar to
private goods and regards taxes, as the people must pay for these services. The practical
application of the benefits principle is extremely limited, because most government services
consumed by the community as a whole. For example, one can not estimate the benefit received
by a particular individual for general public services such as national defense and local police
protection, (Gebrie, 2008 page 21,22).
2.3.2. Ability to Pay Principle
The ability to pay principle holds that people, taxes should be based up on their ability to pay,
usually as measured by income or wealth. One implication of this principle is horizontal equity,
which states that people in equal positions should pay the same amounts of tax. A second
requirement of the ability to-pay principle is vertical equity, the idea that a tax system should
distribute the burden fairly across people with different abilities to pay. This idea implies that a
person with higher income pay more in taxes than one with less income (Grbrie 2008, 20,21).
2.4. Tax evasion and Avoidance
Tax evasion is an illegal method of trying to reduce one’s tax bills. In other word, it is illegal by
redacting tax burden by under reporting income, over stating deduction of using illegal tax
shelters while tax avoidances an attempt to reduce tax liability to minimizing tax burden through
legal means such as tax free municipal bonds, tax shelters because of the loopholes in the tax
laws and the inefficient or corrupt tax administration gives rise to tax avoidance or evasion. It
involves choosing legal form and handling affairs in such away as to taken advantage of legally
permissible alternative tax rate or an alternate method of assessing income. Tax avoidance in
contrast to tax evasion is considered by many to be legitimate aim since it is not illegal but
consists of exploiting the discrepancies and loopholes in the tax law to the further extent. Among
the most common method of tax avoidance are the manipulation of capital gains and losses, the
formation of holding companies to create article deductions and eh creation of multiple trust for
relatives and dependents. Tax avoidance in the case of indirect taxes is high but taxes avoidance
is relatively low because directly taxes, can be easily shifted forward or back ward (Indigo, 2002
and world book 307 and 308).
9
2.5. Classification of Taxes Based on their Effect on Income
Taxes based on their impact on income can be classified as progressive; proportional and
regressive.
2.5.1. Progressive Taxes
The term progressive refers to the way the rate progresses from low to high. The rate of taxation
increase as the tax bases increases. Here as the income or sending increase the marginal rate of
tax increased, income or spending also rises. It is also possible to have a progressive expenditure
tax where the rate of rises with increment to consumption expenditure. People with higher
income tend to increase their spending on items subject of the tax to such and extent that the
payment becomes bigger portion of income Gebrie, 2006, 33)
2.5.2. Proportional Taxes
This kind of tax is whose rate remains constants as the size of the basic increases. A proportional
tax rate is usually stated as flat percentage of the base regardless of its size. These kind of tax in
Ethiopia are seen in the mining income tax proclamation 23/1996, which sates that both large
scale and small scale miner, shall pay 35% of their mining income (Gebrie, 2006 p 32).
2.5.3. Regressive Taxes
This kinds of taxes the marginal rate decrease as increase income. Tax a larger share income
from the low income tax payer than from the high income tax payer. A tax which is technically
proportional interims of the tax bases, can often be considered regressive interims of tax payer
income common examples, an excise tax on cigarette is based on the on, of cigarettes sold
(Green world, 1993).
To summaries the classification of tax by graphically as follows
Tax rate% Progressive
Proportional
Regressive
Tax base
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Tax base (Gebrie, 2006 35).
2.6. Types of Taxes and Categories of Tax Payers
Governments impose many types of taxes. In most developed countries, individual pay income
taxes when they earn money, consumption taxes, when they spend it, property taxes when they
own a home or land, and in some case estate taxes when they die. In general, interms of the
relation ship between the nature of taxes and reason for payment, taxes classified as direct and
indirect taxes (Gebrie, 2008, 28 – 29).
2.6.1. Direct tax
Acceding to dalto, direct taxes are those, which are paid entirely by those persons on whom they
are imposed. Direct taxes are those taxes which can not be shifted to others. Direct taxes are
made up of different individual taxes
personal income tax: are applied to the income of individual and families .
Capital gain tax business profit:- this is tax imposed on the taxable business income or net profit
realized from entrepreneurial activity.
Property tax:- are livied on the value of such property as firms houses, stores, factories and
business equipment property tax first become important in ancient time.
Merits and Demerits of Direct Taxes
Merit of Direct Taxes,
Equitable:- direct taxes such as income tax are equitable because it is based on the principle
progression. Certainty direct taxes satisfy the canon of certainty. The tax payer is certain as to
how much he/she is expected to pay and similarly the tax collector is certain how much it
receive.
Elasticity:- elasticity in direct taxes implies that the government collects more revenues simply
by raising the rate of taxation.
Reduce inequalities:- direct taxes are progressive in nature and therefore, rich people are subject
to his/her rate of taxation, while poor people are exempted from direct tax obligation.
11
Ensures principle of ability to pay:- direct taxes are based on the principle of ability to pay. The
fall more heavily on the rich than poor. The tax burden is distributed on different section of the
social in just and equitable manner.
Control effect of traded cycles:- direct tax control the effect of trade cycles. They can be used as
tool to mitigate the effect of inflection and deflationary trends by raising or reducing the tax rate
(parameswarn; 2005, p. 77).
Demerits of Direct Taxes
In convenience: tax payer should submit the statement of total income along with the source of
income from which is derived.
Evasion: direct tax are certain and tax payers know the rate of tax they have to pay, therefore,
awareness of tax liability to tempts the tax payer to evade tax.
Arbitrary: there is no logical or scientific principle to determine the degree of progression in
determing tax brackets (Gebrie 2008, 29).
2.6.2. Indirect Tax
Indirect tax is often avoidable and not taken from wages. Tax in which the burden may not
necessarily be swallowed by assesses, which means indirect taxes can be shifted on the other
persons (Gebrie worku 2008, 29 and Richard A. Margrave, 2989).
Example indirect taxes areas excise tax, value added tax, turn over tax
Excise taxes levied in respective of goods produced locally and imported good :-
value addied is a tax on customer expenditure. It is broad tax on the consumption of good and
service.
Turn over tax:- would be payable on goods sold and services rendered by persons not registered
for value all tax.
Merits of Indirect Taxes
Convenience:- indirect tax are more convenient to the tax payers.
Wide scope: while the people with income and wealth above a certain limit, are brought under
the levy of direct taxes, indirect taxes are paid by all both poor and rich.
Elastic the revenue from the indirect taxes can be increased or decrease as government need.
Tax evasion is not possible:- indirect taxes are included in the selling price of the commodities
so, evading of such tax become, very difficult.
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Substantial revenue:- indirect taxes yield substantial revenue to both central and states of
government.
Progressive:- indirect taxes can be made progressive by imposing lower rate of taxes or giving
exemption to the necessary article and heavy taxes on luxurious articles (paramesuarn 005, p 79).
Demerit Indirect Tax
Ability to pay principle violated:- indirect taxes are not directly connected to taxpayer ability to
pay.
Uncertainty:- if indirect taxes are not levied on the commodities of common consumption and
levied only on luxurious articles, they tend to be inelastic. The quality demand will be affected
by imposition of the taxes.
Discourages saving:- indirect taxes are included in the selling price of the commodities. Hence,
the people have to spend more on the purchase of the goods. This in turn affect of the saving of
the people.
High cost collection:- indirect taxes are un economical as they involve high cost of collection.
Civic consciousness is not created:- under indirect taxes, tax payer don’t feel burden the tax.
They are not aware of their contribution to the state.
Inflationary:- the indirect taxes causes an increase in the price all around (Ramaswan; Nov, 2005,
70,71).
2.6.3. Categories of tax pay’s
Category “A” tax payers whose annual income about 500,000 birr declare and pay tax after the
budgetary years four months. Thy are obligated to keep books of account and present balance
sheet and profit and loss statement to the tax office.
Category “B” tax payer
Tax payers who are under the threshold of annual turn over income between 100,0000 to 500,00
birr maintain records on books of daily revenue and expenditure and should declare and pay tax
after the budgetary year of carry on know months.
Categories “C” taxpayers
Tax payers whose annual turn over income up to 100,000 birr keep recodes and present it for
assessment. It is highly appreciated by the tax offices and pay tax after the budgetary year of one
month (Gebrie 2006, 64 and 65).
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2.7. Tax administration
Since taxes are an involuntary payment for governmental services tax payers have a strong
inventive to minimize their tax liability either through avoidance (legal) or though evasion
(illegal). Tax administration has to secure compliance with the laws by applying an array of
registration. The ability to tax payers to keep form doing these procedure and thus successfully
avoid to evade taxation determines the sizes and the nature of economy’s actual effective tax
base. Both evasion and avoidance’s seriously compromise the demonstration of the tax system,
producing a system that departs scientifically in its operation from the one that is described on
the tax legislation (Misrak p. 453).
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CHAPTER THREE
3. RESEARCH DESIGN AND METHODOLOGY
3.1. Research Design
So as to put the objectives of the study in to effect, descriptive method will be adopt to observe
tax assessment and collection related problem.
3.2. Research Methodology
The study will be conducted in zala woreda particularly of the revenue authority office tax
assessment and collection related problem. The researcher will be utilized different research
methods and materials in taking in to consideration the variables.
3.3. Source of Data
Primary and secondary data source will be considered and used in the study. Primary sources are
the main source of information for the study, using primary source of data collection through
unstructured interview and questionnaires. The study will be conducted by distributing
questionnaires to the Zala woreda revenue authority employees and tax payer. Secondary data
will be collected data through survey and reviews the document manuals of zala woreda revenue
authority report issued to the employees.
3.4. Method of Data Collection
The study will be collected through by using primary and secondary data, primary data will be
obtained through questionnaires and interview. In order to get required information the
researcher will be selected data collectors and give orientation about the method of data
collection and explanation for the purpose of each item.
Secondary data will be collected from journal documentary record, annual reports periodically,
magazine and other written materials.
3.5. Target Population and Sampling Method
The data will be collected from different groups such as employees and tax payers that have five
year experiences in engaged in tax authority of revenue in zala woreda. In order to collect the
desire data from these group. The sampling techniques used judgment sample of non-probability
techniques. The reason behind selecting these techniques will be less time consuming to get
15
respondents; it enables the researcher to freely select any respondents that he/she thinks best files
to questions.
Zala woreda revenue authority office has about 12 total employees, from 12 employees, 11
employees will be selected from revenue authority office for unstructured interview and
questionnaire and from 93 tax payer 75 tax payers would be selected as sampling. So, as to save
time and cost efficiency and effectively the researcher will be used to tax payer as a sample.
n=N /1+ N (e )² (Jaro, ………………………………..)
Where: N=population
n=sample
e=permitted
3.5.1. Data Processing and Analysis
3.5.2. Data Processing
Data processing implies editing, coding and classification of collected data so as to make suitable
for further analysis. The senior essay paper will be conducted after the collected data are edited.
Coded and classified as per the sampling techniques.
3.5.3. Data Analysis
After the required data are processed classified, gathered, and will be analyzed by using methods
of tabulation and percentages description.
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TIME BREAK DOWN
Activities Months in the year Remark
[Link]- Apr May Jun July Aug. Sep. Oct. Nov. Dec.
1 Purchasing x
stationary
instruments
2 Preparation x
of proposal
3 Submission x
of proposal
4 Data x x
collection
5 Data x x x
analysis
6 Writing up x x
7 Submission x
of 1stdraft
8 Submission x
of 2nddraft
9 Submission x
of last draft
10 Reporting x
final work
17
2.4.2 FINANCE BUDGET BREAKDOWN
No Item Unit Quantity Unit cost Quantity Total
measure price estimated
cost
1 Stationary
1.1 Paper Pk 2 240 2*140 280
1.2 Pen Pc 4 5 4*5 20
1.3 Binder Number 3 12 3*12 36
1.4 Photo copy with Per page - 500 500 500
binder
1.5 Internet
- - 250 250 250
1.6 Flash Sony 1 150 150*1 150
Sub total 1236
2 Personal cost
2.1 Type and print Per page 20 1 1*20 20
2.2 Oral transportation - - 3500 3500
Sub total 3520
TOTAL 4756
18
REFERENCE
1. Bernand P. Herber modern public finalce (5th edition).
2. Dr BL. Bhatia, 2003 public finance 24th revise edition).
3. Dr Ramaswani parames warn Nov, 2005 public finance
4. Gebrie worku 2008, tax accounting in Ethiopia context 2nd edition.
5. Gebrie Worku (MSc) 2006, tax accounting in Ethiopia context 1st edition
6. Misrake Tesfaye, 2008, 1st edition. Ethiopia tax accounting theory and practice.
7. World, book, encyclopedia, vap 1952.
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