Ethiopian Tax Administration Lecture notes in ppt

1. Tax Administration
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2. 2
 How to improve compliance?
 There are two theories
◦ Deterrence based theory: Increase in tax penalty would lead to
increase in tax compliance and vice versa.
◦ Psychology based theory: improved tax education would
increase tax compliance and vice versa. psychological factors
(taxpayers’ morals and ethics).

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4.  The battle for
◦ autonomous institution
◦ institutional capacity building
◦ Modernized tax administration
 The intermediate policy
 On one hand,
◦ It favour voluntary compliance – self assessment/ declaration
◦ Protections given for tax payers
 On the other hand,
◦ Prerogative powers- inspection, intelligence, seizure, foreclosure sale
◦ Burden of proof
◦ Authority favoured dispute resolution procedure
◦ Advance rulings
◦ Assessment
◦ Fight underground economy
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5. ◦ Major duties of taxpayers
 Registration: art. 9 of TAP
 Notification of change: art. 10 of TAP
 TIN: art. 12-15 of TAP
 Document related Obligations: art. 17-20 of TAP
 Declaration : art. 21-24 of TAP
 Collaborate assessment and collection: art. 25-29 & 38-48 of TAP
 Payment of tax and other amounts: art. 30- 37 of TAP
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6. ◦ Major duties of tax authorities
 Diligence and honesty: art. 6 (1&2) of TAP
 Avoid conflict of interests : art. 6 (3&4) of TAP
 Confidentiality of information: art. 7 of TAP
 Assure credit, refund and release of taxpayers: art. 49-51 of TAP
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7. ◦ Major duties of tax stakeholders
 The duty to coordinate
 The duty not to aid and abet
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8.  Liabilities
◦ Administrative penalties: art. 101- 115 of TAP
◦ Criminal: art. 116 - 133 of TAP
◦ Civil
 Rewards : art. 134 - 135 of TAP
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