This study assessed presumptive income tax assessments of micro and small businesses in Addis Ababa, Ethiopia. In 2017, 148,514 businesses were reassessed, with 60,116 categorized as "C" taxpayers. After notices of estimated taxes, taxpayers protested assessments. The study aimed to understand the gaps in the assessment process and taxpayers' perceptions. Key findings include gaps in committee selection/training, indicators used, and taxpayers hiding information. Over half of taxpayers perceived assessments as unfair. The majority of complaints were resolved by maintaining or reducing initial assessments. Recommendations focus on improving assessment procedures, training, and establishing independent complaint processes.
Setting up Solid Internal Controls & Accounting ChangesNFCACoops
Marty Huban (Brazee & Huban CPAs) presented at NFCA's Peer Finance Department Training, sharing best practices for establishing and maintaining strong internal controls, changes in accounting rules, and best practices in financial reporting for Co-ops.
MEASURE WHAT MATTERS TO YOUR FIRM'S BOTTOM LINE WITH FIRM CENTRALTraklight.com
Join us at noon in Salon A3 at the ABA TECHSHOW on March 16th to discuss how to measure what matter to your law firm's bottom line with law practice management software, FIRM CENTRAL. Key Performance Indicators (KPIs) for law firms
Quality and Outcome Framework (QOF) is a voluntary annual incentive programme for GPs in England, detailing practice achievement results. The primary objective of QOF is to drive the quality of primary care and reduce variations in the quality of care amongst GPs
The Effect of Accounting Information System (AIS) Practice in the Collection ...inventionjournals
Accounting information system (AIS) is a system of collecting, storing and processing financial accounting data that is used by decision makers. The major objective of the study were to assess the Accounting information system (AIS) practice in the collection of Value added tax (VAT) in the case of Wolaita Sodo and tercha town tax revenue authorities. Therefore, the research design which have been selected for this study was descriptive .The sample size under this study were selected only some portion of the management and employees of the authority and also some portion of active customers of the authority, by using in some extent judgmental and mainly simple random sampling technique .The total all over data has been collected by using primary and secondary data collection methods. Data collection from the selected population has been through questioner and interview. After the data have been collected, the overall data were analyzed by using descriptive data analysis techniques. The authority did not create adequate awareness on the application of AIS to VAT payers and employees. It did not update the skill of its employees. Wolaita sodo and terch town tax revenue authority offices were also not much realized the awareness creation of purposes and benefits of AIS. Therefore, the authority should create adequate awareness to the society (VAT payers and employees) about AIS practice in VAT collection; the organization should also hire those highly skilled, flexible and experienced employees and should use advanced AIS application to effectively implement in VAT collection process
Setting up Solid Internal Controls & Accounting ChangesNFCACoops
Marty Huban (Brazee & Huban CPAs) presented at NFCA's Peer Finance Department Training, sharing best practices for establishing and maintaining strong internal controls, changes in accounting rules, and best practices in financial reporting for Co-ops.
MEASURE WHAT MATTERS TO YOUR FIRM'S BOTTOM LINE WITH FIRM CENTRALTraklight.com
Join us at noon in Salon A3 at the ABA TECHSHOW on March 16th to discuss how to measure what matter to your law firm's bottom line with law practice management software, FIRM CENTRAL. Key Performance Indicators (KPIs) for law firms
Quality and Outcome Framework (QOF) is a voluntary annual incentive programme for GPs in England, detailing practice achievement results. The primary objective of QOF is to drive the quality of primary care and reduce variations in the quality of care amongst GPs
The Effect of Accounting Information System (AIS) Practice in the Collection ...inventionjournals
Accounting information system (AIS) is a system of collecting, storing and processing financial accounting data that is used by decision makers. The major objective of the study were to assess the Accounting information system (AIS) practice in the collection of Value added tax (VAT) in the case of Wolaita Sodo and tercha town tax revenue authorities. Therefore, the research design which have been selected for this study was descriptive .The sample size under this study were selected only some portion of the management and employees of the authority and also some portion of active customers of the authority, by using in some extent judgmental and mainly simple random sampling technique .The total all over data has been collected by using primary and secondary data collection methods. Data collection from the selected population has been through questioner and interview. After the data have been collected, the overall data were analyzed by using descriptive data analysis techniques. The authority did not create adequate awareness on the application of AIS to VAT payers and employees. It did not update the skill of its employees. Wolaita sodo and terch town tax revenue authority offices were also not much realized the awareness creation of purposes and benefits of AIS. Therefore, the authority should create adequate awareness to the society (VAT payers and employees) about AIS practice in VAT collection; the organization should also hire those highly skilled, flexible and experienced employees and should use advanced AIS application to effectively implement in VAT collection process
Sales and Use Tax Process: Benchmarks and Best Practices for RetailersSovos
Nearly half of all retailers have not established KPI’s for to measure their sales tax process. Those that do are leading the way with a more strategic approach to compliance. Watch the on demand Webinar (see slide 4) to understand what they are doing.
View our webinar on demand to learn:
Challenges and risks for retailers
Performance benchmarks to help understand how you compare to your peers
Strategies and drivers for change
How leaders are leveraging technology to achieve superior results
Hospital / Technology / Revenue / Business
This is the approach for success in terms of workflow, revenue, and technology effeciency in HIT (Healthcare Information Technology).
Regulatory Outlook: Knock MACRA Out of the ParkKareo
Review the latest changes to the regulatory landscape, including HIPAA, MACRA, and the NC HIE. Learn how these changes impact your clients and your business.
Webinar creating a_compensation_calendar_everyone_lovesPayScale, Inc.
Compensation is one of the many critical areas of responsibility for most HR teams, and having a well-planned compensation calendar is a key component to your talent strategy.
This webinar will guide you through a typical compensation calendar so you can determine:
The best time to create a comp calendar
How to improve upon your talent planning processes for the coming year
How to integrate your compensation calendar with other responsibilities such as recruitment and benefits
This webinar is approved for 1.0 HRCI re-certification credit.
Katherine Cxypoliski of Avalra offered a much needed and often underestimated topic, the impact of global taxation issues on ecommerce and business generally, at the 2nd Annual eCommerce Expo South Florida sponsored by Rand Marketing in Fort Lauderdale, Florida.
The presentation focused on sales tax challenges, including why sales tax matters, product taxability, how to automate the process, sales tax compliance challenges, and taxation issues as they relate to zip codes and geolocation.
Designed the 80/20 fully Integrated tax system for South African Revenue Serv...San-Mark Antonio Trimble
This project was presented to demonstrate how effective the ICA business model helped to enhance the SA Revenue Services - Increase tax collections, while eliminating tax evasion, fraud and also minimize human intervention. Proposals also made to the SADC countries to improve their tax systems.
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Presentation on data challenges and collaboration relating to the e-Levy in Ghana.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation of study on the impact of the mobile money tax on the usage, demand, and perception of mobile money services of Micro and Small Enterprises (MSEs) in Tanzania.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
More Related Content
Similar to Where the Gap Lay: Presumptive Income Tax Assessment for Micro and Small Enterprises a Case Study in Addis Ababa City Administration
Sales and Use Tax Process: Benchmarks and Best Practices for RetailersSovos
Nearly half of all retailers have not established KPI’s for to measure their sales tax process. Those that do are leading the way with a more strategic approach to compliance. Watch the on demand Webinar (see slide 4) to understand what they are doing.
View our webinar on demand to learn:
Challenges and risks for retailers
Performance benchmarks to help understand how you compare to your peers
Strategies and drivers for change
How leaders are leveraging technology to achieve superior results
Hospital / Technology / Revenue / Business
This is the approach for success in terms of workflow, revenue, and technology effeciency in HIT (Healthcare Information Technology).
Regulatory Outlook: Knock MACRA Out of the ParkKareo
Review the latest changes to the regulatory landscape, including HIPAA, MACRA, and the NC HIE. Learn how these changes impact your clients and your business.
Webinar creating a_compensation_calendar_everyone_lovesPayScale, Inc.
Compensation is one of the many critical areas of responsibility for most HR teams, and having a well-planned compensation calendar is a key component to your talent strategy.
This webinar will guide you through a typical compensation calendar so you can determine:
The best time to create a comp calendar
How to improve upon your talent planning processes for the coming year
How to integrate your compensation calendar with other responsibilities such as recruitment and benefits
This webinar is approved for 1.0 HRCI re-certification credit.
Katherine Cxypoliski of Avalra offered a much needed and often underestimated topic, the impact of global taxation issues on ecommerce and business generally, at the 2nd Annual eCommerce Expo South Florida sponsored by Rand Marketing in Fort Lauderdale, Florida.
The presentation focused on sales tax challenges, including why sales tax matters, product taxability, how to automate the process, sales tax compliance challenges, and taxation issues as they relate to zip codes and geolocation.
Designed the 80/20 fully Integrated tax system for South African Revenue Serv...San-Mark Antonio Trimble
This project was presented to demonstrate how effective the ICA business model helped to enhance the SA Revenue Services - Increase tax collections, while eliminating tax evasion, fraud and also minimize human intervention. Proposals also made to the SADC countries to improve their tax systems.
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Taxation ii (covering FA -2016) part-2 ICAB Application Level
Similar to Where the Gap Lay: Presumptive Income Tax Assessment for Micro and Small Enterprises a Case Study in Addis Ababa City Administration (20)
Presentation on data challenges and collaboration relating to the e-Levy in Ghana.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation of study on the impact of the mobile money tax on the usage, demand, and perception of mobile money services of Micro and Small Enterprises (MSEs) in Tanzania.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on a study aiming to highlight significant events relating to the introduction of the e-levy in Ghana and investigate the effects.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on the Transaction Cost Index Study, a multi country study exploring the costs consumers face when making mobile money transactions, with research in Tanzania, Bangladesh and Uganda.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation on a study investigating the impact of mobile money taxes on mobile money agents. The researchers have analysed the impact of the new 0.2% tax on mobile money transactions in Cameroon implemented on January 1, 2022 on agents’ survival, profitability, sustainability, and future strategies.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward".
Presentation of a study looking into the increasing use of electronic payment technologies in low-income countries (LICs), with a particular focus on the use of mobile money in Ghana. The study evaluates the effectiveness of tax exemptions for incentivising businesses and customers to adopt digital merchant payments, and shaping their perceptions of the tax system.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward"
Presentation on a Comparison of Taxation of DFS Versus Traditional Financial Services in Nine African Countries.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward
Presentation on a study that investigated the intricate dynamics surrounding the implementation and reception of mobile money taxes, focusing on Ghana as a case study.
Presented at the GRA & ICTD conference "Taxing Mobile Money: Lessons and Ways Forward"
Presentation on digital merchant payments as a medium for tax compliance at the Rwanda Revenue Authority Quarterly Research Workshop.
Access the related paper 'Digital merchant payments as a medium for tax compliance' at: https://shorturl.at/GS029
Presentation at a Better Than Cash Alliance learning session. The presentation is based on this DIGITAX working paper: https://bit.ly/41ZWYPZ
-----
Hosted by the United Nations Capital Development Fund (UNCDF), Better Than Cash Alliance is a partnership of more than 80 governments, companies and international organizations that accelerates transition from cash to responsible digital payments to help achieve the Sustainable Development Goals.
UNCDF is the United Nations' flagship catalytic financing entity for the world's 46 least developed countries (LDCs).
Presentation by John Walugembe, Executive Director, Federation of Small & Medium-sized Enterprises (FSME) – Uganda
at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Hon Alhaj Kaddunabbi Ibrahim Lubega, Chief Executive Officer, Insurance Regulatory Authority of Uganda at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Keith Kalyegira, Chief Executive Officer, Capital Markets Authority, at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Remarks by Mr Deo Kayemba, Executive Board Chairman, the Uganda Manufacturers Association (UMA) at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Christopher Wales, Senior Research Advisor, DIGITAX Research Programme, at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Christopher Wales, Senior Research Advisor, DIGITAX Research Programme, at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Christopher Wales, DIGITAX Research Programme, at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Presentation by Mr John Musinguzi Rujoki, Commissioner General, Uganda Revenue Authority (URS), at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Remarks by Dr Michael Atingi-Ego, Deputy Governor, Bank of Uganda at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
Opening speech by Mr Ramathan Ggoobi, Permanent Secretary/Secretary to the Treasury at the Conference on Reshaping the tax system to support the Financial Sector Development Strategy (FSDS)
Kampala, Uganda, 14th–15th December 2022
The two-day conference was convened by Uganda's Ministry of Finance, Planning and Economic Development, and co-hosted by ICTD's DIGITAX Research Programme and TaxDev.
More from International Centre for Tax and Development - ICTD (20)
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
3. Rationale of the study
Objective of the study
Methodology
Major Findings
Policy Recommendation
4. In 2017 Addis Ababa city Administration Revenues
Authority reassessed the income of 148,514
businesses of which 60,116 business categorized
under category “C" tax payers’ bracket.
After notices were issued on the results of the
estimates and taxes imposed there on, there was
tremendous uproar by tax payers.
5. Meanwhile, ERCA stated that the estimations
were made fairly and meticulously.
This clearly shows the existence of conflicting
views between the concerned authorities and the
tax payers regarding the issue.
It is this conflicting views that prompted the
researchers to conduct a research on the issue to
understand where the gap lay.
6. The overall objective of this study is:
To assess the over all presumptive tax assessment
processes and Procedures.
To describe the perception of the tax payers on
Tax Payment and on fairness and equitability of
tax imposed.
To investigate underlying causes for tax payers’
complaints.
To describe the appropriateness of the remedial
action taken by the tax authority.
7. Descriptive survey design was used.
The required data for the study was acquired
using survey method and in-depth interviews with
tax officials.
• Given the available time and resources, a sample of 1,980
micro and small business taxpayers was selected from a
population of 60,116.
• The close ended questionnaires response were analyzed
by using SPSS version 20 and summary of open ended
and in-depth interview results were also presented in
alignment with the SPSS output.
11. S.N
o.
Branch Office New Entrants Not Assessed Based on the
Previous Presumptive Income Tax
Assessment
1 Arada 302
2 Addis Ketema 482
3 Nefas Silk Laphto 1732
4 Gulelle 529
5 Bole 1668
6 Yekka 871
7 Kirkos 185
8 Lideta 102
9 A/Kality 571
10 Kolfe 975
11 Merkato#1 971
12 Merkato#2 42
12. Gaps Before Conducting the Assessment
Most selection criteria of the average daily sales
estimation committee lack objectivity and
concreteness.
Members lack technical knowledge and experience
to assess all type of businesses.
The training given was not sufficient to make the
committee confident enough for the task.
There was no guiding principle or written manual
given to them which clearly states as to how to make
average daily sales estimate and how to solve
possible problems encountered during average daily
sales estimation.
13. No practical demonstration or pilot test conducted
before the implementation of the actual assessment.
The authority did not make any market assessment
before the estimation.
City administration was rushed in to average daily
sales estimation before creating sufficient
awareness among tax payers about average daily
sales estimate and the tax imposed there on.
53.8 % of respondents replied that they didn‘t
receive explanation from the tax authority as to
how their respective average daily revenue was
estimated and the tax imposed there on is
calculated.
14. Gaps While Conducting the Assessment
The members of the committee are not fully aware of
indicators and only few of them were used in the
process. Predominantly these include condition of the
business, location of the business, information provided by
tax payer and items available for sale /services available to
customers.
65.2% of the tax payers replied that the indicators
are not enough to capture data on daily sales
estimate. This is because, tax payers believed that:
Indicators were not exhaustively identified; and
objective indicators were not included.
15. Power fluctuation was not considered in the
process of calculating average daily sales.
Seasonality of the product they sell to the market
was not included as a factor.
The delay caused during the supply of the input
was not taken into account
16. Direction was given by high officials to implement
the Pyramid concept.
The time allotted for daily sales estimation was not
enough. Initially order was given by the tax
authority to a committee to estimate average daily
sales of 40 businesses per day, Later on, 15-20
businesses per day which still are unattainable. To
attain this, some members believed that there were
committee members who estimated the average daily
sales carelessly or recklessly to meet the minimum
threshold.
17. Identified Gaps caused by tax payers
during the course of the assessment.
Merchandises were removed and hidden from
shopping shelves
Inaccurate and inappropriate information was
provided
Businesses were purposely closed to avoid
assessment
Placing inappropriate person in the shop who is
unable and inappropriate to provide the required
information
19. The majority of respondents (79.9%) replied that the
average daily sale estimates and taxes imposed
thereon lack fairness.
The average daily sales estimation committee also
confirmed that the initially assessed average daily
sales estimation results were high and beyond the
ability of the tax payers to pay. This is because:
20. Indicators that the committee used were not adequate
enough and are difficult to apply consistently across all
business;
Rejection of information provided by the tax payer
regardless of its reliability.
A clear interference from high officials by giving
direction to the committee to put most of category ‘C’ tax
payers in to Category ‘B’ tax payers .
The number of days assigned to carry out the assessment
was not enough.
21. Perception on Tax Payment, Equitability of
Average Daily Sales Estimation and Tax imposed
there on among tax Payers
22. 66.9% of the respondents replied that paying tax is
an honor.
67.8% of respondents believe that the tax imposed
on them is not equitable compared to other similar
businesses as theirs.
Tax officials also confirmed that , since business
engaged in the same operation, in the same
geographical area were assessed by different
committees , different assessment amounts were
reached.
24. 52% (31, 311) have lodged complaint application
to the Authority up to Tikimit 30,2010 E.C(Nov.
9/2017).
99.91% of the complaints have received
decisions.
18,312 [58.55%] of the complaints were settled
by maintaining the previous assessment
12,962[41.45%] of the complaints were settled
by improving the previous assessment based on
relevant evidences.
25. Statements Yes No Total
Did you get appropriate and timely
response from the Compliant Hearing
committee at different levels?
380
(26.1%)
1077
(73.9%)
1457
(100%)
Do you believe that the response given by
the Compliant Hearing committee is
sufficient or satisfactory?
246
(16.9%)
1211
(83..1)
1457
(100%)
Is there tax deduction given to you after
the appeal?
900
(61.8)
557
(38.2%)
1457
(100%)
If the deduction were given to you, was it
satisfactory?
205
(22.8%)
695
(77.2)
900
(100%)
27. From the tax payers perspective:
Fairness and Equitability
From the tax Officials perspective
Lack of awareness, confusion among tax payers , a
tendency of considering yearly revenue as taxes.
Attitude or behavior of tax payers in sticking to pay
tax based on the previous assessment.
Limitless or extreme willingness of tax authority to
entertain complaints without costing the tax payers.
Resistance from tax payers to change their category
from category C to A or B because of tax compliance
cost.
28. Business engaged in the same operation , in the
same location were assessed by difference
committees with different amounts.
Since many traders have been running the
business by leasing license from others, operators
and license owners (actual tax payers) are
different. Complain was presented by license
owners whose tax and trade literacy is low.
30. These recommendations are meant to initiate actions which
could improve the situation for both tax payers and Ethiopian
Revenue and Customs Authority include:
If the currently implemented average daily sales estimation
method which is turnover base standard assessment or
indictor based estimated assessment is to be implemented in
the future it has to be supported by long-term, coordinated
and comprehensive plan.
The authority should implement Permanent Presumptive
income tax assessment as required by the law (every three
years) in order to avoid the mentality of compensating lost tax
by the tax authority by imposing higher turnover growth rate
on tax payers which resulted in frustration of tax payers.
31. If the Authority is unable to undertake the daily sales
estimation (on timely basis) on every three years, it
should change to tax imposed in the previous years
by making upward increase for inflation rate,
economic growth rate and other economic factors.
The directive should incorporate objective and
concrete parameters that indicate average daily sales
The authority should design and implement effective
tax payer’s education and training sessions before
implementation of new legislation, regulations and
directive .
32. Assessors’ team needs to be composed peoples
having technical knowledge and ample experience
and incorporate individual from the authority and
business society.
The team has to be well trained and conduct
practical demonstration or pilot test before the
implementation of average daily sales estimate.
The presumptive tax assessment needs to be more
equitable and fair. Thus businesses engaged in the
same operation and in the same location should
be assessed by same committee.
33. The authority needs to be Install appropriate
independent administrative tax complaint process .
This is because:
Cost of Complaint hearing process extremely
expensive.
It allows taxpayers to challenge assessment or
decisions made by tax officials where they believe a
mistake has been made.
Complaints should be considered by persons
independent of the tax officials
34. In the process of resolving tax complaints of tax
payers, mandate should be given to complain
hearing committee to increase over and above
initial assessment during the time of re-
assessment if the average daily sales estimate is
over and above the initial estimate.