Determinants of Tax Administration Efficiency in Addis Ababa Revenue Authority: In the Case of Selected Small Taxpayer’s Branch Offices

Abstract

Taxes are the main revenue for the government and thus the department or agent concerned should ensure they are collected in the right way. The objective of this study was to examine factors that determine tax administration efficiency in Addis Ababa Revenue Authority in the case of selected small taxpayers’ branch offices. In this study a quantitative research method was employed and primary data was collected through questionnaire. The study employed cluster random sampling method and selected186 employees working in selected branch offices. The collected data was analyzed using multiple linear regression so as to predict the effects of effect of autonomy, leadership style, employees’ training, employees’ motivation and ICT on tax administration efficiency. The findings showed that leadership style, employees’ training, employees’ motivation and ICT have positive and statistically significant effect on tax administration efficiency. The study recommended increasing the qualities and quantities of the training program offered to employees and having recognition and promotion programs that can motivate good performers.