CHALLENGES AND OPPORTUNITIES OF ADOPTING E-TAX SYSTEM IN THE CASE OF SMALL TAX PAYERS IN NIFAS SILK LAFTO SUB CITY, ADDIS ABABA

Abstract

This research aimed to investigate challenges and opportunities of adopting electronic tax system in case Small Tax payers of Nifas silk lafto sub city, Addis Ababa. To achieve this objective, the study applied descriptive design and survey data were gathered from 156 respondents used stratified sampling technique. Surveyed data were processed using SPSS and use descriptive statistics. The finding revealed that e-tax system promote the tax payers satisfaction and saved time and cost by avoiding emotional stress due to long queue and make them efficient and effective as they can administer their own taxes and create flexibility to timely recording tax credit and to refund tax any time .The study also indicate that some of the practical challenges that small tax payers face while using e-tax system are; unreliable e-tax service, system inefficiency as it isn‘t fully operational and the e-tax is not also very well supported with e- payment supplementary system , so taxpayer still forced to go to tax office. The Study recommended that tax authority increase the excellence of system fully launched by provide electrically registration, clearance and payment system.