Determinants Of Tax Revenue Administration System And Its Effect On Collection Performance A Study On Southern Nations Nationalities And Peoples Regional State Snnprs Revenue Authority

Abstract

Revenue administration is one of the major challenges of governments, especially in developing nations. Tax revenue administration, being one of the government s primary and most significant sources of income for covering the expense of socio-economic activities, is a hell of a lot of government efforts. The broad objective of this study is to investigate the major determinants of the tax revenue administration system and its effect on the collection performance of the SNNPRS revenue authority. The researcher established a hypothesis and conceptual framework based on the literature review. Causal, descriptive, and retrospective research designs were conducted to collect the data. Probability and non-probability sampling approaches and multi-stage sampling techniques were employed, and both primary and secondary data were employed. Primary data was collected through a self-administered questionnaire, in-depth interviews, key informant interviews, and focus group discussions with the revenue authority staff of the regional revenue authority office and seven selected zones from the region. The questionnaires based on sample size were distributed to 106 regional and selected zone staff based on proportional sampling techniques. Descriptive, qualitative, comparative, and econometric analyses were employed for data analysis. The descriptive analysis results revealed that the tax revenue administration system of the region needs improvement and that the system is ineffective. The internal tax audit, internal control system, information communication and technology, and tax system of the revenue authority office are not working well, and also, regarding corruption practices, the result revealed the prevalence of corruption practices in the tax practices and procedures. The multiple regression and probit models were used for econometrics analysis to estimate probability. The Hosmer-Lems show test (HL) was employed to test the model s fitness. The findings of the econometric analysis indicate the level of adequacy of the m