ASSESSMENT OF CHALLENGE ON BUSINESS INCOMETAXCOLLECTION ON CATEGORY “B” TAXPAYERS (A CASESTUDYATWOLKITE TOWN REVENUE AUTHORITY OFFICE)

Abstract

This study is conducted on assessment of challenge on business income tax collection in categoryB tax payer that is found in Wolkite revenue office. So the main objective of this studyistoassess the challenge in business income tax collection in respect to category "B" tax payers that are found in Wolkite. To conduct the study primary data were used and collected byusingquestionnaires and personal interview. Student researcher used stratified sampling techniquestoselect the respondents and student researcher used descriptive method of data analysis thedatagather from respondents. Based on the result of the study, the implemented businesses incometax collection system is not successful as a result of the following problems. Inadequate support from tax administration, operation inefficiency due to absence of computerized technology, lackof awareness, insufficient study on tax problem in preparation of books of account andlackofwell trained and skillful tax officers to implement the tax system successfully. Therefore toavoidthese critical problems and achieve the desired goals it needs strong communication betweentaxpayers and tax officers as well as strong commitment in the side of both tax payers andtaxofficers.