Examine the Relationship between Tax Payer Registration and Collection of Turnover Tax Category "B" Tax Payers in Ethiopia, South Gonder Zone

Abstract

No one escapes from tax and death. Tax is the only tool of the government’s fiscal policy; The investigation aims to examine the relationship between taxpayer registration and collection of turnover tax category "B" taxpayers and specifically examine the relationship between taxpayer registration and collection of tax, knowledge of taxpayer and collection and examine the attitude of taxpayer and the collection of tax. An exploratory research design strategy with a mixed approach is applied because data was collected in qualitative and quantitative ways. There are 797 registered categories "B" taxpayers in the zone; from this, 266 taxpayers are selected using the probability simple random method since the population is the same and from 18 Woreda office employees, 36 are determined using the non-probability purposive sampling system, 19 managers also taken as a total 321 samples are selected. Data was composed from primary and secondary sources. Questionnaires and interviews were taken as the primary sources of the data collection method and both published and unpublished materials were used as secondary. The collected data was analyzed using descriptive and inferential statistics. Validity and reliability tests are conducted using the Cronbach alpha 0.822. The findings of the study show that customer knowledge, the convenience of the payment, the attitude of taxpayers and penalties and fines were strong significant relationships and substantial negative correlations between taxpayer registrations and corruption with TOT collection; it is recommended that due to poor ICT arrangement and control tax is not collected. So, the government must aggressively work on ICT infrastructure development, training and awareness creation as a first remedial. The Practical applicability of the findings: Provide valuable insights for policymakers in Ethiopia's tax administration to help identify gaps in registration and collection processes, make informed decisions on targeted registration campaigns, streamline tax collection processes, develop strategies to enhance tax compliance and effective incentives to encourage compliance among category "B" taxpayers. The absence of prior research in the area, the fact that only category "B" taxpayers participated in the study, the fact that only the south Gonder zone was studied, the small sample size, limited generalizability, the scope of the survey since only one zone, the design the researcher choose limit the stud.