AMBO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE
Challenges of Revenue Collection
In Case of Holeta Town

GROUP 7
Group Name ID
1. Yohannes Alemu ugp/65046/14
2. Dawit Daba ugp/64944/14
3. Eliyas Muleta ugp/64987/14
4. Yoseph Urgess ugp/64987/14
5. Estifanos Ayele upg/65004/14

SUMITTED TO: Tesfaye D. May,2024

Ambo,Ethiopia

Contents
INTRODUCTION 1
 1.1 Background of the Study 1
1.2 Statement of the Problem 1
1.3 Research Question 2
1.4 Objective of the study 2
1.4.1 General objective2
1.4.2 Specific objectives2
1.5 Significance of the Study3
1.6 The Scope of the Study 3
1.7 Limitation of the study 3
1.8 Organization of the study 4
2. REVIEW OF LITERATURE 4
2.1 Definition of Revenue
2.2 Theoretical Literature
2.3 Empirical Literature Review
2.4 Conceptual Framework
2.5 Research Design and Approach
2.6 Research Design
2.7 Research Approach
2.8 Research Method
2.9 Data Analysis Method
3. Time schedules (work plan)
4. Budget
5. References
6. Appendices (I)
1. INTRODUCTION

1.1. Background of the Study

The concept of revenue originated in ancient times from the simple barter transaction involving
revenue and measures the value of such inflows in terms of uniform standards of measurement
such as money. In recent times more complex and uncertain business environment businesses are
faced with the same two tasks relating to revenue. These are to determine when revenue is
realized and the dollar amount at which it is recognized in the accounting records because of new
and frequently complex ways of structuring business transactions and because of the many new
products and services developed. In recent years revenue recognition has become one of the most
challenging problems in financial accounting. The objective of any businesses enterprise is to
generate income that will provide owners with a return on their investment. The major source of
income for most enterprises is from their operations (the process of generating revenue by
providing goods and services to customers) (Mosich, 1989).

Operation involves the incurring of costs & expenses. Unless a satisfactory level of revenue
generated alone or low level of income will result no matter how cost and expenses should be
carefully controlled.

The FASB has defined revenue as inflow or other enhancement of assets of business enterprises
ongoing major or central operation. Revenue generally results in increase cash and receivables. It
includes sales, fees, gathering receipt, dividends, interest, rents and royalty. A common
definition of realizations is that the process of converting non – cash assets to cash or claims to
cash. In measurement of revenue realization generally means that the measurable transaction
(such as sale) or an event (such as rendering service) has been completed or is sufficiently
finalizes to warrant the recording of earned revenue in the accounting records (Mosich, 1989).

1.2. Statement of the problem

Lack of adequate basic public services is one of the biggest obstacles to development. To
alleviate these economic problems governments spend money. However a budget deficit has
placed a high burden on local governments to meet the service delivery and infrastructure needs
of a growing population. There is a growing consensus to reduce poverty in the towns. This in

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turn generates larger financial resources local governments need to invest in the wellbeing of
their dwellers. Like other small towns Holeta town didn't grow as it is expected. Investment is
low and infrastructure is not expanded in the town as it is expected. In order to expand basic
services and public infrastructures it needs enough money to spend. Tigistu Beyera (in 2005) was
investigated about the challenges of revenue collection in Dessie town. On his study he found
that the major challenges are the inability of the revenue administration in implementing the tax
laws and low skilled tax collectors. In addition the study also concludes that the behavior of tax
payers is not favorable to tax collectors.

In this study the researcher tries to investigate the challenges of revenue collection in Holeta
town. Since a research in this subject is not yet carried out extensively in Holeta town it is hoped
that this study gives a detailed challenges faced by the revenue office while collecting revenues.

1.3. Research questions

In this study the researcher tries to answer the following research questions.

 What are the challenges of revenue collection Holeta town?

 what are the efforts made by the revenue office to overcome the challenges of revenue
collection
 What are the approaches employed to enhance revenue
 How are the attitudes of tax payers towards payment of tax?

1.4. Objectives of the study

1.4.1. General objectives

The general objective of this study is to examine the challenges of revenue collection in Holeta
town.

1.4.2. Specific objectives

The specific objectives of the study are:

To examine the problems of revenue collection of Holeta town.

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 To identify the administrative arrangements used by the revenue office to overcome the
challenges of revenue collection.
To identify the approaches employed by the revenue office to enhance revenue.
To examine the attitudes of tax payers towards payment of tax.
To forward possible recommendations based on the findings of the study.

1.5. Significance of the study

The significances of the study are:

 In order to identify and aware the challenges of revenue collection extensive research
work will be conducted. Hence more and more attention will be drawn and the respected
officials enable to recognize the problem and the result helps to improve the revenue
collection system of the revenue administration.
 It will be hope that this attempt might give some highlights for an interested researcher to
study the problem most profoundly.
 It will contribute to look for a strategy for revenue collection enhancements.
 Finally on the process of justifying the significance of the subject under study the
researcher made all possible efforts to come up with possible recommendations in
regarding the problem.

1.6. The scope of the study

Examining the challenges of revenue collection in all over Oromia Region is very expensive and
time consuming. Hence the researcher is limited only to Holeta town. So it is not the purpose of
this study to generalize the conclusion reached to the whole of the region. In addition the study
mostly will focus on tax related revenue sources of the authority. This is because of that other
revenue sources will be less exposed to collection problems and they are relatively small in
amount. So the study will focus on the principal source of government revenue, tax.

1.7. Limitation of the study

The researcher will may be face the following limitations while conducting the research:

 Lack of material & finance.

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  Limited access of reference books related to the study.
 Involuntary respondents to give accurate information.
 Absence of Internet connection and most websites are blocked.

1.8. Organization of the study

This study will be organized in 5 main chapters. Chapter one deals with the introduction part
which includes background of the study, statement of the problem, objectives of the study, scope
of the study, limitations of the study and significance of the study. The second chapter is about
the review of related literature. The third chapter is about research methodology. The fourth
chapter will be budget requirements and action plan of the research proposal.

2. Literature Review

2.1. Definition of revenue

According to Tigistu Beyera's research (2005) Revenue is defined as the gross inflow of
economic benefits during the period arising in the course of the ordinary activities of an
enterprise when those inflows result in increase in equity other than increases relating to
contribution from equity participants. The sales of goods and services create revenue for the
business. That revenue is referred to as sales. The term revenue may also be applied to rents
received from letting out property or interest received from investments made. In the conceptual
frameworks of various contribution of the word revenue the International Accounting Standard
Committee defines revenue in terms of equity or ownership interest.

In common language revenue means tax or income. But in business concern revenue means
proceeds from the sale of goods and services. According to the American Accounting Associate,
revenue is the monetary expression of the aggregate of its customers during a period of time.
When a business delivers goods to its customer during a period of time, it either receive
immediate payment in cash or acquires an account receivable which will be collected and
thereby become cash with a short time. The revenue for a given period is equal to the inflow of
cash and receivables from sales made during that period (Weetman, 2013, as sited by Tigistu).

According to the research conducted by Agerie Amare (2006) Revenue represents an increase in
the portion of owners’ equity known as retained earnings resulting from merchandise sold,

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services rendered, or interest or dividends received. Revenue is derived from operating activities
rather than financing or investing activities.

In the case of governmental entities revenue is the inflow of economic resources to the entity
from taxes, penalties, aids and grants, fees from public services and sale of governmental assets.
(www.fasab.gov/pdffiles, as sited by Agerie).

2.2. Types of revenue

In business there are a number of different revenue types. The most common of these are:

 Sales revenue
 Interest revenue
 Service revenue

2.2.1. Sales revenue

This is the most common form of revenue and simply the revenue that is received from the sale
of goods and services. This sales revenue can range from the simple sale of chocolate in a small
shop to sale of luxury cars in a dealership. This type of revenue makes up the major share of
revenue that most businesses receive

2.2.2. Interest revenue

This type of revenue can be received from the debt investments made by business organizations.

2.2.3. Service revenue

This type of revenue is obtained in businesses that provide services to their customers. This can
be range from a small haircut service to a large hotel service (www.fasab.govpdffiles).

2.3. Source of revenue

Mostly revenue comes from two sources:

2.3.1. Exchange revenue

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When goods are sold or services are rendered in exchange for dissimilar goods or services, the
exchange is regarded as a transaction that generates revenue. The revenue is measured at the fair
value of the goods or services received, adjusted by the amount of any cash or cash equivalents
transferred. Arises when a governmental entity provides goods and services to the public or
another governmental entity for price. Another term for exchange revenue is earned revenue.
Revenue from exchange transaction should be recognized when a goods or services are provided
to the public or another governmental entity at a price.

2.3.2. Non-exchange revenue

Arise primarily from exercise of the government power to demand payments from the public.
For example taxes, duties, fines, penalties and donations. Non exchange revenue includes income
taxes, excise taxes, duties, fines, penalties, and other sources arising from the government's
power to demand payment as well as voluntary donations from other governments and charity
organizations. Non exchange revenues are recognized when a reporting entity established a
specifically identifiable legally enforceable claim to cash or other assets. It is recognized to the
extent that the collection is probable and the amount is measurable (ww.fasab.gov/pfdffiles).

2.4. Gross revenue

Gross revenue include all revenue receipts arising from the course of the business whether they
are recurring or non-recurring in nature. The receipts may be in cash or in kind and should be
part of consideration for goods and services (Misrak, 2008).

The following are some examples of revenue sources:

Sales of merchandise

 Rent of quarters located near factory let out to employees of the factory
 Gain on sale of capital assets
 Surplus on foreign currency exchange
 Wages
 Brokerage and commission fees etc.

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2.5. Exemptions

Exemptions are business revenues on which business income tax is not payable. They are
excluded from gross revenues in the computation of business income tax liability. According to
the Ethiopian tax law the revenue items exempted from business income tax are:

 Awards for adopted or suggested innovations and cost saving measures such as power
saving devices.
 Public awards for outstanding performance.
 Income from activities that are incidental to their operations (Misrak, 2008).

2.6. Revenue recognition

The process of formally recording revenue in the accounting records is called revenue
recognition. Before revenue is recognized it must be realized (or realizable) and measurable with
sufficient reliability. Thus only realized and measurable revenue appears in the income statement
of business enterprises (Mosich, 1989).

2.7. Earning process:

The profit directed activities of a business enterprises through which revenue is earned is known
as the earning process. Such activities may include purchasing, manufacturing, selling, rendering
service, delivering products sold and allowing others to use enterprises resources (Mosich,
1989).

2.8. Conceptual foundations of revenue recognition

Revenue is the measurable value of goods and services that businesses enterprises transfer to its
customer and clients and realization refers to the timing of revenue recognition. A practical
working rule is needed to signal that revenue has been earned as a result of the enterprises profit
directed activities. Each step in the earning process is essential to the earning of revenue. Ideally
delay the revenue recognition should be continuous rather than being tied to a single critical
event (such as the completion of sales transaction) in the revenue generation activities of the
enterprise. In fact increase in the value of goods and services produced by the enterprises takes
place throughout the earning process. However, because continuous valuation of the output is not

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practical, alternative procedures must be found to measure these increase as objectively as
possible in order to measure realized revenue (Mosich, 1989).

2.9. Revenue realization condition

When a business enterprise acquires asset, services accounts assume that an even exchange of
value that is no gain or no loss occurs at the time of equations an arm's length exchange process
viewed as the rest evidence of value received at the time a cost is incurred. When accountants
trace the flow of costs internally, the assumptions of an even exchange to control accounting
procedures. For example the allocation of material, direct labor and factory overhead cost to
investment is limited to the actual costs incurred the fact that there may be increase in the value
of the output beyond the cost added is ignored. However, somewhere along the line reliable
evidence will arise that the value of the output is greater than the cost incurred in producing the
output. When such evidence becomes conclusive the value of the output is measured and revenue
emerges. Thus revenue is recognized in financial accounting at specific stage of the earning
process generally when the following three revenue realization conditions are meeting:

 Sufficient reliable evidence exists to measure the market value of the output. Such
evidence generally is provided by an exchange transaction between independent parties.
The economic substance of a transaction indicates the exchange has occurred. Mere legal
form of an exchange doesn't support revenue realization.
 The earning process is complete or virtually complete and all necessary cost has been
incurred or may be estimated with reasonable accuracy.
 Collection of claims from customers who have purchased goods and services is
reasonably assured.

Most of today’s revenue generating transactions are complex and involve considerable
uncertainty. Consequently, the implementation of revenue realization principles is a routine
matter. Accountants must exercise professional judgment in the valuation of the economic
substance of revenue generating transaction and related evidence.

Supporting it in the sales of product, for example the seller must transfer all or substantially
careful not to recognize revenue prematurely or when substantive exchanges transaction is not
present transaction between realized revenue. Although understanding of the earning process and

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the costs involved in the realization of revenue is essential before revenue is recognized. Finally
recognition of revenue is not appropriate when a relatively high probability exists that the claims
from customers will not be collected (Mosich, 1989).

2.10. Government revenue

Government revenue is money received by a government. It is an important tool of the fiscal

policy of the government and is the opposite factor of government spending. Revenues earned by
the government are received from sources such as taxes levied on the incomes and wealth
accumulation of individuals and corporations and on the goods and services produced, exports
and imports, non-taxable sources such as government-owned corporations' incomes, central bank
revenue and capital receipts in the form of external loans and debts from international financial
institutions (http://en.wikipedia.org/wiki/Government_revenue).

Tax revenue is the income that is gained by governments through taxation. Taxes are important
sources of public revenue. The existence of collective consumption of goods and services
necessitates putting some of our income into government hands. Such public goods like roads,
power, municipal services, and other public infrastructures have favorable results on many
families, business enterprises, industries and the general public. Public goods are normally
supplied by public agencies due to their natures of non-rivalry and non-excludability. The nature
of consumption of public goods is such that consumption by one does not reduce consumption
for others. Besides, consumption of public goods by an agent does not exclude others from doing
same. Such nature of public goods therefore makes them impossible for private suppliers to avail
them at market prices like other commodities. Government intervention in the supply of public
goods is therefore inevitable and can only be done if the public pays taxes for the production and
supply of such goods (www.ethiopia.gov.et/taxprocedures).

2.11. Major Types of Taxes existing in Ethiopia

2.11.1. Direct Taxes

A. Tax on Income from Employment / Personal Income Tax

Every person deriving income from employment is liable to pay tax on that income at the rate
specified in Schedule “A” Employment income shall include any payments or gains in cash or in

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kind received from employment by an individual. Employers have an obligation to withhold the
tax from each payment to an employee, and pay the Tax Authority the amount withheld during
each calendar month. In applying the procedure, income attributable to the months of Nehassie
and Pagume shall be aggregated and treated as the income of one month. If the tax on income
from employment, instead of being deducted from the salary or wage of the employee, is paid by
the employer in whole or in part, the amount so paid shall be added to the taxable income and
shall be considered as part thereof.

B. Business Profit Tax

This is the tax imposed on the taxable business income / net profit realized from entrepreneurial
activity. Taxable business income would be determined per tax period on the basis of the profit
and loss account or income statement, which shall be drawn in compliance with the generally
accepted accounting standards. Corporate businesses are required to pay 30% flat rate of
business income tax. For unincorporated or individual businesses the business income tax ranges
from 10% - 35%. Unincorporated or individual businesses are taxed in accordance with the
schedule “C” In the determination of business income subject to tax in Ethiopia, deductions
would be allowed for expenses incurred for the purpose of earning, securing, and maintaining
that business income to the extent that the expenses can be proven by the tax payer. The
following expenses shall be deductible from gross income in calculating taxable income:

 The direct cost of producing the income, such as the direct cost of manufacturing,
purchasing, importation, selling and such other similar costs;General and administrative
expenses connected with the business activity;
 Premiums payable on insurance directly connected with the business activity;
 Expenses incurred in connection with the promotion of the business inside and outside
the country, subject to the limits set by the directive issued by the Minister of Revenue;
Commissions paid for services rendered to the business;
 Sums paid as salary, wages or other emoluments to the children of the proprietor or
member of the partnership shall only be allowed deduction if such employees have the
qualifications required by the post.

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 The following categories of income would be exempted from payment of business income
tax:

 Awards for adopted or suggested innovations and cost saving measures;

 Public awards for outstanding performance;
 Income specifically exempted from income tax by the law in force in Ethiopia, by
international treaty or by an agreement made (www.ethiopia.gov.et/taxprocedures).

C. Tax on Income from Rental of Buildings

This is the tax imposed on the income from rental of buildings. If the taxpayer leased
furnished quarters, the amounts received attributable to the lease of furniture and equipment
would be included in the income and taxed. The tax payable on rented houses would be
charged at the following rates:

 On income of bodies 30% of taxable income

 On income of persons according to the following schedule

D. Tax on Interest Income on Deposits

Every person deriving income from interest on deposits shall pay tax at the rate of 5%. The
payers are required to withhold the tax and account to the Tax Authority.

E. Dividend Income Tax

Every person deriving income from dividends from a share company or withdrawals of
profits from a private limited company shall be subject to tax at the rate of 10%. The
withholding agent shall withhold or collect the tax and account to the Tax Authority.

F. Tax on Income from Royalties

Royalty income’ means a payment of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or scientific work including
cinematography films, and films or tapes for radio or television broadcasting. Royalty
income shall be liable to tax at a flat rate of 5%. The withholding agent who effects payment
shall withhold the foregoing tax and account to the Tax Authority. Where the payer resides

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 abroad and the recipient is a resident, the recipient shall pay tax on the royalty income within
the time limit set out.

G. Tax on Income from Games of Chance

Every person deriving income from winning of games of chance (example; lotteries,
tombola, and other similar activities) shall be subject to tax at the rate of 15%, except for
winning of less than 100 Birr. The payer shall withhold or collect the tax and account to the
Tax Authority.

H. Tax on Gains of Transfer of Certain Investment Property

This is the tax payable on gains obtained from the transfer (sale or gift) of building held for
business, factory, office, and shares of companies. Such income is taxable at the following
rates:

 Building held for business, factory, and office at the rate of 15%;
 Shares of companies at the rate of 30%.
 Gains obtained from the transfer of building held for residence shall be exempted
from tax provided that such building is fully used for dwelling for two years prior to
the date of transfer ( www.ethiopia.gov.et/taxprocedures).

I. Tax on Income from Rental of Property

The taxable income under this category is income derived from casual rental of
property(including any land, building, or movable asset) not related to a business activity.
This type of income is subject to tax at a flat rate of 15% of the annual gross income.

J. Rendering of Technical Services outside Ethiopia

All payments made in consideration of any kind of technical services rendered outside
Ethiopia to resident persons in any form shall be liable to tax at a flat rate of 10% which shall
be withheld and paid to the Tax Authority by the payer. The term “technical service “means
any kind of expert advice or technological service rendered
(www.ethiopia.gov.et/taxprocedures).

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 K. Agricultural Income Tax

According to Proclamation No. 152 of 1978 individual farmers and agricultural producer
cooperatives earning up to Birr 600 per annum are required to pay 10 Birr. The tax rates on
every additional income vary from 10% to 89% for income above 600 Birr. In line with the
economic policy and structural set up of the Federal Democratic Republic of Ethiopia, the
former tax on income from agricultural activities and the land use rent was revised in 1995.
Since income tax from this source is allocated to Regional States in consonance with the
provisions of the new constitution of 1994, each Regional State is entitled to issue a
Proclamation providing for such a tax and rent (www.ethiopia.gov.et/taxprocedures)

.L. Land Use Tax

According to Proclamation No. 77/1976 and No. 152 /1978 individual farmers, who are not
members of producer’s cooperatives, are required to pay a land use fee of Birr 10 per hectare
per annum. Government agricultural organizations pay 2 Birr per hectare per annum. Presently
regional states have their own land use rent system (www.ethiopia.gov.et/taxprocedures).

2.11.2. Indirect Taxes

A. Turnover Tax

The Turnover Tax would be payable on goods sold and services rendered by persons not
registered for Value Added Tax. The rate of Turnover Tax is

 2% on goods sold locally;

 for services rendered locally:
 2% on contractors, grain mills, tractors and combine-harvesters;
 10% on others.

The base of computation of the Turnover Tax is the gross receipts in respect of goods
supplied or services rendered. A person who sells goods and services has the obligation to
collect the Turnover Tax from the buyer and transfer it to the Tax Authority. Hence, the
seller is principally accountable for the payment of the tax. In accordance with the Turnover
Tax Proclamation No. 308/2002, the following would be exempted:

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 Sale or transfer of dwelling used for a minimum of two years, or the lease of a
dwelling;

Rendering of financial services;

 Supply of national or foreign currency and of securities;

 Rendering by religious organizations of religious or other related services;
 Supply of prescription drugs specified in directives issued by the relevant
government agency, and
 the rendering of medical services;
 Rendering of educational services provided by educational institutions;
 Supply of goods and rendering of services in the form of humanitarian aid;
 Supply of electricity, kerosene and water;
 Provision of transport;
 Permits and license fees;
 Supply of goods or services by a workshop employing disabled individuals (if more
than 60% of the employees are disabled);
 Supply of books ( www.ethiopia.gov.et/taxprocedures).

B. Excise Tax

It is believed that this tax should be imposed on luxury goods and basic goods, which are
demand inelastic. It is also believed that imposing the tax on goods that are hazardous to
health and which are causes to social problems will reduce the consumption thereof.

C. Value Added Tax (VAT)

VAT is a tax on consumer expenditure. It is collected on business transactions and imports.

A taxable person can be an individual, firm, company, as long as such a person is required to
be registered for VAT. Most business transactions involve supplies of goods or services.
VAT is payable if they are:

 Supplies made in Ethiopia;

 Made by a taxable person;
 Made in the course or furtherance of a business;

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  Are not specifically exempted or zero-rated.

The Value Added Tax would be levied at the rate of 15% of the value of: Every taxable
transaction by a registered person; every import of goods, other than an exempt import; and
Import of services (www.ethiopia.gov.et/taxprocedures).

D. Customs Duty

Any good imported or exported would be subject to:

 Payment of duties and taxes according to the tariff of Harmonized Commodity

Description and coding system;
 Payment of duties and taxes according to the preferential tariff rate where goods are
imported from the preferred country;
 Payment of duties and taxes at the rate in force on the day the declaration of the
goods are presented to, and accepted by the customs office. (
www.ethiopia.gov.et/taxprocedures)

E. Stamp Duty

The following instruments shall be chargeable with stamp duty:

 Memorandum and articles of association of any business organization, cooperative or

any other form of association;
 Award; Bonds; Warehouse bond;
 Contract and agreements and memorandums;
 Security deeds;
 Collective agreement;
 Contract of employment;
 Lease, including sub-lease and transfer of similar rights;
 Notorial acts;
 Power of attorney;
 Documents of title to property ( www.ethiopia.gov.et/taxprocedures).

3. RESEARCH MRTHODOLOGY

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 3.1. Research Design

This research will be descriptive in nature. This is because of the relevance of getting
information about the study and the aim of the study will describe the current condition of the
problems that face the revenue authority to collect revenue. In addition the researcher will be
use both open ended and close ended questions.

3.2. Method of data collection

The researcher will be use different data collection methods. The primary data will be collected
through questionnaires, interviews and observation. The secondary data will be collected by
reading different written documents and statistical information available in the revenue office.

3.3. Sample size

The samples will be selected from the total population of 3,979. This population consists of the
total tax payers that are found in Holeta town. These tax payers have three categories. Category
“A” have a total of 451 tax payers, category “B” have a total of 712 tax payers and category
“C” have a total of 2816 tax payers. The researcher does not use statistical formula to
determine the sample size. This is because the sample size obtained by using statistical formula
is very large. The researcher will be judgmentally set a sample size of 30 tax payers from the
total population based on the ratio of the total tax payers in each category to the total tax
payers.

3.4. Sampling method

The sample selection method will be made by considering the nature and scope of the subject
matter under study. Hence the researcher will use stratified random sampling to select samples
from the target population.

3.5. Source of data

The researcher will use mainly primary sources of data. The primary sources of data include
the managers of the revenue office and tax payers found in Holeta town. The researcher also
will use some secondary sources from documents available in the revenue office.

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 3.6. Methods of data presentation and analysis

The researcher will use tables, percentages and other specific interpretation methods that are
descriptive analysis methods in order to make the research objective clear and defined. In
addition personal information of the respondents will be presented.

4. Budget Requirements and Action plan

4.1. Budget Requirements

The budget for research proposal will provide the following:

 Details of the possible expenditures for the proposed research project
 Reassurance to funders that the researchers have a realistic sense of the expenses to
complete the work proposed.
 List of other income sources for costs not covered in the grant proposal.
 Guarantees an optimal use of the funds.
 Makes practical implementation of the research project smoother.
Table 1: Budget required

S.N Activity Rate/day Duration Total cost

1 Perdiem for 5 data collectors 5,000 10 50,000.00
2 Transportation costs for 5 data collectors 1,000 10 10,000.00

3 Other costs 15,000.00

Total costs 75,000.00

4.2. Action plan

An action plan is a document that lists what steps must be taken to achieve a specific goal. It
breaks down the goal into actionable steps that can be easily followed and tracked. The purpose
of an action plan is to clarify what resources are required to reach the goal and formulate a
timeline for when specific tasks need to be completed.

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 Creating an action plan requires a thorough understanding of the goal and objectives, as well as
the strategies to reach them. It is important to consult all stakeholders before creating an action
plan so that it adequately addresses their needs. An action plan can include deadlines, resources
needed to complete the tasks and key personnel responsible for implementation. The action plan
should also clearly define who handles each task, when tasks need to be completed and how
they will be measured to determine success.

Table 2: The total available time for the all work before submission of the final thesis is around
13 weeks.

S.N Activity Duration Commencement Completion

o

1 Preparing thesis proposal and 2 weeks

submission

Literature review 2 weeks

Group meeting Once a week

Meeting advisor Once a week

Data collection 3 weeks

Analyzing formation 2 weeks

Writing draft 2 weeks

Restructuring final draft 1 week

Short form for presentation 1 week

Submission of final thesis

Final presentation

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