Residential Rental Income Tax Evasion and Challenges in Addis Ababa

Tax which is a big source of revenue to the Government has been a major concern to many developing countries including Ethiopia in recent times. This is due to the fact that taxation faces a lot of challenges in developing countries, and once these are not properly dealt with, it becomes a big disadvantage to the government and citizens of that country, as enough revenue will not be generated to the government. Various challenges such as complex tax structure, tax evasion, and inadequate logistics are making taxation difficult in Addis Ababa. All the challenges reduce the amount of revenue generated by the government. The inability of the government to tackle these challenges will encourage economic instability, poor infrastructural development and poor economic growth.