Abstract:
The general objective of this research was to make an Assessment on the effectiveness of
presumptive tax: in Gondar city revenue and custom authority. The researcher has followed
explanatory as research design which is conducted for a problem which is not well
researched before, demands priorities, generate operational definitions and provides a better
researched model.The target populations of the study were employees of the selected custom
and revenue office and enterprises in the city. As to the data obtained from the city small and
medium enterprises office there are more than 2721 enterprises which are registered and
operating in the city (Gondor city SME office) and they will used for the research purpose as
well. The researcher chooses to use primary and secondary data (data obtained from
internet, books and articles ) After the data has been collected from primary source, it is
checked and in-house editing is be undertaken to detect errors that were committed by the
respondents. Then, the edited data is coded and manually entered in to statistical package for
social science (SPSS) version 20 computer software which consists of descriptive and
infertial statistics. In addition to this, the researcher was concerned with the interpretation
and the representation of justification. Besides, spearman rank correlation was used to
analyze the relationship between independent variables and dependent variable. The results
of correlation analysis show that all the independent variables were positively and
significantly correlated with the dependent variable Hence Pearson Correlation value for
Equity is .571 which means Equity has 57.1% relation or correlation with effectiveness of
presumptive tax , Efficiency has also 28.9 % relation with the dependent variable , Neutrality
has Pearson Correlation value of .477 and it means it has 47.7% relation with the dependent
variable and Convenience has also has Pearson Correlation value for .646 and it mean also
that Neutrality has 64.6% relation with the dependent variable and finally Flexibility has
27.9% correlation with the dependent variable .the R square result is 0.556 which means
55.6 % of variables which directly and indirectly affect the Effectiveness of Presumptive tax
is assed and evaluated in this research paper.
