Presentation by Azime A. Hassen at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.

1. An Assessment of ERCA’s
Taxpayer Education Programs and
how they can be improved
Azime A. Hassen
Oct 8,2018
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2. Outline
• Introduction
• Objectives and research questions
• Literature Review
• Methodology
• How does the ERCA taxpayer Education compare with other countries?
• The Tax education Initiatives in ERCA
• The taxpayers’ perceptions about the taxpayer Education program
• How taxpayer Education program designed properly for its purpose and in its
application?
• Concluding remarks
• Recommendations
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3. Introduction
• Tax Education is the method of educating taxpayer through various
media.
• Tax education may increase taxpayer knowledge of tax laws and
procedures, potentially increasing their ability and willingness to
comply and thus increasing tax revenue for the government, through
better compliance.
• Large number of studies focused on the role of tax education in
shaping tax morale.
• Tax is part of the social contract by which citizens collectively agree to
contribute to a civilized society.
• Using Afro barometer data on thirty-six African countries, Isbell (2017)
reports that the majority of respondents have difficulty figuring out
what taxes they owe to the government.
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4. Objectives and Research questions
The purpose of this study is to assess ERCA’s taxpayer education
programs and how they can be improved.
More specifically, my study asks the following research questions:
1. How is ERCA reaching out to inform and engage current and future
taxpayers?
2. How does the ERCA’s taxpayer education compare with those of other
countries?
3. What are the taxpayers’ perceptions about the taxpayer education
program?
4. Is ERCA’s taxpayer education program designed and implemented properly
for its purpose?
4

5. Literature Review
• Taxpayer education covers a wide range of activities and actors –
• from government programs to encourage tax-compliant behavior,
• to efforts by business organizations to mobilize and represent the interests of their
members on tax issues,
• to civil society initiatives to bring citizens into policy debates on tax collection and
redistribution.
• The large informal economy in most developing countries is an
important reason for engaging in taxpayer education. A simple cost-
benefit analysis is likely to show that chasing many potential
taxpayers whose contribution would likely be minimal drains more
resources than it brings in.
• However, engaging and educating them can help to strengthen
feelings of responsibility and identity to the state(OECD, 2012).
5

6. Methodology
• To review/survey current initiatives
• compare with other countries, plus go in depth on taxpayer
perceptions and the suitability of current programs.
• qualitative methods -allow us to have an overview of programs and
an in depth understanding of the implementation and perceptions
around them.
• A total of 250 questionnaires were distributed
• Two ERCA Branches(Focus on Small and Medium Taxpayers).
• 15 interview from Taxpayers , as well as an interview of tax education
experts at ERCA.
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7. RQ1. How is ERCA reaching out to inform and
engage current and future taxpayers?
A. TV and Radio Program
I. “Gebe Lelimat” TV Program
• EBC (discontinued )
• Walta
• Fana
II. Radio
• 97.1 FM Radio(discontinued)
• National Radio(discontinued)
• Radio Fana
7

8. RQ1. How is ERCA reaching out to inform and
engage current and future ….
B. News Paper: Gebe Lelimat Gazeta
C. Tax week celebrations
D. Tax training and seminars
E. Call Center
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9. RQ2. How does the ERCA’s taxpayer education compare
with those of other countries?
• Most taxpayer education programs, especially Africa, were created during
the last decade
• despite this short history, taxpayer education is increasingly being included
amongst the strategic business lines of tax administrations.
South Africa’s Taxpayer Education :
• South Africa has created a stronger presence in rural areas through mobile vehicles
that bring tax information to the people.
• It also reaches millions of taxpayers through TV and radio, explaining the importance
of good fiscal citizenship and showing taxpayers how to become tax compliant
• Main Objective of the program:
• to explain why citizens should pay tax and how tax revenue is used
• to show taxpayers how to be independently compliant
• to make taxpayers aware of their obligations,
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10. RQ2. How does the ERCA’s taxpayer education…
Zambia’s taxpayer education:
• Zambia’s weekly radio programme, Tax Chat, allows taxpayers to call in live and
ask questions .
• The first half explains a tax matter – such as domestic tax, customs tax or changes
in the administrative system – in the form of an interview between the Head of
the ZRA Co-operation Communication Unit and a ZRA expert.
• The second half of the show involves a live call-in to allow taxpayers to ask
questions, raise concerns or give feedback.
• The general public also provides feedback by email, face to face contact and by
phoning the call center.
• Criticism and feedback is used constructively to improve the show.
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11. RQ2. How does the ERCA’s taxpayer education…
Nigeria’s taxpayer education
• the Nigerian Federal Inland Revenue Service (FIRS) has developed several
strategic initiatives that aim to make tax messages more appealing to taxpayers.
• In Nigeria, a television soap opera – “Binding Duty” – provides a relaxed,
enjoyable and non-confrontational way of reminding citizens of their
responsibility to pay taxes.
• Making tax messages engaging and interesting is a good way of motivating
people.
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12. RQ2. How does the ERCA’s taxpayer education…
• Bangladesh celebrates National Income Tax Day every year on 15
September in the run up to the formal submission day of 30
September, when more than 80% of tax returns are filed.
• Rwanda’s Taxpayer’s Day serves to strengthen links between taxation
and national development, promote tax compliance, and build trust
in the RRA. As guest of honor, the Rwandan President gives awards to
the country’s best taxpayers .
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13. RQ2. How does the ERCA’s taxpayer education…
• Kenya implemented its Schools Outreach Programme in the 2012 to
inculcate a taxpaying culture among future taxpayers
• Mauritius’ tax administration has likewise undertaken tax
sensitization at secondary schools
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14. RQ3. What are the taxpayers’ perceptions about the
taxpayer education program?
• According to survey of taxpayers’ perceptions on ERCA’s tax education
program shows that most of them agree that tax is an important subject to be
learnt in different ways and media, since nobody could escape from it.
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15. RQ3. What are the taxpayers’
perceptions about…
70% of respondents disagreed
with the statement that it is
difficult to file a tax declaration.
A smaller, but still substantial,
proportion indicated that they
agree with the same statement
(25%), while the rest were
neutral.
11%
14%
5%
49%
21%
Difficult to file an income tax declaration
Strongly agree
Agree
neutral
Disagree
Strongly disagree
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16. RQ3. What are the taxpayers’ perceptions about…
the easiness to get in touch
with ERCA to obtain
clarifications on tax laws and
procedures about 31%
agreed.
However, 60% disagreed with
the statement that easy to
get in touch with ERCA to
obtain clarifications on tax
laws and procedures.
Strongly agree
19%
Agree
12%
neutral
9%
Disagree
6%
Strongly disagree
54%
Easy to get in touch with ERCA
Strongly agree
Agree
neutral
Disagree
Strongly disagree
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17. The majorities of the
respondents were aware
of the training and
weekly radio program
about 23% and 16%
respectively.
11
15
2
6
4
16
23
9
5
8
0
0 5 10 15 20 25
In person (local office)
Telephone
letter
ERCA website
Weekly TV program
Weekly Radio Program
Training
Workshop
Tax week celebration
Gebe lelimat newspaper
Other
%
Knowledge on taxpayer’s education initiatives
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18. Strongly
agree
Agree
Neutr
al
Disag
ree
Strongly
disagree
I was treated with courtesy
and respect
21 35 10 19 15
I was helped quickly 28 33 14 14 11
I was provided with clear and
useful information
23 21 8 39 9
I was able to resolve my
question(s) or issue(s)
17 39 13 15 16
• It shows that 34% of respondents
disagreed with the statement that it
they treated with courtesy and respect.
A larger, proportion indicated that they
agree with the same statement (56%),
while the rest were neutral.
• It shows that 61% of respondents
agreed with the statement that it they
were helped quickly. A smaller, but still
substantial, proportion indicated that
they disagree with the same statement
(25%), while the rest were neutral.
• The perception of the respondent is on
the clarity and usefulness of
information; about shows that 44% of
respondents agreed with the statement
that it they was provided with clear and
useful information. A equal, proportion
indicated that they disagree with the
same statement (48%), while the rest
were neutral.
• Concerning the ability to resolve the questions or issues by the
visitor's perception of the respondent’s shows that about shows
that 56% of respondents agreed with the statement that it they
were able to resolve the question(s) or issue(s). A large,
proportion indicated that they disagree with the same statement
(31%), while the rest were neutral.
Taxpayers experienced when they visited ERCA office
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19. Usefulness of the different taxpayers’ initiatives
Very
useful
Somewhat
useful
A little useful
Not useful at
all
Have not used
“Gebi Lelmat” Gazeta 19 15 11 24 31
Tax Topics articles (flyers,
Brochures)
28 21 9 32 9
Weekly Programs detailing
specific tax applications in
Radio
37 31 15 5 12
Gebe Lelmat TV Program 13 24 17 29 17
Tax training 42 37 9 8 4
Tax workshop 34 29 16 20 2
Local office assistance 17 23 39 15 6
Telephone Information
Center
8 15 33 40 4
Tax week celebrate 9 15 34 38 4
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20. Usefulness of the different taxpayers’….
• The most popular or appreciated taxpayers initiatives are training,
radio, workshops and flyers, Brochures.
• But among the different taxpayers education initiatives telephone
Information Center, tax week celebrate and local office assistance and
Gebe Lelmat TV Program are the least preferred; so, few of the
taxpayers use or benefited from this initiative.
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21. RQ4. How taxpayer Education program designed
properly for its purpose?
• Even though there are more works an initiative for the education
going on, but there is still difficult in evaluating the initiatives
effectiveness.
21

22. Directly applied the knowledge/information you learned in your business
16 17
42
24
NO IMPACT A SMALL
IMPCAT
A
MODERATE
IMPACT
A LARGE
IMPACT
a)Training
24 21
37
18
NO IMPACT A SMALL
IMPCAT
A
MODERATE
IMPACT
A LARGE
IMPACT
b) Tax education
workshops
48
14 10
28
NO IMPACT A SMALL
IMPCAT
A MODERATE
IMPACT
A LARGE
IMPACT
c) “Gebe Lelimat” TV
Program
19
7
39
35
NO IMPACT A SMALL
IMPCAT
A
MODERATE
IMPACT
A LARGE
IMPACT
d) Radio Fana
15 11
34
40
NO IMPACT A SMALL
IMPCAT
A
MODERATE
IMPACT
A LARGE
IMPACT
e) 97.1 FM Radio
16 14
41
29
NO IMPACT A SMALL
IMPCAT
A MODERATE
IMPACT
A LARGE
IMPACT
f) National Radio
22

23. Directly applied the knowledge/information….
27
24
42
6
NO IMPACT A SMALL IMPCAT A MODERATE
IMPACT
A LARGE IMPACT
g) Tax week celebrate
24
38
32
6
NO IMPACT A SMALL IMPCAT A MODERATE
IMPACT
A LARGE IMPACT
h) ERCA website
44
22
15
20
NO IMPACT A SMALL
IMPCAT
A MODERATE
IMPACT
A LARGE IMPACT
i) Telephone Information
Center
38
11
26 26
NO IMPACT A SMALL IMPCAT A MODERATE
IMPACT
A LARGE IMPACT
j) Local office assistance
23

24. Tax training content rating
Excellent Good Fair poor
Have not
attended
If you attended tax training, how would you rate the
content/presentation?
52 23 4 10 10
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25. • Using questionnaires administered to the participants of this
research, the respondents identified factors that prevented them
from participating in more taxpayers’ education;
• there was a lack of content detail,
• taxpayer education conflicted with their work schedule
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26. In addition to the survey data analysis, I interviewed tax officials too. They
responded to the main problems and challenges related to taxpayer’s
education. They briefly explained as follows.
• poor communication between the tax authority and taxpayers,
• Weak achievement of categorizing business income taxpayers in their attitudes and
identifying noncompliance to educate them,
• No adequate budget,
• The absence of practice sharing,
• The taxpayers have less interest to participate in tax education program
• Lack of assessment to obtain gets the outcomes of taxpayers’ education
• Lack of monitor and control tax clubs that established in schools,
• Lack of cooperation with stakeholder,
• Lack of consistency relation with the business community,
• Inadequate education with media.
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27. Concluding Remarks
• There is the almost complete lack of rigorous evaluation in the
different tax education initiatives.
• The existing initiatives can be improved to enhance their
effectiveness.
• The content of existing tax education initiatives needs improvement.
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28. Recommendation
• There is a need of sustainability of the taxpayer education message at
institutions is through active participation from the citizens.
• Using taxpayers education create an awareness for fiscal contract that
found between citizens and the state.
• involve the participation of some more groups such as legislators, tax
preparers, tax professional associations, schools, churches, mosques
and taxpayer advocacy groups if available.
• Prepare and disseminate simple and easy type of flyers and broachers
about the different topics of tax.
• Improve the contents of the training and its convenience
• Improve the attractiveness and contents of TV and Radio
• Improve the distribution and availability of the Gebe Leimat news
paper
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29. Thank you!!!
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