Business owners continued their pleas for consistent auditing with the Ethiopian Revenue and Customs Authority (ERCA) during a meeting at the Ghion hotel on Monday February 3. “They wont accept clear financial statements that are handed to them,” one participant said.
But ERCA says they are working to combat auditing problems and training their employees.
Dereje Mekonnen, Branch Head of the High Tax Payer’s Office, said that the Authority is working to give its employees better skills to eliminate the problem.
ERCA’s auditors are permitted to examine any company’s financial statement. They do this randomly and if they find discrepancies they often add additional tax. Even after further disputes the company usually ends up paying some of the increased fee.
Participants claimed that ERCA employees are inconsistent. To put an end to this dispute once and for all participants are asking the Authority to work with the Ministry of Finance and Economic Development to amend tax laws and regulations and come up with a uniform auditing process.