Authorities have initiated a comprehensive financial crackdown on two of Addis Ababa’s most notable international schools, launching simultaneous investigations into the International Community School (ICS) and Sandford International School over alleged tax and administrative irregularities.
A tax investigation team from the Ministry of Revenue (MoR) is scrutinizing ICS, often referred to as the “School of America.” This probe places the prestigious institution under intense scrutiny, particularly as it has long held tax-exempt status due to its charitable classification—a situation that seems increasingly questionable given its reputation for charging some of the highest tuition fees in the city. Reports suggest that the investigation is focusing on potential wage tax violations.
Informed sources allege that ICS employs a dual-payment system for its expatriate staff, directing part of their salaries into overseas accounts. This practice has now caught the attention of the MoR, as it may indicate significant tax fraud.
Renowned for serving the children of the elite and expatriate communities, ICS is now under a magnifying glass. As the investigation progresses, the MoR is working alongside other regulatory bodies, with internal documents confirming a thorough inquiry into specific allegations of tax evasion related to these international payments.
This investigation comes amid previous complaints from parents regarding ICS’s policy requiring tuition to be paid exclusively in US dollars—ranging from $11,760 to $36,520 per year—deemed both unfair and impractical.
Parents argue that this policy forces them to resort to the illegal and costly black market to obtain foreign currency, violating Ethiopian financial laws that mandate local transactions be conducted in birr.
Supporting this, ICS’s official Tuition and Fees Guide, effective August 1, 2025, stipulates that payments must be made in USD or equivalent hard currency. The guide details various payment methods, including wire transfers, and explicitly instructs that funds be sent to a TD Bank account in the United States.
Simultaneously, the MoR is pursuing a separate case against Sandford International School. The ministry argues that despite SIS’s charitable registration, it operates as a for-profit entity due to the substantial fees it charges parents. The MoR contends that revenue generated from tuition constitutes taxable income rather than exempt charitable revenue.
Based on the school’s own audited financial statements and expense reports, authorities have issued a tax claim exceeding 129 million Birr for the years 2018-2022, inclusive of profit tax, penalties, and interest.
Sources indicate that a further joint investigation by the Federal Audit Service and Federal Police has now commenced. The government is currently examining the school’s management to seek a lasting resolution to the matter.
