Addis Ababa Revenue Bureau to Penalize Taxpayers Without Accounting Records

The Addis Ababa Revenue Bureau has issued a new directive to penalize taxpayers who fail to maintain and submit proper accounting records. The Bureau emphasized that maintaining accounting records is a mandatory obligation for Category A and B taxpayers under federal tax laws. Failing to do so will be classified as tax evasion.

Under this directive, penalties include doubling the profit margin for tax calculation purposes, imposing a 40% penalty on tax deficits, and a 200% penalty on the primary tax amount. The Bureau has stated that information on non-compliant taxpayers will be compiled and transferred to the legal compliance department for further action.