Melaku Fenta, director general of the ERCA, at the high-level tax payers' meeting answers the questions from the people gathered. Sitting on his right are Tewodros Tefera (centre), deputy director of operations of the ERCA, and Shewarega Tsegaye, office manager for the high-level taxpayers' branch.

The city's businesses, together with those of Adama (Nazareth), have been identified as problematic when it comes to tax related issues, the Ethiopian Revenues and Customs Authority (ERCA) told 1,000 high-level taxpayers from Addis Abeba.

The taxpayers were told this at a meeting that took place on August 4 and 5, 2010, at the National Lottery Hall. The ERCA called the meeting to discuss tax enforcement and implementation problems. Each day of the meeting handled half of the businesspeople.

The authority has carried out tax audits on 4.2 billion Br and collected 1.5 billion Br, according to Gebrewahad Wolde Giorgis, ERCA Law Enforcement Department deputy director.

It has also collected 143.5 million Br from seized contraband goods and has won 623 court cases out of the 670 it has filed.

However, the ERCA itself has so far barely escaped being taken to court. The Cooperative Bank of Oromia (CBO) is considering to take such action, immediately, because of the ERCA's failure to implement a 2.2 million Br tax refund that the bank expects, Muktar Aliyi, finance manager of the Cooperative Bank of Oromia (CBO), told officials of the authority. This refund was related to a 2006/07 loss that the bank had incurred.

The CBO sent a letter to the ERCA on Friday, August 6, 2010, reiterating its threat that it was going to court, according to Muktar.

The issue would be resolved amicably, the ERCA told the bank's messengers, according to a highly placed official at CBO.

Additionally, the ERCA's employees are not well-informed about procedures and even terminology, participants of the two meetings also told the authority. The CBO had to explain its case for a second time after a new employee was appointed, it complained. This complaint was shared by a number of businesspeople.

However, employees are hired on a permanent basis, according to Melaku Fenta, director general of the ERCA. There is also proper documentation to avoid any problems on the job when new employees take over, he said.