LL.

B THESIS

BY, KASSA GETU

Addis Ababa, Ethiopia

July 2008
 SEIZURE AND ITS EFFECT UNDER THE INCOME TAX
PROCLAMATION NO. 286/2002

BY, KASSA GETU

ADVISOR. ZIMMETA BEYENE

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIRMENTS
FOR THE BACHELORS DEGREE OF LAW (LL, B) AT THE
FACULTY OF LAW, ST.MARY’S UNIVERSITY COLLEGE

ADDIS ABABA, ETHIOPIA

JULY 200
 TABLE OF CONTENTS
PAGE
Acknowledgement-------------------------------------------------------- i
Introduction---------------------------------------------------------------- ii
CHAPTER ONE
Definition and back ground of Income Tax in Ethiopia
1.1. Definition of Taxation ------------------------------------------------- 1
1.2. Back Ground of Income Tax in Ethiopia-------------------------- 4
1.3. Tax system------------------------------------------------------------ 5
1.3.1. Ethiopian Tax System----------------------------------------- 7
1.3.2.Principles of Income Tax-------------------------------------- 8
1.4. Ethiopian Tax system----------------------------------------------- 9
1.5. Principles of Income Tax ------------------------------------------- 11
CHAPTER TWO
Collection of Income Tax
2.1. The power of Tax Authority-------------------------------------- 14
2.2. The Tax Payer Right and Duty------------------------------------ 16
2.3. Enforcement Mechanism------------------------------------------ 19
2.3.1. Appeal to Review Committee---------------------------- 20
2.3.2. Appeal to the Appeal Commission------------------------- 21
2.3.3. Appeal to Court------------------------------------------- 21
2.3.4. Seizure of Notice-------------------------------------------------- 22
2.3.5. Security Right of the Authority-------------------------------- 23
2.3.6 Seizure of Property to Enforce Tax Due------------------------- 24
CHAPTER THREE
SEIZURE TO COLLECT UN PAID TAX

3.1. Seizure Experience of other Country ------------------------------ 29

3.2. Experience of Seizure------------------------------------------------ 30
3.2.1 The Draft Directive of Tax Seizer --------------------------- 31
3.3. Importance of seizure for Ethiopia---------------------------------- 33
3.4. Problems of seizure -------------------------------------------------- 34
3.4.1. Contradiction with the Constitutional principle ---------- 34
A. Violation of Supremacy of the Law-------------------------------- 35
B. Violation of Separation of Power ----------------------------------- 36
C. Violation of the Right to Property------------------------------------- 38
D. Violation of the Right to Access to Justice -------------------------- 40
3.5. Practical Problem------------------------------------------------------ 42
Conclusion and Recommendation
• Conclusion ---------------------------------------------------------- 43
• Recommendation---------------------------------------------------- 44

End Notes

Bibliography

Annex’s
 ACKNOWLEDGMENT

First of all thanks to God for all that he give me Strength and hope for my life and
the success of this thesis
I am very great full to My Advisor w/t Zimmeta Beyena for her valuable
comments and advise on this thesis.
My thanks go to A to Gebrelibanos WeldeAregay Head of Addis Ababa
Revenue Agency legal department, Ato Gizaw Tesfaye & Ato Dawit Zewde . Who
helped me in material and moral assistance.
I am also grate full to Ato Girma on that Provides his valuable time at most
patient in editing language.
I really give my heartily thanks to w/o Tigist Ashine and Chaltu wordofa
/mimi/ for typing this paper.
Finally I am very much grateful to all my family, friends and other persons who
encourage me during these four years.
 INTRODUCTION
Taxation is a back bone of every state. It used to fund the government
expenditures, regulating the economy of the country and to mitigate the
difference between the poor and rich. Tax has been defined in different ways by
different writers :- Dr H.L. Bhatia defines: - A tax is a compulsory levy and
those who are taxed have to pay the sums irrespective of any corresponding
return or service of good by the government. Hence tax payer, do not receive
definite and direct benefit from the government for paying their tax liabilities.
In Ethiopia it is difficult to ascertain when and how taxation began,
However Ethiopian kings such as, king Zera yacob (1934-1468) and king
Zadingel introduced and declared taxes. Based on this legislation the people
were obliged to pay taxes to soldiers and clergy’s, Emperor menlik established
the Ministry to collect revenue and these ministry collected taxes until 1931.
There for the Ethiopian tax has got statutory bases. After 30 years
proclamation No 173/61 which is considered as modern tax law, remained in
force until the current tax law came in to being.
Among the reason to coming the current income tax law is that the
former tax law was backward, be not accommodate the currant situation of
and could the Federal Democratic Republic of Ethiopia.
In the modern world there are two kinds of tax systems, these are
scheduler tax system which divides the income of a persons into different
schedules and Global tax system which take all incomes as a one income and
apply the same tax rate for all incomes.
Ethiopia follows scheduler tax system and apply different tax rate
according to the schedule of the incomes. A good tax system recognizes not
only the duty of tax payers but also the right of tax payers, during imposition of
taxes therefore the tax collector must apply principles of equality, principle of
certainty, principle of economy and principle of convenience to respect the
rights of tax payers.
 The current income tax law No 286/2002 is proclaimed by harmonizing
some changes of the globe. This income tax law has give rights to and
obligations to tax collector and tax payers among the rights of tax payers is the
right to lodge an appeal to the competent authority and to pay the determined
amount.
The new income tax law also has vested different power to the tax
authority to enforce tax obligations. Among such powers is the power to give a
tax assessment, and to seize and sell tax payers properties, who do not comply
with their tax liabilities due.
The objective of this pepper is to show how tax enforcement mechanism
which is vested by the law to the tax authority possibly violates the basic
principle of Constitution and tax payer rights and it also shows non apply of
seizure for the last 6 years at Addis Ababa Revenue Agency for of different
reasons. So as the writer opinion the study will help to show the problems for
the law maker and amend the tax law by harmonizing the supreme law of the
land to create good relationship among tax collector and tax payers.
This paper is divided in to three chapters:-
The first chapter deals with definition and back ground of income tax in
Ethiopia. Chapter two deals with the rights and duties of tax payers and the
tax authority, Such as right to appeal, right to raise administrative penalty for
the tax payers, and how the tax authority enforce the tax proclamation and
regulation issued to implement the income tax Proclamation.
Chapter three deals how to apply seizure in accordance with the tax law
by Addis Ababa city Revenue Agency and NON ratification of the directive to
implement seizure and how the tax law violates constitutional rights of tax
payers. The research also has conclusions and recommendation at the end.
In doing the research the writer had used different materials such as,
Federal Democratic Republic of Ethiopia constitution; Universal Declaration of
Human Right document, African Human rights Charter and documents that
can give the necessary information for the research.
 CHAPTER ONE

Definition and Back Ground of Income Tax in

Ethiopia
1.1 Definition of Taxation

Taxation has been defined by many scholars who studied it as a

separate subject of matter. Different Scholars come up with different
lines of reasoning as to what taxation means and its relationship with
the government. H.L Bhatia, defines the term tax as `` a compulsory levy
and those who are taxed have to pay the sums irrespective of any
corresponding return of services or goods by the government. 1

Bahtia definition shows that the major Characteristic of a tax is, its
obligatory nature. A tax payer may, not necessarily get proportional
benefit for its contribution. In other words a tax-payer may not receive a
definite and direct quid proquo, meaning some thing given or taken as
equivalent to another from the government. Note the word direct here, it
is not a price paid by the tax-payer for any definite service or a
commodity supplied by the government.
Black’s Law dictionary defines the term tax as:-
``………… a charge by the government on the income of
an individual, corporation….. as well as the value of an
estate or gift. A particular Burden laid upon individual
or property to support the government, and it is a payment
exacted by the legislative authority.``2

From the above definition we can understood that tax is essentially laid
upon a person who engaged on business activities and gain income form
it. Additionally the payment of tax concerns not only natural persons but
also legal persons or corporations, which carry business activities.

1
However not all payments made to the government are taxes. We seek of
income tax, sales tax, Property tax, business tax…however transfer of
value to the government are taxes if they don’t have the following two
character sticks.3 Firstly, if they are not paid directly in the exchange of
specific service as user fees. Second, if they are not levied particularly to
regulate behavior, such levy has to be revenue.
Prof, Boris I.Bittker said taxation is one of the most single sources of
revenue for the state and local government. It is levied compulsory on
such properties as land, commercial, building and automobile. It is an
inherent and indispensable power of sovereign; it is power to coerce
individuals to give part of his property or wealth with out his consent.4
The reason for doing by the state or local government is that if the state
has no resource, it can not carry out its mission. `` Taxes are to the
government taken as food``5 the government has to use some of money
for its operations of public purposes. For which it leaves and to keep it
self, through involuntary contributions administered and enforced by the
subject taxation.6

Therefore it can be understood as mechanism that enables the

government to determine the amount to be generated, the manner in
which it is regulated, how to implement the imposed tax. As we see above
in all definitions the main objective of taxation is to support the
government revenue as the main source of finance, in order to bring the
social and economic development of the country.
Before summarizing the general definition of taxation, I would like
to see how the concept of income tax defined under Black’s law
dictionary and under the income tax proclamation of Ethiopia First we
see the definition of income:-
Black’s law dictionary defines the term ``income`` as
the following:-``………. The money or other form of
payment that one receives, usu, periodically, from

2
 employment, business, investments, royalties and
the like``.7
On the other hand the term `` Income`` has also defined under the
income tax law of Ethiopia as the Following:-
``…….every sort of economic benefit including non
recurring gains in cash or in kind, from what ever
source derived and in what ever form paid credited
or received``.8
As we see from the above two definitions, the term ``Income`` has
defined in a similar way. From both definitions income means any
economic benefit in the form of cash or in kind from business, or
investment activities or from other source.
To see the definition of ``Income tax`` we should have to see the
term `` tax`` definition,
Black’s law dictionary define tax as the following.
``………………A monetary charge imposed by the
government on persons, entities, transactions, or
property to yield public revenue. Most broadly, the
form embraces all governmental imposition on the
person property privileges, occupation, and
enjoyment of the people……..``9
These definition of tax suggest that, tax is imposed by the government to
yield public revenue upon a persons who carries business activities and
gain income from it .Similarly to the above definition the Ethiopian tax
law gives power to the tax authority to impose tax on the gain of persons
like emoluments and profits. The income of natural person or legal
person may be from any source, so according to the income tax law, the
person who gain income are under the obligation to pay tax and support
the government revenue.

3
1.2 Back Ground of Income Tax in Ethiopia

In history, people were obliged to pay a tax on different bases. For

instance, in ancient Roma and Greece consumption tax was an
obligation. This event proves that how peoples obliged to pay tax in
different states and it is an inherent obligation. In every country of the
world the governments levies taxes form individuals for the purpose of
satisfaction of various expenditures.

In the history of Ethiopia it is not exactly known when taxation has

begun. It is difficult to get documents which tells when and how tax
payment started. When we see a material prepared by the ministry of
finance entitled ``ABC`` of taxes in Ethiopia. It states that there has been
no document or material as to when exactly taxation was introduced and
what tax system or kinds of tax existed. However, some Ethiopian kings
such as, King Zera Yacob`s (1434-1468) and king Zadangel introduced
and declared.11. Based on this legislation the people obliged to be
soldiers and land owners to pay taxes. Additionally taxation in Ethiopia
is believed to have been introduced in 15th C. This legislation was served
for several centuries and it was repealed by the modern tax system in the
mid 20th century.12 During Emperor Menelike established different
ministries in the year 1900 E.C to carry out government functions, one of
this ministry was Ministry of Finance, that had an obligation to collect
government revenue.13

The task of government gradually increased its commitment to

modernization and economic growth grew over time. From this time
during the Haile Selasie regiem the 1st written constitution was declared
in 1931. Because of this, in Ethiopian tax history the tax proclamation
has got statuary bases and the first tax proclamation was proclaimed in
1942 Proclamation No. 8/1942, was a proclamation to provide for
taxation on land.14

4
The next proclamation No. 107/1942 was established which was cited as
A proclamation to impose tax on persons and business dactivities.15 In
1961 the Income Tax Proclamation No. 173/1961 was proclaimed, this
proclamation served until 2002 for not less than 40 years, with several
amendments. The income tax proclamation No.173/1961 (as amended)
repelled by the Income Tax Proclamation No. 286/2002.

As we see the historical back grounds of taxation in Ethiopia, reflects

that, the concept of taxation passes through long and difficult
experiences and it is still in a constant development. Hence it is a part of
the society and the advancement of governmental polices in order to
achieve a better level of civilization.

1.3 Tax System

A tax is a liability that is imposed on the defined tax payers. Defining a

tax payer is identifying who is obliged to pay a specific type of tax. It is
the tax law that define tax payers. A certain tax law may define the tax
payers based upon different grounds. A good tax system also recognize
the basic right of tax payers.16 So the certain country tax system must
respect and implement the main Rights of the tax payers. But as we
know many of tax laws vested discretional administrative power for the
tax authority. This power must be regulated by the tax system.
A system in which tax is computed Basically, there are two types of
income tax system in the world.17 these are:-

Scheduler tax system

Global tax system

1.3.1 Global tax system

Global tax system deals with General idea of income tax and single rate
structure.18 In a country that follows the global tax system, all the
5
incomes the particular tax payer gains from different activities would be
taken in the aggregate. For instance a person who engage in different
commercial activities and gain monthly salary, all incomes of the person
in a particular year would be aggregate and asked by the tax collector to
pay the tax in accordance with existing tax rate of that country.
Since the global tax system apply the same tax rate for different
incomes, it is also called proportional system. The arguments for and
against proportional taxation, some arguments summarized as follows :-
Proportional tax systems are simple and uniform. Tax rates are the
same for the rich as well as for the poor. Since the tax rate is uniform for
all tax payers, taxation is not very much opposed by them. Tax payers do
not fell the pinch of paying proportional taxes.19 Proportina taxation
satisfies the can on of certainty. As the tax rates are the same for all the
tax payers, the amount of proportional taxes can be estimated and
calculated easily by the government. Therefore, proportional taxation also
satisfies the can on of simplicity and has been regarded as better than
progressive taxation.20 Some of arguments in favor of proportional
taxation are the above.
On the other hand, the supporters of progressive taxation and the
critics of proportional taxation argue that :- proportional tax system,
according to some critics, is not just and equitable. According to them
proportional taxation would not lead to equitable and just distribution of
the burden of taxation, sense the tax burden falls more heavily on small
incomes, than on high incomes. Hence the sacrifice involved in paying of
a tax, proportion to the income, is greater for the poor than for the rich
as the marginal utility is greater for the poor than for the rich. Justice
requires that the sacrifice made by each tax- payer in paying a tax
should be equal.
Therefore, the rich should be taxed at higher rate than the poor.21A
system of proportional taxation means, that the tax rates for the rich and
the poor are the same. Hence the state can not obtain from the richer
6
section of the society as much as they can give. Therefore, in modern
times, with the increasing financial needs of the government, such
system may fail to provide adequate resources to the government.22
For this and other related reasons Global or proportional tax
system is not considered by some as good tax system. Whoever the
system is still followed, by U.S.A, Australia, France etc.
Where we take France as example. Before the tax reform of 1959 in
France consisted of two separate taxes, the proportional tax (a flat rate,
essentially, scheduler tax) and the progressive sure tax (a global tax on
income from all sources, foreign or domestic). The 1959 reform abolished
the two tax system and adopted a single individual income tax, applied at
progressive rates on a global or unitary basis to income from all sources
foreign and demestic.23

1.3.2 Scheduler Tax System

Scheduler tax system gives emphasis on to particular classes,

having rules for each class of tax payers.24 In this tax system the income
of a particular person engaged in different activities could be divided into
different schedules. The classifications of schedules are based on the
source of the income. In this case the person would have to pay the taxes
separately for each schedule by existing rate. For instance, the income of
the person gain from business activity could be taxed in accordance with
business income schedule. The income that he drives from employment
would on the other hand be taxed in accordance with employment
schedule. Therefore incomes gained by the same person are treated
separately. Since this system apply schedule, it is called a scheduler tax
system. The system also follows progressive tax system. There are
opposing argument infavour of and against the progressive taxation.
Firstly we shall see some argument infavour of progressive taxation: -

7
 Progressive taxation is just and equitable on the ground that it
secures equity in sacrifice. In other words, under the system of
progressive taxation inequalities would be reduced, because a higher
proportion of the income and wealth of the rich would be taken away by
way of taxes than that of poor. Hence, a sharply progressive tax system
tends to reduce inequalities:- in the distribution of income and wealth
and, the sharper the progression, the stronger is the tendency to reduce
in equalities, obviously, progressive taxation is desirable in order to bring
about a more equitable distribution of wealth as it is based on the
principle of ability to pay.25 The other argument infaviour of progressive
taxation, that it reduces inequalities, progressive taxation reduces
inequalities of income and wealth by taking away the excessive capacity
to pay. In a progressive tax system, the rich are subjected to higher rates
of taxation and poor are subjected to lower rates of taxation or exempted
from tax obligations Professor kaldor has also emphasized the role of
progressive taxation in reducing the inequalities of income.26
On the other hand there is also objections for progressive taxation
some of this objections are:- Progressive taxation is arbitrary. It is not
bound by rules. In other words, there is no guiding principle according to
which tax rates are determined. The government in order to increase its
revenue, arbitrarily increases the rates of taxes and vice versa.27 The
other arguments against progressive taxation is that it encourages tax
evasion. As the rich are subjected to higher rates of taxation, assesses
submit false returns of their income and wealth. Hence, in the case of
progressive taxation, the motives for evasion would be stronger the
means of prevention less effective than in the case of proportional tax.28
Because of the above arguments progressive tax system taken as a bad
system. Britannia, Australia, Pakistan are the preeminent countries
which adopted this scheduler tax system.

8
 1.4 Which tax system is followed in Ethiopia?

The Ethiopia income tax law has adopted the scheduler approach. The
income tax classifies income into four schedules based on the nature of
the income.29 Article 8 of the Income Tax Proclamation has enumerated
these four schedules as follow:-
1.4.1 Schedule `A` income from employment.30

Employment income shall include any form of payment or gain, either in

the form of cash or in kind, received from current, former or prospecting
employment by an individual. In this regard employers have an
obligation to withhold the tax from each payment according to the
schedule tax rate.
1.4.2 Schedule `B` income from rental of building. 31

This is the tax imposed on the income from rental, of buildings. If the ax
payer leased furnished quarters the amount received attributable to the
lease of furniture and equipment shall be included in income. The tax
payable on rented houses would be charged in different rate, in relation
to bodies tax’s are imposed on a flat rate basis. But with regards to
persons, the tax rates are provided in a progressive level.
1.4.3 Schedule `C` income from Business with exeeption.32

Business income from an industrial or commercial activities earned by a

person or a body arising from such activities will be taxed under
schedule C.
1.4.4 Schedule `D` other incomes .33

Schedule `D` of the Ethiopian income tax includes a number of incomes

that are not categorized under schedule `A` `B` or `C` or the previous
schedules. All incomes under schedule `D` are taxed on flat tax rate
which varies in accordance with the source of income. The major income
types that are included under schedule `D` are:-
9
 1.4.4.1 Royalities.34

Royalties is a payment of any kind received as a consideration for the use

of, or the right to use, any copy right of literary or, artistic or scientific
work including cinematography films, or tapes radio or television or
broad casting. The income shall be liable to tax at a flat rate.
1.4.4.2 Tax on income from games of chance.35
Every person gain income from winning of games of chance
means from tom bola, lotteries are subjected to take flat tax
rate.
1.4.4.3 . Income paid for services rendered out side of
Ethiopia.36
All payments made in consideration of any kind of technical
services rendered out side of Ethiopia to resident persons are
subject to a flat tax rate.
1.4.4.4 . Income from dividends.37
This income is income received in the form of dividend from
a share company or withdrawals of profits from a private
limited company. Dividend income are also subject to flat tax
rate.
1.4.4.5 . Income from causal rental of property.38
This income is derived from causal rental of property,
including machinery and movable assets. This income also
subject to flat tax rate.
1.4.4.6 . Interest income.39
Every person deriving income from interest on deposit shall
pay flat tax rate.

10
 1.4.4.7 . Specified non business capital gains.40
Every person deriveing income from transfer of building held
for business, factory, office, and shares of companies,
subject to tax in two different rates-Buildings held for
business, factory, and office at the rate of 15% and share of
companies at the rate of 30%.
The above enumerated under schedule `D` each incomes are taxable by
flat rate, the payment of tax also performed by with holding system the
payer has an obligation to reduced the tax at the time of payment.
As we see from the above four schedules the Ethiopia tax law has
categorized different incomes based on nature of the business. Because
of this we can categorize Ethiopia in scheduler tax system.

1.5 The Principle of Income Tax

Taxation has certain Principles. These principles are the rules to be

followed when taxes is assessed. The basic economic principles on which
a good tax system have been understand for many years. As quoted by
ALKA Gupta The 18th century philosopher Adam Smith in his book called
`` the wealth of nations `` outlined the following four principles of sound
tax system design.
1.5.1 Principle of Equality

This principle of taxation deals with the issue of Equality among tax
payers, even if there may be other difference like geographical seating
ethnic difference, color and religion. Every tax payer pays the tax towards
the support of the government in proportion to their abilities. This
principle tries to address the objectives of economic justice.
The tax payers are obliged to pay tax due, for all perform their
activities, under the equal protection of the state. But according to the
Justice, payment of tax shall be on the bases of the income gained. Even
if the rich man who gain more income and who gain less get equal

11
protection from the state, the person who got more income should pay
the higher proportion of its income and the person who gets less income
should be obliged to pay in proportion of his income.41

1.5.2 Principles of Certainty

The principle of certainty is aimed at protecting the tax payers from
unnecessary harassment by the tax officials, because in every good tax
system, Tax payers should not be harassed by tax officials.
There is a number of ways that would help to achieve the certainty of
taxes. In many of countries the tax laws dictate and stipulate provisions
how to govern the relation between the tax payer and the authority.
More over the tax law has to make it clear as to who is obliged to pay the
particular tax, by indicating the mode of payment, the quantity to be
paid and the time of payment by clearly and known. If these important
points are clearly identified, tax payers wouldn’t be subjected to the
discretion of tax officials. If the right and duties of tax payers are to be
determined by the discretion of tax officials it would create a room for
corruption. The corrupt practices of tax officials would make tax payers
loose their trust in the tax system. Therefore, tax laws should reflect
certainty.42

1.5.3 Principle of Convenience

The principle of convenience is another principle of taxation. According to

this principle, the mode and timing of tax payment should be, as far as
possible, convenient to the tax payers. The time of payment highly
related with the opportunity of the tax payer to get money from their
client and to pay tax for tax authority before it is spent for other
purposes. In addition the tax notice and other technological ways of
assessing shall be written in simple language, by considering the
understanding of the taxpayer. Hence the above principles should be
designed in a way that would be convenient to the tax payer.43

12
 1.5.4. The principle of Economy

The principle of economy deals with relation between the cost of

collection of taxes and the revenue generated from the tax. Every tax has
a cost of collections. Some of these costs are like the salaries of the tax
office personnel and the cost of maintaining the office. The principle of
economy dictates that the cost of collection so taxes should take in to
consideration and should not cause additional administrative expense.

So far the effective and procure economic and social development, the tax
Authority shall apply the above four principles of taxation. To apply this
principles the tax officials has to obey for the tax laws and expected to
avoid a complex tax administration.

13
 Chapter Two
Collection of Income Tax
Any legislation gives a power to appropriate organ to implement or
enforce the law. Income tax proclamation No. 286/2002 gives power to
collect and implement the proclamation and the regulation issued in
accordance with the proclamation.1
The collection of income tax, starts with the formal assessment of
the tax authority. As we see above the tax authority has vested powers in
order to implement and maintain the proper tax administration we will
see in detail about the power of tax authority as the follows:-

2.1.The power of tax Authority

Before looking the power of tax authority let see the meaning of power:-
Power means ``Legal authorization``2 when used in sense, the word
is related with right. From the definition, we can understand that power
and right are highly related. Because if you have power you also have a
right to that power, then you can apply your power, you can claim, you
can say, you can punish, etc. Based on a given power in which vested by
the legislation or any appropriate material.
The tax Authority under the income tax proclamation is defined as
the following,
Tax Authority`` shall mean the federal inland
revenue head office or any of its branch offices
established in any part of Ethiopia and the tax
authorities of the regional states.3

The definition indicate constitutional right of states in which vested

power to collect taxes.4 The federal government in which vested power to
collect tax.5 and the Addis Ababa City Government have the power to
collect taxes.6

14
 So as we see the definition of tax authority it includes federal in
land revenue, regional state, Addis Ababa and Diredawa city.
From this, the tax Authority shall have the following powers:
To implement and enforce the tax proclamation and regulation
issued to implement the income tax proclamation.7 To investigate any
statements, records and books of account submitted by tax payers. By
sending duly accredited inspectors to the place of business or practice of
the tax payer to check some or any vouchers, stocks of other material
items of the tax payer.8 Enter into agreement with other government for
the avoidance of double taxation on activities or transactions liable to tax
in the territories of both parties.9 Asses the tax by estimation, If no
records and books are kept where the books are rejected the reason, the
record and books of accounts are unacceptable, with in the time
prescribed by the proclamation.10 To conclude an agreements in advance
with persons carrying on entrepreneurial activities for the
implementation of transfer pricing between persons carrying on
businesses.11 Require a withholding agent to submit the records to be
maintained under sub-Article (1) of Art. 56 of Proclamation No.
286/2002.12 By notice in writing revoke an approval granted a company,
if the body fails to comply with any of the conditions attached to the
approval promised to fulfill,13 Impose penalties, If tax payers do not
declare the truth income he/she gained,14 the power to impose penalty
by the tax authority is supported by said `` Effectiveness of the
collections is largely empowered when adequate penalties are proviyed.15
From this we can under stood tax payers would perform their due on the
time to escape from the penalties.
Because of this the income tax proclamation provided two kinds of
penalties, these are:- Administrative penalties and criminal penalties.
First we see Administrative penalties:-
Administrative Penalties are principally imposed for failure to file a
tax return and failure of an individual or corporation to pay estimated
15
income tax within the time prescribed by the law. Administrative penalty
imposed for tax delinquency is a civil obligation, it is remedial and
coercive in its nature and it is different from penalty for a crime. Because
it only impose a monetary sanction.

On the other hand when we see a criminal offence under the

income tax proclamation certain acts constitute a criminal offence and
hence subject to a criminal liability. Those income tax proclamation No.
286/2002 has laid down a number of acts which constitute a criminal
offence. On of the serious offenses is income tax evasion.16 Since the
major challenges of any tax system is tax evasion, in almost all countries
income tax evasion is a serious crime punishable by fine or
imprisonment or both. Tax payers must get the message that the tax
evasion would be punished.17
Under the income tax proclamation No. 286/2002 the authority
shall form time to time publish by notice in daily Gazzetas a list of
persons who have been convicted offenses in violation of the
Proclamation.18 This is accessory penalty for convicted persons, the
purpose of publication of names of persons convicted offences is meant
to deter tax offences. Other power of tax authority is the following:-
 Seize the property of tax payer to collect tax when the tax payer
fails his obligation.19
From the above assertion we can say, that the tax authority has a
tremendous power to enforce the income tax proclamation. So the tax
officials shall have great responsibility to implement the laws by
considering the social and economic situation of the tax payers.

2.2 The tax payer right and duty

Rights and duties are two important and indispensable elements in

a good tax system like in the activities of ones life. So, it is possible to say

16
a commitment that give a right and take a duty between the tax payer
and the tax authority.
Now let see first, the rights of tax payers enumerated under the
Ethiopian income tax proclamation these are:-
The right to receive income tax assessment notice or other notice
which is issued by the tax Authority.20 by including, such as, gross
income and deductions, taxable income, rates applied on the tax, or
percentage, tax expected to pay any administrative penalty, TIN, the
name of tax payer, address and a brief explanation how to assess the tax
and statement of the tax payer’s rights.21 The right to receive to fund.22
The right to reduce or raise administrative penalties which imposed for
tax due.23 The Right to have information kept confidential by the tax
authority and all persons who are or its agents or employees.24 The right
to get an interest if he/she has not received the refund with in the time
prescribed.25 The right to submit application for reconsideration to review
committee within ten days from the notice served.26 The right to lodge an
appeal with in thirty (30) days following the day of receipt of the
assessment notice or from the data of decision of the review
committee.27 The right to appeal on the decision of the appellate
commission, if it has error of law to the competent court.28 The Right to
be served notice before seizure of property.29
The law has also imposed a duty or an obligation on the tax
payers. Before looking the duty of the tax payers let see the meaning of
duty :- Duty means :- `` A complex of Rights and standards of Care
imposed by a legal relationship.30
The definition points us the source of duty is relationship. Therefore, if
there is a legal relation there is duty. Because of this, the income tax
proclamation is a law that create the legal relationship between the tax
payer and the tax Authority.
The income tax proclamation also imposed duty on the tax payers these
are:-
17
 To Hold Tax payer identification number. (TIN)31 This is a system
which is incorporated by the new income tax proclamation the tax
payer also forbidden from obtaining more than one TIN, 32. To
declare income and pay with in the time prescribed by the law.
This declaration performed by two ways. This are the tax payer
himself required to declare and with holding system.

The income required to declare by the tax payer himself is category `A`
with in four months from the end of the tax payers tax year.33
Category `B` tax payers with in two months from the tax payers tax
year.34 Category `C` these payers within one moth from tax payer tax
year. 35 The tax payer who has schedule `D` shall submit their
declaration which is prepared by tax authority within two months
from the end of Ethiopian fiscal year. 36

On the other hand when we see withholding tax it is not the tax
payer him self that will be required to declare, but the payer will hold
it at the source. The withholding system conducted by employer from
every payment to an employee, unless the payment is expressly made
tax exempted by the proclamateion.37 In addition with holding of
income tax on payments conducted by organizations having legal
personality, government agencies, private non profit institutions, and
non-governmental organizations has a duty to withhold taxes and
declare to tax Authority.38
 To keep books and records that is except for category ``C`` tax
payers.39 These tax payers obliged to keep books and records shall
keep information such as a record of a business assets and
liabilities, a record of all purchase and sales of goods and services,
a record of trading stock on hand at the end of the accounting
period, and any other document related to the business activity
showing.40

18
  To submit a Copy of memorandum of association and to notify the
tax Authority of any subsequent change there in.41
 To notify any change of business address, cessation within thirty
days.42

These above mentioned are not all the rights and duties of tax payers
rather the major one.

2.3 Enforcement Mechanism

Before we discuss in detail the enforcement mechanism let see the term
definition of enforcement.

Blacks law dictionary defines the term Enforcement as:-

`` Enforcement is the act or process of compelling compliance
with a law, mandates, command, decree, or agreement.43

The definition suggest that the enforcement emanated from the law
and it applies to discharge ones obligation who have a duty to perform by
the law and it applies to discharge ones obligation who have a duty to
perform by the law or by agreement.
The Ethiopian Income tax proclamation also provides an obligation
on every person having income defined under the Proclamation to pay
income tax.44
This due or obligation is expected to pay before regular
assessment, by way of advance payment and deduction of tax at a
source. After completion of regular assessment, if any tax, interest,
penalty such due is found payable by the tax payer, the tax authority is
required to serve upon the assess notice of demand in the subscribed
form by specifying the sum so payable with in subscribed time by the
law. The tax payer also should pay the amount as demanded under the

19
tax notice of demand in due time in order to escape, penalties,
prosecution, and recovery proceeding.
It is of course true that all tax payers do not comply with the rules
and tie provided by the law for tax payment and, this tax necessitates the
application of enforcement mechanism.
The income tax proclamation vested power to the tax authority to
enforce the un paid tax. 45 Tax collection enforcement is enforcement of
tax obligation. This mechanism takes place after the following tax payers
right completed.
As we see on the previous sub topic the tax payers have the right
of appeal when they disagree with the content of the assessment. This
appeal is hierarchically starting from the review committee, then the
appeal is lodged to the tax appeal Commission and finally to a court of
law.
This institution has different authorization to see the appeals, we
see this in detail as the follows:-

2.3.1 Appeal to Review committee

The first and simplest way to those tax payers who are aggrieved by the
assessment is apple to review committee.46 There is not formality
requirement to lodge appeal to review committee, These review committee
are given the power to examine and decide on all applications submitted
by tax payers for compromise of penalty, interest, and waiver of tax
liability. 47

But the head of the authority must approve the decision of these
committees, if the head disagree with the decision of the committee, the
head can remand the case to the committee with his observations. 48 The
only requirement of the law is to submit the application to the review
committee with in ten days after receiving the assessment notification
from the authority.49

20
 2.3.2 Appeal to the Appeal Commission

If the tax payer do not submit his case to the review committee or
not satisfied with the decision of review committee, he has the right to
appeal to the Tax Appeal Commission with in 30-days.50 The Appeal
Commissions are established at federal, regional, and Addis Ababa City
level. To submit appeal to the Appeal Commission, the tax payer is
required to make 50% payment in advance of the disputed tax amount
for the tax authority. 51 This requirement is raised as one of the problems
by the writer, since it denies constitutional ``right of access to justice``.52
Tax payers are allowed to lodge appeal only after depositing 50% of
the disputed amount to the tax authority, then he can submit the appeal
to the Appeal Commission. If he doesn’t pay with in that time, he will
be give 5 additional work days. After that if he don’t pay the amount in
advance the appeal will be rejected.53
If the tax payer pay 50% of the disputed amount and submit his
appeal to the Appeal Commission, the commission, has the power, to
confirm, reduce or annul any assessment appealed against on the basis
of established factual grounds and the law, and make such further
consequential order thereon as may seem just and necessary for the final
disposition of the matter.54 The Appellate Commission also empowered to
instruct the tax Authority or that tax payer to submit new facts. 55 To
order the tax authority or the tax payer or any other person, to produce
supporting evidence relevant to the tax payers allegation.56

2.3.3. Appeal to Courts

The final remedy of the tax payer is to make an appeal to ordinary

courts. The appeal must be made with in 30 days after the final decision
of the Appeal Commission.57 The ordinary court has power to hear and
determine errors on the grounds of law only. The court of appeal after
making its decision will return to the tax Appeal Commission. 58 If the a
21
tax payer is not satisfied with the decision of the court, he can submit
his appeal with in 30 days after the final decision of the court, But to
submit this appeal he should pay the remaining 50%.59 After the above
tax payer rights completed or expired the submission of appeal to the
appellate court and who doesn’t pay the final assessments is in default.60
Because of this the property of default taxpayer will be seized for the
purpose of the obligation.

2.3.4 Seizure of Notice

The tax authority sends different notices to tax payers or the concerned
party for the purpose of enforcement of tax collection. One such notice is
the seizure notice. Tax payers who evade or delinquent in paying their
tax obligation will receive seizure notice.61.This notice is the last
requirement sent to the tax payer, before starting enforcement. This
notice serves as a warning to the tax payer to appear in person and pay
the tax by the tax authority, unless he appears or through his agents
and pay the tax, his property will be seized and will be sold to satisfy his
tax obligation, interest, administration penalties and costs of seizure and
sale of the property.62 The notice should be give full information about
the tax obligation.63 The notice will be serve to the tax payer by different
mechanisms.

In case of resident individual the notice may be served by registered

letter or by delivering to the tax payer in person or delivering by
registered letter and actual delivery to the tax payer being one and the
same. If the tax payer is absent, constructive services will be used the
officer delivering the notice in such cases can deliver it to any adult
member of tax payer family or any employed by him at his residence, or
place of business or professional practice, provided that, if no person can
be found to accept such notice, then, the same may be effected by

22
affixing the notice to the door or other available part of the residence or
place of business. 64

On the other hand for resident bodies under the proclamation there
is only one means of delivery of notice, the law provides as the following.
``In the case of resident body, by registered letter to the
registered address of the body or by delivery to any director
or employee of the body at any of its places of business``. 65

The above provision shows us notice delivering can also effected by

handing the notice to their agents in Ethiopia, Therefore personal service
is the fist means, deliver to agents are the second means, where the
agents are not available the notice can be affixed to the door or other
available part of the residence or place of business of such agent. Finally
if the above method of delivering notice are not effective the tax authority
may publicize the notice in any news paper. The cost of such publication
shall be cover by the tax payer.

2.3.5 Security Right of the authority

To enforce the tax due the authority must exert their effort to
prevent the property of the tax payers from any deterioration, and they
must also take the necessary measures to collect the tax prior the debtor
of the taxpayer. Under the income tax law there is a preferential claim on
the tax debtor assets. This claim start when tax becomes due and
payable.
When the tax payer as not discharge his obligation, the tax
authority may notify the person, the authorities intent to apply to the
Registering Authority as to any recorded a security interest on any assets
owned by the tax payer.66 If the tax payer fails to pay the tax with in 30
days after notice served, the authority may register the tax payer
property as a security of the tax liability to the extent of the tax debt. 67

The Registering Authority shall register the notice of security with out

23
fee, and this registration shall subject to any prior mortgage over or
charge operate while it subsists in all respects as a legal mortgage over or
charge on the land or building to secure the amount due.68 Registering
tax defaulting persons property is very important to enforce the
obligation and to prevent the property from deterioration.

2.3.6 Seizure of Property to Enforce Tax Due

The Tax Proclamation empowers the Authority to seize of goods

belonging to the tax payer who fails to pay the assessed tax, whoever
seizure is conditional or receiving tax on assessment notification from the
tax authority and failure to make payment or making appeal to the
appeal committee or Tax Appeal Commission.
If payment of the tax is not made by the tax payer with in the time
subscribed by the law seizure would be apply and the tax payer would be
considered to have defaulted by the tax law.
``……… If any person liable to pay any tax imposed by
this Proclamation is in default under article 73/3/
it hall be law full for the tax authority to collect such and
such further amount as shall be sufficient to cover the
expenses of seizure by seizing any property belonging to
such person……69
Such seizure may be made on the accrued salary or ways of any
employee, including a government employee, by serving a notice server
on the officer who has the duty of paying the salary or wages.
This power of seizure is subject to a notice requirement. The law
obliges the authority to serve to seize the gods. The notice must be
delivered in not less than 30 days before seizure of the goods. 70

But there is one exception to the obligation to serve notice this is

when the authority makes a finding that the collection of tax is in
jeopardy.

24
 ``If the tax authority makes a finding that the collection of
the tax is in jeopardy, a demand for immediate payment
of such tax may be made by the tax authority and, on failure
or refusal to pay the tax, collection there of by seizure shall
be law full with out regard to the 30 days period provided
in sub-Article (1) and the days provided in sub-article (4).71
Although there is no clear definition in the legislation regarding ``
Jeopardy`` article 81 of the tax proclamation seems to imply that this is
when the authority has reasonable grounds to believe that the collection
of tax is in Jeopardy and where a state of urgency exists.
In such situations the tax authority may make immediate collection by
seize and sale of the tax payer property or by serving notice to third
parties who possess such property. In addition the authority may issue
administrative order to the bank with a statement of justification for its
order that the bank block the accounts of the person liable for the tax.
The order may also demand that the bank provide information relating to
the accounts, in such cases authorization from the court with in 10 days
is a requirement for the action that it took. 72
The property of seizure differs according to the nature of seizing
property at a particular time by the Proclamation and Directives, there
are properties which are exempt from seizure. Movable properties which
are not exempt form seizure in the hands of the tax payer shall be
physically seized by the authority from the hands of the tax payer.73 If
the property seized is subject to natural and speedy decay or if the cost
of keeping it in custody unlikely to exceed its value, the property may be
sold immediately.74 Regarding agricultural produce, since the produce
can not be seized physicality, the authority will be seize by a Affixing
seizure warrant on the land on which the crop is growing. 75 The copy of
the notice also affixed on any part of the tax payer residence. After this
the produce is deemed to have passed into the possession of the

25
collector. Because of this any person cannot remove the produce with out
the permission of the tax collector or the Authority. The tax payer may
get permission to cut, gather and store the produce, but if he has not
willingness the process will be made by third parties who are hired by
the tax authority, the cost of the remuneration for hired persons will be
added from the process of sale.76
In case of immovable properties since physical seizure of the
property impossible, seizure will be made by giving order to register the
tax payers property to government authorities which register the tax
payer property,77 the Registration serve to protect from transfer or sale to
third party.77 The copy of the order sent for the purpose of registration
may be affixed on the property it self and in the compound of the tax
authority, the tax payer also receive one copy of the notice. The authority
may also seize tax payer’s property form other persons who has no
connection with tax obligation. The authority may require third parties to
hand the tax payer property or effect payment the tax payer due.
If a person refuses or fails to comply with a demand by the
authority to surrender the property subject to seizure, the person is
liable to an amount equal to the value of the property that was not
surrendered. But this liability shall not exceed the tax, cost and interest
that served as the basis for the seizure. Where a person’s failure or
refusal to surrender property on which seizure is made is without
reasonable cause, such person shall be personally liable to the tax
authority for additional charge equal to 50% of the value of the
property.78
Where the tax payer own special properties such as shares found
in a company or in the capital of corporation, seizure will be made by a
written order to the company or the corporation to not transfer for third
parties the share or gave any dividend to the tax payer. 79 The copy of the
order sent the company may deliver to the tax payer. In addition the tax

26
authority has the right to receive tax payer’s property or share from these
persons.
If the tax payer has no property to be seized, such as movable,
immovable, or shares, or seizure of theses properties could not cover the
tax due, the authority would resort to seize the salary of the tax payer,
this will be done by deliver an order to the tax payers employer to deduct
and pay from the tax payer salary either on one payment by monthly
installments. If there is no prior order of account to withhold the tax
payers salary, the employer obliged to deduct the stated amount and
remit it to the tax authority. However where there is prior order from the
court, the employer must return the order given by the authority together
with the reason which makes seizure of salary impossible.80
The tax authority also has the right to seize properties found in
safe box of the tax payer, during this time if the tax payer not willing to
give keys of the safe box the representative of the bank with the authority
will count and register these property.81 The safe box will be kept by the
bank till further order sent from the tax authority.
On the other hand when the tax authority seizes organizations
established to giving services such as laundry or garage, it will return the
property of the tax payer customers, if they themselves are not liable for
the tax due, they will be pay the remaining price that they owe the tax
payer for the tax Authority. 82
The tax authority has also prohibited from seize certain properties,
the proclamation and seizure directive make certain properties free from
attachment by the tax authority, this rule aims to protect tax payers
necessary needs for his life and professional activity. The tax
Proclamation provides that.
`` Such amount of employee remuneration or other periodic
income payable to an individual as doesn’t exceed the
exempt amount according to schedule A………``83

27
According to the above provision the amount of the employees
remuneration or other periodic income payable to an individual doesn’t
exceed birr 150, is exempt from seizure by the tax authority. In addition
the Proclamation provides other exemption as the follows.
`` All other income and property that are not liable to attachment
or lien under Ethiopian law``.84

In this respect for instance we can recall Civil Procedure code of

Ethiopia.
According to article 404 of the Civil Procedure Code in the process
of execution of Judgment, such as bed, tools any kind used by the
Judgment debtor in his profession, necessary wearing, coking vessels
and moneys use for the judgment adepter and his family for a period of
three months, pensions and alimonies are some of non attachable
properties. Since the above provision recognizes the Civil Procedure
Code, those which are enumerated under the Code are also exempt from
seizure.
The seizure directive also exempted the following properties from
seizure: - Lawyers, accountants and doctors files and computers which is
loaded with private and profession files.85 If the tax payer is a farmer or
engaged in agriculture austerity, the tax authority decides to be enough
property for the tax payer activities.86.The directive also exempted some
properties which is exempt by the Civil Procedure code.
According to article 77/7/ of the Tax proclamation the above are
not exhaustive; we can also find exempted property from seizure by other
law of the country.
After seizure completed, the tax authority may sell the property
that is seized. The sale of the property could be either at public auction
or in any other manner the authority approves. The sale of property shall
be conducted in not less than 10 days after seizure. However for

28
perishable goods the authority can sell after reasonable time having
regarded to the natural conditions of the goods.
If the tax payer property doesn’t satisfy the entire clime of the
Tax Authority, the Authority is empowered to make additional seizures
till the amount due, and cost incurred to enforce seizure fully paid.

CHAPTER THREE
Seizure to collect un paid tax
Before we discus in detail the chapter, it is essential to define the term
“seizure”. Black’s law dictionary defines the term seizure as:-“The act of
taking possession of property, E.g. For a violation of law or by virtue of
an execution of a judgment”1

What we can understand from the above definition is that seizure is

taking or removal of some thing from the possession of the judgment
debtor, for satisfaction of the debt. Different countries tax laws also
authorizes their tax Authority to enforce tax due by seizing and selling
the tax payers property for the satisfaction of tax obligation.

3.1 Seizure Experience of Other Counties

The writer intends to show experience of different countries

unfortunately the writer obtained only the experience of South Africa.
This information obtained from the delegation of Ministry of Finance and
Economic Development who visited the South Africa Tax Authority in
PRITORIA, from Sep.4-8/2003.the main purpose was that to understand
how the south Africa Tax Authority enforce and implement tax
proclamation. In South Africa, the major tax enforcement methods are:-
• Tax auditing
• Tax court
• Seize the property of tax payer

29
 • cancel the tax debt
• Search goods on the airport
Investigate a crime against tax etc. So the Authority assesses and
collected tax and duties properly at the right time and enforce properly
all relevant statutory provisions.
For the aspiration of this paper the writer wants to arrange only how the
Administration of income tax authority seizes the properties of non-tox
payers. The tax Authority of South Africa have the power to seize
property of non- tax payer, In order to apply this power the authority
follows the following method:
The Authority submit petition in which supported by oath to the court,
that seize the property of tax payer due to the failerity of paying and non-
declaring of taxes.
The Tax Authority make summons to affix the decision of the court, that
the tax payer failed to pay the amount of tax due with in 14days. If the
tax payer couldn’t discharge his duty within the time given, the Authority
will make petition to the court that order for attachment proper to be
sold. The decision of the court should be passed to the executive organ
and this organ sells the property and pay tax debt for the tax Authority.
On the next topic the writer attempt to show expanse of Ethiopia and it
help to know the difference

3.2 Experience of Seizure

When we came to Ethiopia the modern tax laws of the country had
started during the regime of Emperor Haile Selase, different tax
enforcement mechanisms. One of the enforcement mechanisms was
bringing the case to the court to obtain execution order.

This tax enforcement mechanism had served until the current tax
Proclamation to proclaimed or till the former tax proclamation no 173/61

30
was repealed. Since the current tax proclamation No 286/2002
proclaimed, enforcement mechanism which is provided under the
Proclamation are not yet been implemented. The directives issued to
implement the tax enforcement are till now at a draft level.

3.2.1 The Draft Directive of Tax Seizure

The writer wants to show how tax enforcement is intend to be

implemented by the draft Directive issued by Addis Ababa City
Government Finance and Economy Development Bureau. The draft is
issued by harmonizing the seizure directives issued by the Ministry of
Finance and Economic Development .The draft has 36 Articles with are
divided in to four parts, this Directive enumerated methods of tax
enforcement.

The first part of this draft express how tax collection and implementation
conducted the power and function of tax Authority and the power of the
officer of the tax Authority.4 The second part of the draft shows how to
seize the property of tax payer could be made reason of un paid tax.5 The
third part of the Derivative shows how to sell the seize of property by
public auction.6 The fourth and the last part of the draft contain
miscellaneous provision which include applicable law and effective date
of the draft,7 this Draft Directive was issued on April 2006, but until now
it is at a drift level.

As we see earlier the tax payers are required to submit their tax
declaration and pay it with in the time prescribed by the tax
proclamation. If the tax payer does not comply with the Proclamation,
they will be punished by sevier penalties i.e. Administrative penalties,
criminal penalties, seize their property and sell for the satisfaction of tax
obligation.

31
However for the last 6 years, at Addis Ababa level seize and sell of tax
payer property couldn’t be implemented, because of lack of directives.8 in
the tax Proclamation.

Since the power to issue directives given to the Ministry of Finance and
Economic Development, the Addis Ababa City Government is also given
the power to issue directives to the Finance and Economic Development
Bureau. But as I indicated above the bureau had only issue a mere draft
Directive.

There are different opinions and views to the late of tax seizure, some tax
payers say the government couldn’t be issue the Directive since it is not
good for the government it creates bad relation ship between the tax
payer and Authority. On the other hand the main reason for the late tax
seizure is the problem of infrastructure the nature of seizes and sells
need special precaution.9

According to Ato Gebrelibanos Wolde Aregay, head of Addis Ababa

Revenue Agency legal department, the draft directive issued had been
sent to the Addis Ababa care taker Administration for further
infrastruction and to approval. But until now the city government
response had no there for the Agency, can not implement tax seizure.10

A data obtained from the Addis Ababa Revenue Agency, shows that
there is 6.465.606. 11 (six million four hundred sixty five thousand six
hundred six birr and eleven cents) on the hands of the tax payers, from
this 90 tax payers property which cover birr 2, 598.726.34 (two million
five hundred ninety eight million seven hundred twenty six birr and
thirty four (cents) tax payer assets had been registered and attached not
to be transferred for third party.11 From the above discussion we can
understand the tax authority can not implement the power to enforce

32
taxes which is vested by the tax proclamation. It also deters tax payers
from transaction.

The current Income Tax Law seizure provisions well criticized by

the Chamber of Commerce. The main grounds of their oppositions are as
follows :-

The tax collecting body may not take final measurement on the
tax payer by presuming that the estimate and tax collector body is
correct.
Because as we all know in practice the tax collector body works
his job by human being and human being by nature can make error and
also exposed to corruption. Now a days the government tried to rectify
these problems. But still now we can’t say that the tax collector,
Employees is free from error and corruption in the investment
implementation of this Proclamation. This is seen in all governmental
Authorities hence, giving power directly to the tax collector to size and
sell the properties of the tax payer is not fair and just, because
individuals rights is guaranted under the constitution to appear and
settle their problems by the court. So the act of the tax collector is clearly
contradicted with the constitution, so this proclamation is un
constitutional.12

3.3 Importance of Seizure for Ethiopia

Income Tax Proclamation No 173/1961 and its subsequent amendment
which served for forty one years are repealed by the current Income Tax
Proclamation No 286/2002.

The reason to repeal the former Income Tax Proclamation is that it didn’t
reflect the realities of the current international tax and business
environment. The proclamation was difficult for the Tax Authority to
administer and to be understood by the tax payer and can not

33
accommodate the current federal structure of the country.13 These
conditions are the major causes for the coming in to force of the current
Income Tax Law.

So to be strong the new Income Tax Proclamation be clearly stated the

procedure of Appeal against the assessment, when a person waive this
right or after the court of appeal render its final decision, the tax payer
are expected to pay their tax obligation. If this person not with in the
time prescribed by law, the Authority can seize their property from their
hand or from third pay party to collect the tax.14 According to Ato
Gebrelibanos Welde Aregay, the importance of seizure to execute the tax
obligation when tax payers fails to pay their tax obligation seizure would
enable the Authority to collect the tax due in short time.15

From the above discussion we can understand that seizure is a new

phenomenon to Ethiopia introduced by the current income tax law and
its importance lies in its ability to avoid tax litigation from the court and
to collect tax with in a short time.

3.4 Problems of seizure

As elaborated in Chapter Two of this paper The Income Tax Proclamation

empowers the Tax Authority to seize goods belonging to the tax payer
and to collect unpaid tax and the expenses of seizure.
Since seizure is a new phenomena for the Ethiopia tax system it is facing
implementation problems and seems to be inconsistent with the supreme
law of the land i.e. the constitution.

3.4.1. Contradiction with the Constitution Principle

The Federal Democratic Republic of Ethiopia constitution declares in its

Article 9, that is the constitution supreme law of the land.16 Therefore,
any law, customary practice or decision of an organ of state or public
34
official which contravenes the constitution principle shall be of no
effect,17 from this constitutional provision, it could be understood that
laws made by legislative organ by other organs, customary practice
,decision of the government (executive action ) etc. can not be made in
away that they contradict the Constitution. Since this topic is an
essential part of this paper to determine whether seizure to enforce tax
liabilities are in consistent with major principle of the Constitution and
the supremacy of constitution and the separation of power, right of
access to justice and the right to property .

A. Violation of Supremacy of the Law

In a democracy no one is above the law, even if he is a king or an elected

president this general principle of law is called supremacy of the law. It
means that every one must obey the law and be held accountable. So
when every thing is done according to the law, there is Supremacy of law.
Supremacy of the Saw has significant bearing on the liberty of the
individual .Because governmental powers which may seriously affect the
right of the individuals. Supremacy of the Law is one of the important of
constitutional principles most democratic, constitutions today consider
supremacy of law as the basis of their constitution.
In addition countries which have good constitution have incorporated the
concept of due process of law .The main objective of incorporating the
concept is to protect the right of person from arbitrary actions of
governments .Due process of law is a bar or a limitation on the power of
law the government. Most countries constitutions have a phrase; no
person shall be deprived of life, liberty, and property with out due
process of law.

The phrases have also incorporated in different articles of the EFDR

constitution. As we see above due process of law is the procedure that
must be followed before the passing of any decision that would affect
35
different rights of individual. If this due process performed we can say
there is supremacy of law. But when we see the Income Tax Proclamation
No 286/2002, some provisions violated the principle of supremacy of law.
These are:-
“…the term “seizure” includes seizure by any mean, as well as collection
from a person who owes money or property to the tax payer ….it shall
have the right to sell the seized goods at public auction or in any other
manner ….”18

“If the tax Authority makes a finding that the collection of such tax is in
jeopardy, a demand for immediate payment of such tax may be made by
the tax Authority and on failure or refusal to pay the collection there of
by seizure shall be law full with out regarding to the 30 days period
…..”19 So as we understand from the above two provisions the legislature
can not protect Citizens right enumerated in the Constitution which is
considered as the supreme law of the land.
Rather the legislature violate the supremacy of law and the concept
of due process of law by stipulating power in arbitrary words, such as by
any means and in any other manner; this phrases give a wider
discretionary power and open- ended opportunity to the Authority in
violation of the principle of supremacy of law.

B. Violation of Separation of Power

The principle of separation of power is essential principle for one country

to build a democratic legal system and it is helpful to protect liberty and
freedoms of an individual, It also control abuse of powers which is
exercised by state organs.
The idea of separation of powers was developed by Montesquieu
French jurist and philosopher who was considered as a father of
separation of powers. Montesquieu says:-

36
 “ There can be no liberty when legislative and executive powers
are joined in the same person or body of lords, because it is to be feared
that the monarch or body of lords will make tyrannical laws to be
administered in a tyrannical way nor is there any liberty if the judicial
power is not separated from the legislative and executive power. If the
three functions merge into one organ, everything will come to end.’’ 20

The doctrine of separation of powers as explained by Montesquieu

explained that the legislative, executive and judicial functions in a state
aught to be kept separate organs for each, working together, but none of
them should be dependant on and discharge the function belonging to
the other.
Because of this each of the three organs of government, that is the
legislative, executive and the Judiciary could not disturb each other. The
function of legislative organ is to make, change and repeal laws, the
executive exercises executive functions, and the functions and the
judiciary to determine or resolve disputes on the basis of question of fact
and law.
The writer tries to compare the concept of separation of power with the
Tax Proclamation as follows:-
Obviously the income Tax Proclamation No. 286/2002 was enacted by
the legislative organ and proclaimed by the competent Authority. But
many provision of this Proclamation empowers the tax Authority to play
the role of judicial organs. We see this power as follows:-
“If any person liable to pay any tax imposed by this proclamation is
in default………….it shall be lawful for the tax Authority to collect such
tax amount, as shall be sufficient to cover expenses of the seizure by
seizing any property belonging to such person.21
From the above provision we can understand that the tax Authority have
discretionary power to seize any property of the tax payer with out
demanding judicial interference.
In addition the Authority have the following right regarding execution.
37
“………It shall have the right to sell the seized goods at a public auction
or in any other manner approved by the Authority 22

This provision also tells us as the Authority have to sell the seized
goods in any manner appropriate to the Authority with out follow the
execution process enumerated under the Civil Procedure Code of
Ethiopia. So from the above two provisions we can under stand how the
Tax Proclamation vested power in contrary to the above concept of
separation of powers. Because seizing and selling of any property require
court decision, at the time of litigation in courts may raises question of
fact and laws, on the other hand the court is considered as independent
organ which is different from the Tax Authority and the tax payer. When
we came to the Tax Proclamation, the Authority has authorized to impose
and excuse tax obligations. Because of the above reason that the Tax
Authority has taken away the power of judiciary that was vested by the
Constitution and empower it self to entertain all justice able matters.
This situation make easily violate the rights of tax payers by who have
deep and arbitrary power. Since decision making power and executing
power on the hand of the Tax Authority the concept of separation of
power is violated.

C. Violation of the Right to Property

Before the discussion of this topic, I want to show how black’s law
dictionary defines the term property:-
“The right to possess, use and enjoy a determinate thing (either a tract of
land or a chattel) the right of ownership < the institution of private
property is protected from undue governmental interference>- also
termed bundle of rights……….” 23

In the strict legal sense it is a bundle of right which are guaranteed and
protected by the government. The term property is extend to every
species valuable right and interest, specially ownership is unrestricted

38
and exclusive right to a thing to possess the right to dispose of a thing in
every legal way, and to exclude every one from interfering with it, the
above expression shows that there is a right and legal relations among
the holders and the states or individuals. So property is expected to
protect such right and relation by public law. On the other hand the
issue of property is the concern of all and subject of discussion on many
occasions at a global level. The universal declaration of human rights
/UDHR/declares regarding to the to property as follows:-
“No one shall be arbitrary deprived of his property except in accordance
with the law” 24

In addition the African human right charter declared as follows:-

“The right to property shall be guaranteed “23
As we see from the above two provisions the right to property is the
part of human rights, this right can not be violate with out due process
of law, but in practice most of this right is violated by one of the organ
the government mainly by the executive organ. This organs uses
arbitrary powers and take away the property of individuals contrary to
the principle of due process of law.
So to bring dynamic economic development and legal and social
stability in any country the right to property must be protected by
harmonizing with the above two human right provisions. Because
ignoring the right to property is the cause for poor economic
development, social crises.
The writer relates and discusses the issue of property right
protection in the Federal Democratic Republic of Ethiopia Constitution
and address the problem under the Income Tax Law.
The Federal Democratic Republic of Ethiopia Constitution
categorizes property in various ways as any tangible product that has
value and produced by the labor creativity enterprise or capital an
individual citizens, association which enjoy judicial personality under the

39
law to own such property and provides specific protection for each
category 26

On the other hand, the Constitution explains how to restrict the right to
property 27 The objectives for such restrictions are:- safe guarding
national security, prevention of crime, public peace, protection of health,
public morality and rights and freedoms of others.
The enumerated objectives of limitation up on such right may be justified
by economic political or social reasons.
In spite of this, the Income Tax Proclamation. No. 286/2002 has
empowered the Tax Authority to seize the property of tax payers for the
purpose of collecting tax due.
The legal concept of seizure is: - ‘‘The act of taking possession of property
for violation of law or by virtue of execution of judgment ‚’’ 28

from the concept we can understand that to seize somebody’s property

first, violation of the law by person must be ascertained by the court,
then the Judgment debtor money, prosperity seize and sold through due
process of law or by proper authority to satisfy the judgment.
On the contrary the above the tax Authority seizing and sell the tax
payer property with out Authorization of the competent court and with
out due process of law.

D. Violation of the Right to Access to Justice

The Federal democratic Republic of Ethiopia Constitution recognizes the

right to access to justice as a fundamental human right:-
“Every one has the right to bring a justice able matter to and to obtain a
decision or judgment by a court of law or any other competent body with
judicial power“29
According to the above provision when the legal interest of an
individual or an association is violated by government organ or by any
association, the one who has legal interest so affected or violated can

40
bring the case to the court or another competent body with judicial
power.
Tax Proclamations have also tried to harmonize with the above
constitutional principle as follows: -
“Any tax payer who objects to an assessment may appeal to the Tax
Appeal Commission …. upon the fulfillment of the requirements here
under”30 As we understand from the above provision to lodge appeal
against the Tax Authority decision, there is a requirement to be fulfilled.
Other wise the appeal will be rejected. One of the requirements to be
fulfilled by the tax payer to lodge and appeal is provided as follows:-
“No appeal shall be accepted by the Tax Appeal commission unless; a
deposit of fifty/50% of the disputed Amount is made to the Tax
Authority” 31
This means where a person received an assessment from the Tax
Authority to pay 1,000,000.00 /one million Birr/ and if he went to
submit his appeal, the tax payer will be required to deposit 500,000 /five
hundred thousand Birr/ with in 30 days from the receipt of the
assessment notification or from the date the review committee gives
decision. If this requirement fulfilled by the tax payer he can submit his
appeal, if he doesn’t his appeal will be rejected.
On the other hand if the tax payer dissatisfied by the decision of the
Appeal Commission he has right to submit his appeal with in 30 days of
regular courts. The jurisdiction of this appellate court is confined to
review a question of law.32 But to submit appeal to the regular court the
tax payer or the appellant required to pay full payment of the tax
determined by the appeal commission. 33 Other wise the appellate regular
court shall net be accepted the appeal.34
As we seen from the above discussion any tax payer who is
dissatisfied with the assessment of the tax Authority to submit his
objections for the independent judicial body he will be required to fulfill
requirement. These requirements are absolute requirements, there is no
41
exception to poor tax payers, who have no money for advance deposit.
Because of these constitutional guaranties of access to justice of citizens
is highly violated by the Income Tax Law and it makes the tax Authority
as a judge and judgment creditor.

3.5. Practical problems

The Addis Ababa City Government faced many problems relating to the
selling of the seized items. The main problem is the non- ratification of
the draft Directive. 33

The Addis Ababa City Government Finance and Economy

Development Bureau had submitted the Draft Directive before two years,
to the city is care taker administration. 34

Some of the major decisions required to be fulfilled, the place

where the collected items are stored.35 Who and how to determine the
amount of property to be seized and by who auction to be conducted.36
To facilitate for the management of the un sold items. The Agency had
also mentioned some solutions on the later regarding the problems with
reference to the experience of the Commercial Bank of Ethiopia, and to
be represented a person from Addis Ababa city courts for the executed
the size item.37 But until now no organ of the government gave answers
to the latter.38 because of this the agency Draft is not implemented in
accordance with the tax law.

42
 CONCLUSION AND RECOMMENDATION

The tax system of every country play great role in the maintenance
of peace and stability of the government. A good tax system also should
respect all rights and ascertained by the Constitution of the country.

In Ethiopia tax collecting was started in 15thc, with out statutory

bases. In the history of Ethiopia Proclamation No 8/1942 the first
Proclamation, this Proclamation was proclaimed in 1942 and impose
taxes on certain incomes only. After 19 years In 1961 Income Tax
Proclamation No 173/1961 proclaimed and served for around 40 years.

The federal law makers repealed this law and introduced the new
Income Tax Proclamation No 286/2002 at the year 2002. This Tax Llaw
based on the 1995 FDRE constitution and with a view to rising
government revenue and to bring effective resource distribution by
harmonizing the current federal structure of the country.

Regarding on how to enforce tax obligation the former Tax

Proclamation the tax Authority have to go to courts to get execution
order. on the other hand the current Tax Proclamation empowers the
Authority to size and sell the tax payers properly in any manner
appropriate for the Tax Authority. The Authority has also the right to
attach the salary or wages of an employee due to the failures of paying
tax with out the Authorization of courts.

However, seizure and sell of the tax payer’s property is not

conducted immediately after the assessment notice delivered, except
under jeopardy of assessment situations. To size tax payer’s property the
Authority must fulfill the requirement provided by the tax law.

43
 In order to implement the law, the draft directive is not ratified
for different reasons, and can not implemented seizure for the last 6
year’s beyond registering tax payer’s property and attached the property
so as not transfer to third party. Whoever, as we have seen above the Tax
Proclamation has vested powers to the Authority in contradiction with
the principles of Constitution, such as supremacy of law, separation of
power, right of access to justice and the right to property.
Therefore, we can say judicial power is usurped and transferred it
to the Tax Authority in violation of the Constitutional principle, and
proclamation No. 286/2002 proclaimed with out harmonizing it to the
supreme law of land.

Based on discussion the recommended solutions are:-

A. Normally the law maker can not issue laws which contradict with the
supreme law of the land, but as we see in the above discussion,
Proclamation No 286/2002 issued in contradiction Article 9 of the
Federal Democratic Republic of Ethiopia Constitution.
So the tax laws have to be amended to be Harmon with the
supreme law of the land.
B. The idea of separation of power is highly violated by the Income Tax
Proclamation. Because as we see in the discussion the Tax Authority
has vested power on Tax Authority to impose tax and enforce the
obligations by seizing tax payer’s property. This power also makes the
Authority judiciary and executive, so the Tax Proclamation needs to
be amended by taking the judicial power from the Authority back to
the judicial body.
C. The right of access to justice is excluded by the Income Tax
proclamation. Any tax payer who objects to an assessment of the
authority and submit his objection for the judicial body. The law

44
 obliges the tax payer to pay full or half of the disputed money in
advance with out exception including poor tax payer.
Since the requirement provided on the tax law contradicts the
right to bring justice able matter to a court of law and to obtain decision
by the judicial body. Therefore these provisions of the law contradict with
the right of accesses to juice. Hence there is a need to have requirement
for the poor people to seek and access justice with out advance payment
like suits by poor people as provided under the Civil Procedure Code.

45
 END NOTES ON CHAPTER ONE

1. H.L.Bhatia Public Finance, New Delhi, Vikas Publishing House

Pvt. LTD, 18TH ED, 1995, p.39.
2. Hennery Campbell, Black’s Law Dictionary, 4th ed, (1954), P.
1662.
3. Daniel Shaviro Federalism in Taxation (1993) P.10.
4. Boris. I. Bittker. Taxation of Foreign Income, (1960). P. 160
5. Patricia. D. White Tax Law Vol.1.P.10
6. Encyclopedia American Vol.26.P.316
7. BRYAN.A.GARNER, Black’s law dictionary, 8th ed, P.778
8. Income Tax Proclamation No 286/2002, Art, 2(16)
9. Supra Note 7, P. 1496
10. The new Encyclopedia Britanica, Vol, 28, 15th ed (1994).P.399
11. Vander Lindon, an Introduction to the Source of Ethiopian
legal History, from 13thC, J.E.L Vol.3 No1.P.229
12. Budgetary growth of Ethiopia which Emphasis Empirical study
ministry of finance, (April, 1989) P.23
13. Ibid
14. Proclamation No. 1942. A proclamation to Provide a Tax on
Land.
15. Proclamation No. 107/1942. A proclamation to provide tax on
persons
16. H.L. Bhatia, Public Finance, 18th ed(1994) P. 49
17. Gebre worku, Tax Accounting in Ethiopian Context 1st ed,
AAU College of Commerce, 2006, Addis Ababa P. 16
18. HUGH. J.Abdult, Comparative income Taxation A structural
Analysis (1997), P. 155.
19. ALKA. GUPTA, Public Finance and Tax planning, 5th ed, (2001).
P.153
20. Ibid
21. Ibid P. 154
22. Ibid P. 155
23. World Tax Series Taxation in France, Chdcago, (1966) P. 116.
24. Supra note 5. P. 14
25. Supra Note 19. P. 156
26. Ibid
27. Ibid P. 157
28. Ibid
29. Supra note 8 Art. 8
30. Ibid, Art, 8 /1/
31. Ibid Art 8./2/2
32. Ibid. At 8 /3/
33. Ibid Art 8 /4/
34. Ibid (a)
35. Ibid (c)
36. Ibid (b)
37. Ibid (d)
38. Ibid (e)
39. Ibid (f)
40. Ibid (g)
41. Supra note 19.P.5
42. Ibid. P. 55
43. Ibid. P. 56
44. Ibid
 END NOTES ON CHAPTER TWO

1. Income Tax Proclamation 2002 Proc. No. 286/2002, Fed,Neg.Gaz.

Year 8.No. 34 Art. 38
2. Bryan A Garner A dictionary of Modern legal usage,
2nd, ed, (1995) p.p678.
3. Supra note 1, Art. 2(13)
4. Constitution of the federal democratic republic of Ethiopia,
(1995). Art 97
5. ibid, Art 96
6. Addis Ababa city Government Revised Charter Proclamation
No. 361/2003, Fed, Neg Gaz, 9th year No. 86 Art. 52
7. Supra note.1.
8. I bid Art. 32. (A)
9. Supra note 1Art. 42 Ibid Art. 42 (A)
10. Ibid Art. 69. (1)
11. Ibid. Art. 29. (2)
12. Ibid Art. 56. (3)
13. Ibid Art. 64. (4)
14. Ibid Art. 87
15. S.K SINGH Public Finance in Theory and Practice, ed. 2004
P.257.
16. Supra note 1. Art. 96.
17. Supra note. 15.P.258.
18. Supra note. 1. Art.103.
19. Supra note .1. Art 77 (1)
20. Ibid. Art. 73. (1)
21. Ibid. Art. 72.
22. Ibid. Art. 76. (B)
23. •••• ••••••• •••••• ••••• ••• •••• ••• 3/1997
24. Supra note. 1. Art. 39 (1)
25. Ibid. Art 76 (2)
26. Ibid. Art. 105 (2)
27. Ibid. Art. 107
28. Ibid Art. /12/1/
29. Ibid. Art. 77 /4/
30. Bryan `A` Garner A dictionary of modern legal usage 2nd, ed
(1995) P.301
31. Supramote 1. Art 43
32. Ibid. Art. 43 (A)
33. Ibid. Art. 64 (1) (A)
34. Ibid Art. 66 (1) (b)
35. Ibid. Art. 68 (2)
36. Ibid. Art. 67 (1)
37. Ibid. Art. 51 (1)
38. Ibid. Art. 53 (1)
39. Ibid. Art. 48 (1)
40. Ibid. Art. 47 (1)
41. Ibid. Art. 49
42. Ibid. Art 47
43. Hennery Campbell, Black’s law dictionary, 6th, ed, (1990). P.569
44. Supra note 1. Art. 4
45. Ibid. Art 77
46. Ibid. Art. 105
47. Ibid. Art. 105/1/2
48. Ibid. Art. 105/3/
49. Ibid. Art. 105/2
50. Ibid. Art. 107/1/•
51. Ibid. Art. 107/2/•
52. Supra note. 4. Art. 37
53. Interview conducted with Ato Shiferaw Gule President of Addis
Ababa tax appeal commotion, April 2008.
54. Supra note.1. Art. 115/1A
55. Ibid. Art. 115/1/b
56. Ibid. Art. 112/1/c
57. Ibid. Art. 112/2
58. Ibid. Art 112/2/
59. Ibid. Art. /12/4/
60. Ibid. Art. 73/3/
61. Ibid. Art. 77/4/
62. Ibid. Art. 77/1/
63. ••• ••••• •••••• ••••• ••• ••••• •••• ••••• ••••• ••••
••••/••• ••••• •••••• ••• •••••• ••••. 1998 •.• •••••••
•••• ••• •• •••• 1997• Art. 7.
64. Supra note 1. Art. 73 /1/2/
65. Ibid. Art. 73/1/b
66. Ibid. Art. 80 /3/
67. Ibid. Art. 80 /3/
68. Ibid. Art. 80 /4/
69. Ibid. Art. 77 /1/
70. Ibid. Art. 77/4/
71. Ibid. Art. 77/5/
72. Ibid. Art. 81/2/
73. Supra note . 63 Art. 12/4/
74. Ibid. Art 12/5
75. Ibid. Art. 12/6
76. Ibid. Art. 12/7/
77. Ibid. Art. 12/15/
78. Supra note 1. Art. 78
79. Supra note 63. Art. 12/8/
80. Ibid. Art. 12/10/
81. Ibid. Art. 12/13
82. Ibid. Art. 13
83. Supra note 1. Art. 77/7/A
84. Ibid. Art. 77/7/b
85. Supra note 63. Art. 11/9/
86. Ibid. Art. 11. 2 and 3

END NOTES ON CHAPTER THREE

1. Hennery Campbell, l BLACK’S Law DICTIONARY, 6th ed, P 1359
2. Ministry of finance and economic development delegation report up on
visiting SOUTH AFRICA 2002 ( un published )
3. Interview conducted, with Ato Gbrelibanos weldaregay the head of
legal Department of Addis Ababa revenue agency. April 2008
4. ••• ••••• •••••• ••••• ••• /•••/ ••••• ••• •••• •••• /•••/
••••• •••••• •1998 ••• •••••• •••• /•••/•• 1
5. Ibid ••, 4
6. Ibid ••, 10
7. Ibid ••, 16
8. supra note 3
9. Ibid,
10. Ibid,
11. Data collected in Addis Ababa Revenue agency, April 2008
12. ••• ••• •••• ••••• •••••• ••• ••• •• ••.• •••• ••• •• ••••
••••••• •••• 1994•.•
13. ••• ••• ••• •••• ••••• ••••• ••••• •••• •• ••• •••• •••••
•••• •••, •• 27, 1994 •.• •• 2
14. supra note, 3
15. Ibid,
16. constitution of the federal democratic of Ethiopia, 1995, proc,1 /
1995, fed, Neg, gaz, year 1, No 1 art, 9
17. Ibid
18. Income tax proclamation No 286 / 2002 art, 77 / 1 /
19. Ibid art, 77 / 2 /
20. Distance education, constitutional law 1, module 2 .p43 smuc A.A
2004
21. supra note 16 Art 77/1
22. Ibid art 77/2
23. Bryan. agarnner blacks law Dictionary, 8th, ed, p 1252
24. universal declaration of human right, Art,17/2/
25. African human right charter, Art, 14
26. supra note 14.Art 40
27. Ibid Art 26/3
28. supranote,1 p.1389
29. supra note 14 Art 37/1/
30. supra note 16.Art /07/1/
31. Ibid. Art /o7/2
32. Ibid Art ,/12/1
33. Ibid Art./12/4
34. supra note .3
35. A.A city Administration Revenue agency, a letter written to Bureau
of Justice and legal affair aref,no•.•/4/10 dated 22/12/98 E.c
36. Ibid
37. Ibid
38. supra note 3

BIBLOGARAPHY
l. Books
1. H.L Bhatia, Public finance, 18thed, New Delhi Bikes publishing pvt, ltd, 1995
2. Hennery Campbell, Balk’s law dictionary, 4thed, west publishing,co.1954
3. Daniel Shaviro, Federalism in taxation, the case for greater uniformity, the AEl
press publisher for the American Enterprise institute, Washington, USA, 1993
4. Boris, I. Bittker, Taxation of foreign income, 2nded, west publishing 1990
5. Patricia, D, White, Tax Law, vol, l, Dart Mouth, Singapore. 1995
6. Encyclopedia of American, 15 thed, vol,26. 1940
7. Bryan A.Garner, Black’s law dictionary 8thed, west publishing.
8. Encyclopedia Britinica, 15thed vol 28,1994
9. Gebrie Worku; Tax Accounting in Ethiopia Context, AAU College of
commerce, 1sted, Addis Ababa, 2006
10. Hugh J.Abdult, Comparative Income Taxation a Structural Analysis , kluer
international publisher, Netherlands, 1997.
11. World tax series taxation in France, Chicago, 1996.
12. S.K singh public finance in theory and practiced. 2004.
13. Vanderlindon, An Introduction to the source of Ethiopia Legal history, Vol.3.
Addis Ababa. 1958.
II. LAWS
1. Income tax proclamation No 286/2002. Fed, Neg ,Gaz,year,8 No 34
2. Proclamation No, 107/1942. A proclamation to provide for a tax on Land,
Addis Ababa .
3. proclamation No 8/1942 A proclamation to provide a Tax on persons, Addis
Ababa,1942 .
4. •••• ••••••• •••••• ••••• •••• ••• •••• •••• •1997 •••
••••, ••• •••.
5.
Constitution of Federal Democratic Republic of Ethiopia, proc, No1 /1995,
Fed,Neg,Gaz 1st yr, No,1 .
6. Universal Declaration of Human Right’s, 1948.
7. African Charter on Human and People’s Right’s 1981.
III. Other materials
1. ••••••• •••• ••• •• ••• ••••• •••••• ••••• ••• •••••
••• ••••• •••• ••••/••• •••••• •••••• •1998 ••• •••
•••••• •••• ••• •••
2 Department of Distance Education, Constitutional Law Module, St,
Mary’s University College, 2004
3. •••• ••• ••• ••• •• ••• ••• •••• ••••• •••••• ••• ••
•••• •••••• •••• 1994 •/•.
4 Addis Ababa City Revenue Agencies, A Letter written to Bureau of Justice and
legal Affair, Ref No ••/4/1998 E.c
5. ••• ••• •••• ••••• ••••• ••••• •••• •• ••• •••• •••••
•••• ••• •• 1994 •/•.
6. Ministry of Finance, Budgetary Growth of Ethiopia, with Emphasis Empirical
Study, Addis Ababa 1998
IV Interviews

An Interview Conducted with Ato Gebrelibanos welde Aregay Head of Addis
Ababa Revenue Agency Legal Department, April,24,2008 Addis Ababa ( in his
office).

An Interview Conflated with Ato shiferw Gule president of Addis Ababa Tax
Appeal Commission. April, 25,2008 Addis Ababa (in his office).

Statement of Declaration

I here by declare that this paper is my original work and I take full
responsibility for any failure to observe the conventional rules of
citation.

Name------------------------------
Signed ----------------------------

ANNEX’S
 Draft Directive of Tax Seizure.------------------

Annex 1
 Recommendation of Addis Chamber of

Commerce on the Draft Income tax law. -------- «

 ••• ••• ••• •••• ••••• ••••• •••••

•••• •• ••• •••• ••••• •••• •••.

••• ••• -------------------------------------------

------ « 3

 A Letter written to Addis Ababa City care taker

 Administration justice and Law Affairs Bureau.------

« 4

 A Latter written to Federal Transport Authority

 Addis Ababa Transport Branch with Response.--------

« 5

 A Letter written to Bole Sub City Administration

Land Development and Administration Department. ------

« 6