Abstract:
Accountancy firms have supplemented their traditional trade of selling accounting and auditing services by diversifying into a variety of other products and services. The purpose of this study was to examine the role of accountancy firms for tax avoidance and to show some evidence of the strategies and tactics used by accountancy firms to sell schemes that enable their clients to avoid Business tax and payroll taxes in the case of Dessie city Administration. In order to attain the objectives of the study, quantitative research approach was used. As a means of data collection instrument; closed ended questionnaire were applied. The population of the study was 50 tax accountants, 16 tax auditors, and 3 management members in Dessie city administration. From a total of 69questionnaires distributed, 81% of questionnaire were correctly filled and applied in the study. In order to analyses, interpret and present the data captured via questionnaire, Statistical Package for the Social Sciences(SPSS) were used. Both inferential and descriptive analysis methods i.e., percentage, means, standard deviation, correlation, regression and narrative analysis were used. With regard to the survey output, with the exception of Income splitting, Transactional Restructuring, Competitive tax Environment, through, conducted correlation analysis revealed the existence of statistically significant positive association between the dimensions of tax avoidance and Accountancy firms.