At present, the Revenue Department plays the largest roles in securing revenue for the Government by way of collecting taxes and duties. To collect taxes as required by the financial goals which increase each year; the Revenue Department has to always improve its administration, to raise the level of efficiency of the officers and also to bring the tax payers to the voluntary compliance. From this study, it was found that the Revenue Department has to encounter many problems: 1) Problems of the Government’s Finance; the Revenue Department has to try to fulfill the goals assigned. 2) Problems of tax payers; tax payers’ lack of social consciousness and responsibilities which leads to tax evasion and tax avoidance. 3) Problems of administration process; such as planning, organizing, staffing, directing, coordinating, reporting and budgeting require to be improved. 4) Problems in operation work; tax payers did not know the law of taxes and regulations as well as they should. Besides, officers also lack of knowledge and understanding of works. In this study, the writer has set forth two hypotheses and received the following results; First, accept the hypothesis that “Tax administration of the Revenue Department at present is not as effective as it should be, because there is lack of developing manpower who work in tax administration”. Second, accept the hypothesis that “Decentralization of operation function to the area offices (Saw Paw Taws) enable the Revenue Department to better administer the collection of taxes and to better service the tax payers”. The way of solving the encountered problems can be devised by sources of problems as follows: 1) Tax payers - by seeking measures to create the voluntary compliance. 2) Staffing - by improving personnel efficiency. 3) Legislation – by eliminating tax loopholes.