Corruption is a challenge to development. Scholars define corruption as abuse of public officernfor private benefit. Using this working definition, this study explores the main causes, thernaggravating factors, work areas vulnerable to corruption and the means to combatrncorruption.Ethiopian Revenue and Customs Authority was taken as case study institution.rnInterviews were conducted with leaders and experts in the institution. From 2,905 populationrnsize in the selected four branches,one hundred fifty seven survey questionnaireswerernadministered to the staff of Ethiopian Revenue and Customs Authority by stratified sampling. Thernfindings from this study confirm that corruption is increasing in extent and type (pity and grandrncorruptions). The perception of employee of the institution and the tax payers confirm thernprevalence of corruption. Corruption has becomes a day to day tradition and considered asrnâ€œnormalâ€transaction, in terms of perception, including in ERCA office. From the findings of bothrnprimaryand secondary sources, there need to be enhancedholistic anti-corruption efforts andrnreforms, commitment of leaders and experts, building of strong institutions and corruptionrnprevention and enforcement mechanisms at all levels. Creating an educating society starts fromrnmodeling students in ethics, inclusive development and coordinated approach in the staffs,rnleaders of the organization and the country at general Key Words: Challenges, consequences, corruption, perception, commitment, ethics, nationalrnintegrity system, Ethiopian Revenue & Customs Authority, Federal Attorney General