2000-2004(Reasons and Possible Remedies)Tax Evasion by the Self-Employed in Jenin

2000-2004(Reasons and Possible Remedies)Tax Evasion by the Self-Employed in Jenin PDF

Mohammed A. Mohamoud Juma'a

Supervisor(s)

Dr. Tariq el-Hajj -

Discussion Commity

183 صفحة

Abstract :

Abstract This study sought to identify the nature, and prevalence of tax evasion by the self-employed in Jenin. It also endeavored to find out the reasons behind the spread of this phenomenon given its bad effects on the national economy. In chapters one and two, the researcher set a theoretical framework for the study. He began with the nature of tax in general, and free trades subject to taxes and then he moved to the reasons which lead the self-employed to evade tax payment. To these ends, he made a review of relevant literature, tax laws, and Palestinian Income Tax Law of 2004 in particular, effective in Palestinian Territories. He also dwelt on some tax laws in neighboring countries. In chapter three, the researcher conducted a field survey of the self-employed in Jenin in order to find out the reasons behind tax evasion according to them. A random sample of 297 tax evaders, all self-employed, was chosen to identify the factors contributing to tax evasion. To this end, a questionnaire was developed. For analysis of results, the researcher used SPSS. After collection and analysis of data, it was found that there were drawbacks in the Palestinian Income Tax articles particularly pertaining to concessions and tax breaks given to the self-employed in comparison with counterpart laws in other countries. There was also a drawback in the law text pertinent to tax collection from the self-employed by way of discount at source. This has led to the waste of huge amounts of money due to the government coffers (treasury). It also found that there was a lack of sufficient coordination, in the field, between tax departments and other government agencies, on exchange of information on tax payers. The respondents said that the implementation of taxation, lowering tax rate and improvement of the economic situation are all considered important factors to bring down percentage of tax evasion by the self-employed. In the light of these findings, the researcher recommends the development of a joint information system for the tax departments, government ministries and agencies. He also recommends equal tax treatment and tax fairness in a way that creates a balance between tax categories and the ability of tax payers. He also recommends launching tax awareness campaign among tax payers and removing the psychological barriers between tax payer and tax administration. This can be through holding workshops, seminars, information booklets and apprising tax payers of tax changes and modifications. He also recommends simplification and easing tax procedures, and treating tax payers with respect, creating an atmosphere of confidence and relaxation between tax payers and tax authorities. Finally, the researcher suggested providing training courses for human cadres in each tax department to increase their tax collection skills particularly from the self-employed.

Full Article