The phenomenon of tax evasion in both Iraq and Jordan for the period 2000-2018/An analytical study

Abstract

The phenomenon of tax evasion is a global phenomenon that all countries suffer from. Economic activities are almost without the presence of tax evasion, and there are strong indications that this phenomenon is constantly increasing, and that most countries are trying to control tax evasion, but the percentage of its severity varies from one country to another. As a result of the degree of tax awareness among citizens, the importance of research in addressing the problem of tax evasion comes by identifying the most important reasons and methods for taxpayers to evade paying the tax imposed on them and the proposed means to combat tax evasion, and setting laws to reduce this phenomenon. The reasons include moral, political, administrative, legal, economic, then social, and the phenomenon of tax evasion, the most important of which are economic, social and political implications. Our study touched upon the size of the available means to confront tax evasion, such as preventive, control and penal means. The study showed the contribution of taxes in their total direct and indirect to total revenues and public expenditures on the one hand, and their ratio to the total volume of GDP on the one hand. In the first indicator, the ratio of taxes to total public revenues, the share of total taxes in Iraq varied as an average period of (2000-2018) about (9.5) in Jordan, it reached (67.3) for the same period. As for the percentage of the contribution of taxes in financing government spending, it ranged as an average for the period (2000-2018) in Iraq about (8.5). In Jordan, the percentage of its contribution to it reached (50.2) as an average for the same period. With regard to the index of the total tax burden, the ratio of tax revenues to the gross domestic product ranged (1.2) in Iraq and (16.2) in Jordan.