The Role of the 28 Modified Income and Sales Tax Law for the Year 2009 in Reducing Tax Evasion

Abstract

This study aims to find out the role of the exemptions granted for companies to reduce tax evasion, the size of sales and their role in reducing evasion, and the role of the legal form and the development of moral awareness in reducing tax evasion.  The researcher distributed 56 questionnaires to the competent authorities in the Income Tax Department. It was found, through statistical treatment that, there is a role country’s of the exemptions and sales, the legal nature, and the development of moral awareness in reducing tax evasion. It is recommended to increase ethical and religious awareness of taxable categories through workshops and seminars to encourage community members to participate responsibly, and to work to achieve Tax Justice, which helps to develop satisfaction of the tax among tax community members.

Keywords: Income, Sales Tax Law, Tax Evasion.