The impact of the merger of Income Tax Department with Sales Tax Department with their associated accounting and legal policies in the reduction of tax evasion

Abstract

The current study aimed at identifying the impact of the integration of the merger of Income Tax Department with Sales Tax Department with their associated accounting and legal policies in the reduction of tax evasion. In order to achieve the objectives of the current study, the researcher has applied the Descriptive approach for data view, while he has applied the analytical approach for the analysis of the results of the current study. The study population consisted of the auditors of Income & Sales Tax Department in medium taxpayers directorates working in auditing  whose number was (150) auditors. A questionnaire was distributed on the study sample consisting of (150) respondents.(128) questionnaires were retrieved ,(22) were excluded because they were not valid for analysis. The actual percentage of the study sample was (85,3%).

The researcher, having analyzed the responses of the study sample using SPSS, he has concluded a set of results, the most important are:

• There is a statistically significant difference of the merger of Income Tax Department with Sales Tax Department in the reduction of tax evasion in Jordan.
• There is a statistically significant difference for the merger of information systems in Income & Sales Tax Departments in the reduction of tax evasion in Jordan.
• There is a statistically significant difference for Anti Tax Evasion Directorate in the reduction of tax evasion in Jordan.
• There is a statistically significant difference for the accounting and legal policies of Income Tax Law no. 28 of 2009 in the reduction of tax evasion in Jordan.

In light of the results of the current study, the researcher recommends the following:

• The activation of the role of Directorate of Information in the Department and supplying it with experienced staff and necessary equipment.
• The activation of the role of Anti Tax Evasion Directorate in the Department and supplying it with experienced staff and necessary equipment.
• The activation of procedures applications with regard to the in advance deduction that shall be imposed on business activities.
• Rehabilitation and training of Income & Sales Tax Departments staff and increase their competencies through the necessary training programs.
• Raising the taxpayers ‘awareness regarding the importance of tax and its role in the national economy.