Tax Evasion in Jordan: Reality, Causes and Results

Abstract

This theoretical study aimed to describe the reality of tax evasion in Jordan based on the official figures and statistics issued by the Ministry of Finance and the Income and sales This theoretical study aimed to describe the reality of tax evasion in Jordan based on the official figures and statistics issued by the Ministry of Finance and Income and sales tax t ax Department in addition to the studies and research es conducted on tax evasion in Jordan, with a review of the main reasons and methods of tax evasion, The Income Tax and Sales Tax Law, and review of the main consequences of tax evasion.taxta t Department in addition to the studies and researches conducted on tax evasion in Jordan, with a review of the main reasons and methods of tax evasion, The Income Tax and Sales Tax Law, and review of the main consequences of tax evasion. The study found that tax evasion reached JD 1.5 billion in 2016, while tax revenues collected in the same year amounted to JD 3.828 billion. The study found that tax evasion reached JD 1.5 billion in 2016, while tax revenues collected in the same year amounted to JD 3.828 billion. the Commitment ratio of income tax for the year 2014 was 69%, while during the year 2015 it was 62%. The Commitment ratio of income tax for the year 2014 was 69%, while during the year 2015 it was 62%. The Commitment ratio of sales tax for the year 2014 was 87%, while in the year 2015 it was 93% . The Commitment ratio of sales tax for the year 2014 was 87%, while in the year 2015 it was 93%. And that tax evasion has effect on The revenues of the government and the continuing deficit in the budget, which according to the figures of the General Budget Law for the fiscal year 2017nearly one billion dinars, and thus decrease in services performed by the government for citizens and increase the burden of internal and external indebtedness, noting that the penalties contained in the Income and Sales Tax Law is sufficient and gathering Between the penalty of fine and, but there is a lack of application, especially the application of prison sentence. And that tax evasion has effect on The revenues of the government and the continuing deficit in the budget, which according to the figures of the General Budget Law for the fiscal year 2017nearly one billion dinars, and thus decrease in services performed by the government for citizens and increase the burden of internal and external indebtedness, noting that the penalties contained in the Income and Sales Tax Law is sufficient and gathering Between the penalty of fine and prison sentence, but there is a lack of application, especially the application of prison sentence.

Keywords: tax, tax evasion, the budget deficit.