The Role of the Income Tax Law in Jordan in Limiting Tax Evasion from the Perspective of the Auditors of Income & Sales Tax Department & the Members of Experts Society of Income & Sales Tax

Abstract

The aim of this study is to explain the role of Jordanian Income Tax Law

to alleviate tax evasion from points of view of the auditors of Income & Sales

Tax Department & the members of Income & Sales Tax Experts Association

through four independent variables: procedures of processing tax statement

form, the incentives and exemptions, the penalties and fines, and tax rates.

In order to achieve the study objectives, a questionnaire was designed based

essentially on the texts of the Jordanian Income Tax Law No. (28) , 2009 and

the related instructions and regulations.

The study population consisted of: 1- All staff authorized to practice tax

auditing (auditors) in all directorates of income & sales tax department, and

all centers of tax services in the various governorates in Jordan. 2- All the

experts of the income and sales tax in Jordan. The study used the t- test and

the independent samples t- test to test and investigates hypotheses.

After analyzing the collected data the following are the results: the

procedures of processing tax statement form, and the incentives and

exemptions, did not have a role in limiting tax evasion in Jordan from both

points of views, with arithmetic mean that didn’t exceed 3.24, while the

penalties and fines, and the tax rates have a role in limiting tax evasion in

Jordan from the point of view of both exceed 3.33. I recommend the necessity

to reconsider refocusing on the conditions and procedures of processing tax

statement form, from the Income and Sales Tax Department, giving more

incentives and exemptions to taxpayers, and the activation of the penalty of

imprisonment.