Associate prof. Dr Abdullah Mohammad Ayedh
Faculty of Economics and Muamalat Universiti Sains Islam/ Malaysia [email protected]
Researcher Tariq Samih Hanandeh
PhD Student in the Faculty of Economics and Muamalat, Universiti Sains Islam/ Malaysia
The phenomenon of tax evasion and administrative and financial corruption is a global phenomenon that affects a wide range of countries, and it has become a fundamental problem facing their economies, so the research problem is to know the negative effects of the phenomenon of tax evasion and administrative and financial corruption, represented by the widespread waste of national wealth and the loss of real development opportunities, and also bears the state costs and material burdens. morale and the emergence of differences in the classes of society, so we have to make more efforts to reduce the phenomenon of tax evasion and administrative and financial corruption. The study concluded through the theoretical side to a set of results, the most important of which is that the main reason is the high cost of living as a result of the high general level of prices, which contributed In increasing tax evasion and administrative and financial corruption, as well as not touching taxpayers of the services provided to them by the state, the study recommended the need to spread intellectual, economic, social and moral awareness of society and campaign against tax evasion and administrative and financial corruption is a national duty in which everyone participates in a currency position and this in turn improves economic performance the state, The researchers followed the descriptive approach in order to reach a clarification of the ideas presented in the study by reviewing all previous studies related to the phenomenon of tax evasion and administrative and financial corruption in Jordan, and then extracting the results and recommendations that were reached.
Keywords: Tax evasion, administrative corruption, financial corruption, regulatory authorities, Jordan.
أسباب التهرب الضريبي والفساد الإداري والمالي وطرق مكافحته في الأردن
الباحث / طارق سميح حسين هناندة
طالب دكتوراه / كلية الاقتصاد والمعاملات تخصص محاسبة / جامعة العلوم الاسلامية ماليزيا
د. مشارك / عبد الله محمد العائض
عضو هيئة تدريس / جامعة العلوم الاسلامية ماليزيا
تعد ظاهرة التهرب الضريبي والفساد الإداري والمالي ظاهرة عالمية تؤثر على مجموعة واسعة من الدول, وأصبحت مشكلة أساسية تواجه أقتصاداتها, لذا تتمثل مشكلة بمعرفة الآثار السلبية لظاهره التهرب الضريبي والفساد الإداري والمالي والمتمثلة بالهدر الواسع للثروات الوطنية وضياع فرص التنمية الحقيقية وايضاً يحمل الدولة التكاليف والأعباء المادية والمعنوية وظهور فوارق في طبقات المجتمع, لذا يتعين علينا بذل المزيد من الجهود للحد من ظاهره التهرب الضريبي والفساد الإداري والمالي، وقد خلصت الدراسة من خلال الجانب النظري إلى مجموعة من النتائج من أهمها ان السبب الرئيسي هو ارتفاع تكلفة المعيشة نتيجة ارتفاع المستوى العام للأسعار مما ساهم في زيادة التهرب الضريبي والفساد الإداري والمالي وايضاً عدم لمس المكلفين الخدمات المقدمة لهم من الدولة, وأوصت الدراسة إلى ضرورة نشر الوعي الفكري والاقتصادي والاجتماعي والأخلاقي للمجتمع وعمل حملة ضد التهرب الضريبي والفساد الإداري والمالي واجب وطني يشارك فيه كل شخص في موقع عملة وهذا بدوره يحسن الأداء الاقتصادي للدولة, واتبع الباحثان المنهج الوصفي من أجل الوصول إلى توضيح الأفكار المطروحة في من خلال الاطلاع على كافة الدراسات السابقة المتعلقة بظاهرة التهرب الضريبي والفساد الإداري والمالي في الأردن, ومن ثم استخلاص النتائج والتوصيات التي تم التوصل لها.
الكلمات المفتاحية: التهرب الضريبي, الفساد الإداري, الفساد المالي, الجهات الرقابية, الأردن.
The tax was known as the main source of financing the state budget and filling its public expenditures in the provision of health and educational services. With the development of the modern concept of tax, it has, besides its financial goal, various economic, political and social goals that the state seeks to achieve through imposing the tax (Olimat, 2012), As a result, the state relies on dealing with tax legislation on a regular basis, which encourages taxpayers to pay their taxes and thus contribute to increasing tax revenue collection and reducing tax evasion. Moreover, tax evasion is an economic crime that has a negative impact on the state’s economy. (banadi and Khuildi, 2020) and also the phenomenon of administrative and financial corruption is a global phenomenon that affects a wide range of countries, and it has dimensions, characteristics and variables that are difficult to distinguish, and differ greatly from one society to another, and was not monopolized by the developing or developed countries of the world, But they differ in percentages, as many studies have shown, that countries in the developed world with a high standard of living have a low rate of corruption compared to countries with a low standard of living, where many forms of corruption spread such as bribery, nepotism, abuse of office for personal gain, money laundering and the complexity of procedures in implementation of transactions, and given the seriousness of both tax evasion and administrative and financial corruption, this study came to determine the extent of the relationship between tax evasion and administrative and financial corruption in Jordan, and the causes and methods of combating it by determining the extent of the link and Jordan’s role in combating this phenomenon through legislation and laws aimed at preventing and limiting its spread, and in order to study this phenomenon, our research paper was divided as follows:
The first topic: the theoretical framework for tax evasion and financial and administrative corruption, its causes and ways to combat it.
Problem of the study:
A problem is represented in knowing the negative effects of the phenomenon of tax evasion and administrative and financial corruption, represented by the widespread waste of national wealth and the loss of real development opportunities. The state also bears costs and material and moral burdens and the emergence of differences in the classes of society, so we must make more efforts to reduce the phenomenon of tax evasion and administrative and financial corruption.
the importance of study:
The importance of the study lies in knowing the necessary ways to address the phenomenon of tax evasion and administrative and financial corruption because of its impact on the economies of countries and the need for all regulatory authorities in the country to join forces to combat this phenomenon because of its negative effects that affect and affect the state’s economy.
- Objectives of the study:
- Shedding light on the phenomenon of tax evasion and administrative and financial corruption by defining its concept, its causes and ways to combat it.
- Shedding light on the phenomenon of tax evasion and administrative and financial corruption, and knowing the penalties for its perpetrators.
- To highlight the effective role of the regulatory authorities in curbing tax evasion and administrative and financial corruption in Jordan.
- Presenting a set of recommendations that would reform government institutions in the country from the phenomenon of tax evasion and administrative and financial corruption inside Jordan.
The researchers relied on the theoretical aspect related to previous books and studies that talked about the causes of tax evasion and administrative and financial corruption and ways to combat it in Jordan, Therefore, the descriptive approach was relied on to draw conclusions and ideas that prove the causes of tax evasion, administrative and financial corruption, and the Jordanian government’s methods of combating it.
There are many previous studies that dealt with the causes of tax evasion and administrative and financial corruption. The researchers will conduct the most important of these studies as follows:
Al-Fayez study (2021) found the independence of the supervisory authorities in the fight against corruption, which allows them to carry out their tasks without interfering with each other, as well as the multiplicity of supervisory authorities and laws specialized in combating corruption, and the lack of seriousness of penalties for some corruption crimes, despite the importance of the violated right. The study of Banadi and Khuildi (2020) concluded that the tax evadant is considered a partner in crimes of administrative corruption, and that both tax evasion and corruption constitute a cause and a consequence of the other. Shakhatra’s study (2020) found that the tax system followed in the Jordanian Income and Sales Tax Department, with its aspects of audit procedures, electronic procedures and tax legislation, all play a prominent role in reducing tax evasion and increasing tax collections. The study of Al-Dalahma and Al-Assafa (2021) concluded that the role of the Jordanian control institutions from the Integrity and Anti-Corruption Commission, the Audit Bureau and the internal control departments in reducing the manifestations of criminal deviation due to administrative corruption was high with an arithmetic average of (3.701) and that their role was high in reducing the crimes of embezzlement, bribery and forgery , While its role in reducing financial, behavioral and organizational deviations resulting from administrative corruption was average. The study of Benouda et al. (2019) showed that tax evasion is a crime that has a negative impact on the state’s economy, and as a result, we must make more efforts to establish fair and comprehensive deterrent legal procedures. Al-Shawabkeh study (2018) indicated that administrative corruption exists in all rich and poor countries, and that there is a rise in corruption indicators in Jordan that has harmed economic development. While Olimat study (2012) concluded that the causes of tax evasion due to legislative, administrative, personal, social and economic reasons played a prominent role in tax evasion, due to first the lack of strictness of the penalties imposed on tax evaders and the lack of clarity of laws and legislations for the auditor and also the presence of the expansion of the scope of personal assessment of the tax The inefficiency of the collection system in the Jordanian Income Tax Department and the inefficiency of employees to do their jobs. Al-Juwan (2015) study found that one of the most important roles of the Public Anti-Corruption Authority is to control crimes of abuse by employees and officials of the powers granted to them. Boudaliah and Jamila (2018) study concluded that there is huge financial and administrative corruption in Algeria, and that it is classified as one of the most corrupt and bribery countries in the world, and the reason is due to the control of men of power and businessmen in the state’s economy. Al-Zoubi et al (2013) concluded that taxpayers resort to tax evasion or evasion, as the inadequacy of deterrent penalties against perpetrators in Articles 55 and 53a. The study (Burak And Alghandouri, 2018) found that the countries of the world were alerted to the dangers of financial and administrative corruption, which prompted them to explore and identify ways to prevent them, and this became through education, training and people development. In the study (Akram and Mughal, 2012), the lack of tax education is one of the most important causes of tax evasion. The study (Desta, 2019) showed that one of the main causes and expressions of corruption is the lack of accountability and transparency among members of society, as well as low wages, lack of job promotion, and promotion based on merit. A study (nadumbaro, 2013) found that the state of Tanzania has very large cases of corruption in state agencies and that the state is making few efforts to combat this phenomenon, which prompted many donor and supportive countries to the state and international organizations to criticize the government for taking this approach in combating corruption.
What distinguishes this study from previous studies?
This study is characterized by the fact that it fully addressed the causes of tax evasion and administrative and financial corruption and the role of regulatory authorities in Jordan in combating this phenomenon, while previous studies dealt with the subject in part, as some of them dealt with the causes of tax evasion and ways to combat them, and some dealt with the causes of financial corruption and some dealt with the causes of administrative corruption And that most of the studies were used to extract their results by relying on the descriptive analytical method, and the survey method, as this study was distinguished by its modernity as it relied on the analytical method in studying all previous studies and analyzing its results and recommendations. This study also dealt with the income and sales tax laws that were updated in 2018 as well as other regulatory authorities, and it is also one of the few studies that dealt with this topic, specifically in Jordan. The descriptive approach is also used to find out the causes of tax evasion and administrative and financial corruption in Jordan and ways to combat it.
The first bump – tax evasion:
First: The concept of tax evasion: It is the taxpayer’s partial or complete avoidance of paying the tax before the due date by using illegal means and exploiting legal loopholes, which affect the tax collection of the state (Bin Aouda et al, 2019).
Khairi (2018) defined it as the failure of the taxpayer to pay his obligations towards the Income Tax Department by using illegal methods and using legal loopholes, which affects tax revenues.
Banadi and Wakhildi (2020) defined it as a set of legal violations committed by the taxpayer in order to avoid performing the tax responsibility of the state by not paying the tax, or not following the model of tax legislation, by exploiting legal loopholes.
Second – Reasons for tax evasion:
The reasons behind the phenomenon of tax evasion can be classified as follows (Kazem, 2021):
- Technical organizational reasons: This is because the tax is collected only when the taxpayer or the facility submits a declaration (Income Tax Statement) The absence of a control system that follows up on taxpayers and companies in the tax calculation process will have a significant impact on state revenues, hence the phenomenon of customs evasion through Concealment of papers or falsification of customs papers for goods of less value than the original.
- Political reasons for evasion: The state’s policy in the process of spending tax proceeds plays an important role in enhancing the confidence of taxpayers and not evading them, by touching taxpayers with the services provided to them by the state about the amount of tax they pay or benefiting them, thus reducing the Tax evasion cases.
- Penal reasons: The deterrent laws imposed by the state on tax evaders contribute to reducing tax evasion, and the taxpayer usually balances the amount he will pay to tax and the penalty for tax evasion.
- The lack of transparency, the absence of clear regulations and restrictions, the failure of the tax department to disclose the rates and figures of tax revenues to be paid, and the inability to conduct awareness-raising research on taxes and tax evasion.
- Administrative reasons: The tasks of the tax administration (the executive authority) are responsible for enacting laws and ensuring that they are implemented correctly. Whenever the tax administration is weak in integrity and efficiency in its decisions, it contributes to the process of tax evasion.
- Ethical reasons: This term refers to the degree of knowledge and cultural ethics among the various groups of society in this phrase. The higher this level, the more people become aware of their responsibilities towards the state in which they live, as well as the extent to which the public interest must be pursued in order to preserve the entity, renaissance and progress of the state. , and even to help provide social welfare and the best possible services to all parts of society all of this is possible only if a person feels obligated to the state and agrees to pay state tax and agrees to pay state tax (Wahba, 2010).
- For legislative reasons: The legal formulation of the procedures and laws that the taxpayer must follow to hand over to the state treasury the amounts due to the tax have the greatest impact on preventing the taxpayer from resorting to tax evasion. , as well as the disparity in the progressive brackets and the exaggeration in the tax rate, urges the taxpayer to evade in order to switch from a high tax bracket to a low tax bracket to reduce his tax (Saadoun, 2016).
- Economic reasons: Tax evasion is affected by economic conditions, as it was found that the rate of tax evasion increases during economic crises and decreases during periods of prosperity and prosperity. Tax evasion negatively affects the state’s economy because it reduces the income available to meet the state’s social, economic and financial needs (Saadoun, 2017).
As for the causes of tax evasion in Jordan, the study of the Jordanian Economic and Social Council (2014) concluded that among these reasons we mention the following:
- Frequent revisions to the texts of tax laws have increased the complexity and volatility of the tax system, which made it more difficult for taxpayers to understand and comply with legal texts related to taxes, which in turn encouraged the taxpayer to evade paying the tax.
- Not tightening the application of the tax evasion penalty, which led to the frequent resort of taxpayers to tax evasion on a regular basis and not frustrating them, when taxpayers balance between the penalty due and the money they will get as a result of their evasion, the evader discovers that the effect of avoidance is greater than the punishment and therefore continues in this process.
- There is a scarcity of statistics and information about the various industries in the country, such as the doctors, engineers and other professionals.
- Weak monitoring and efficiency of the investigation agencies and the lack of interest in tax reforms, which facilitates tax evasion operations.
- The high cost of living as a result of the general level of prices.
- -Weak tax awareness.
- Feeling of unfair taxation.
- Public perception of high tax rates.
Third: Acts that are considered tax evasion:
Article No. (55) of Income Tax Law No. 38 of 2018 came to define the acts that are considered tax evasion. Paragraph (a) of the same article stipulated the following (Income Tax Law, 2018):
- Submitting the tax return based on false records or documents, or including data that contradicts what is established in the records or documents that he had hidden with his knowledge.
- Submitting the tax return on the basis that there are no records or documents, and that it includes data that contradicts the records or documents that he has fixed.
- Intentionally destroying records or documents related to tax before the expiry of the period specified for their retention in accordance with the provisions of this law.
- Fabricating or altering purchase or sale invoices or other documents in order to delude the Department of lack of profits or increase of losses.
- Concealing an activity or part of it that is subject to tax.
Fourth: The penalty for tax evasion:
To reduce tax evasion, some governments use a variety of penalties, including fines and imprisonment. Tax evasion is a felony in some countries, such as the USA and the UK, where a person loses their right to run for key government positions. In Jordan The Jordanian legislator dealt with tax evasion from Article (66) of the Law Amending the Income Tax Law No. (38) for the year 2018, where it considered “the law that tax evasion and in Article (2) that it is the use of fraudulent methods that involve fraud, deception, forgery or concealment of data.” Or submitting fictitious data or participating in any of them intentionally with the aim of not paying the tax or declaring it on our behalf in whole or in part or reducing it according to what is the limit of this law.” Paragraph a) A compensatory fine equivalent to the tax difference for anyone who evaded tax, attempted to evade, helped or incited others to evade tax by committing any of the following acts” (Abu Nassar, 2021):
1- He submitted the tax return based on fake records or documents or included data that contradicts what is established in the records or documents that he hid with his knowledge of that.
2- He submitted the tax return on the basis that there are no records or documents, and within data that contradict his established records or documents that he has hidden.
3- “Deliberately destroys records or documents related to tax before the expiry of the period specified for their retention in accordance with the provisions of this law.”
4- “Change the purchase or sale invoices or other documents to make the department delude the lack of profits or increase the loss
5- He conceals an activity or part of it that is subject to tax.
6- “Withholding the amount of tax in accordance with the provisions of this law and not submitting it to the department within 30 days from the date of its payment.”
7- No original invoice was issued.
Paragraph “b of Article 66 of the Law Amending the Income Tax Law No. (38) of 2018 indicated that in the event of repeated commission of any of the seven specified acts above, the taxpayer shall be imposed, in addition to the financial fine (a compensation fine equal to the tax difference), the following penalties:
1 – “Imprisonment for a period of no less than four months and not more than one year in case of committing any of the crimes for the second time.”
2 – “Imprisonment for a period of not less than one year and not more than two years in case of committing any of the crimes for the third time.”
3- “Imprisonment for a period of no less than two years and not more than three years in case of committing any of the offenses for the fourth and subsequent times.”
The second bump – administrative and financial corruption:
First, the concept of administrative corruption: is the exploitation of a job position to achieve personal gain through illegal means. These are all administrative, functional and organizational violations committed by the public servant while carrying out his official duties within the legislative, legal and regulatory framework in Boudaliah and Jamila(2018)
Al-Ghanimi and Al-Khazraji (2017) defined it as a departure or defect in the performance of administrative responsibilities from its proper form, as a result of the employee’s use of his professional skills to promote a personal or financial interest. It can also be said that administrative corruption precedes financial corruption and is an inevitable consequence of it.
Administrative corruption has also been defined as a harmful bureaucratic behavior aimed at gaining self-interest in an illegal and unjustified manner (Matar, 2015).
Second – The concept of financial corruption: is the use of a public authority or public office for private gain, and it usually occurs when a public official accepts a bribe to facilitate, for example, the contract or conduct of a public tender, or when a public official takes advantage of the position by appointment. Close by the logic of patronage, or by direct theft of state funds. (Al-Ayfa and Razaika, 2018).
Al-Ghanimi and Al-Khazraji (2017) also defined financial corruption as financial deviations and abuses of financial rules and provisions that regulate the conduct of administrative and financial work in the state and its institutions, and the instructions of financial oversight bodies such as the Central Organization for Financial Control, an expert in auditing and supervising government accounts and public and financial bodies and institutions. Bribery, embezzlement, tax evasion, land allocation, nepotism, and nepotism in job nominations are all examples of financial corruption.
Al-Saadi and Mahmoud (2017) defined it as bad and deviant behavior that causes great material losses to citizens and social institutions and has an impact on development and then on the entire state that bears burdens that may be necessary, such as debts, and state policy may deteriorate in the event of the spread of corruption and public money is not control it.
Third – Causes of administrative and financial corruption:
There are many reasons that lead to the occurrence of administrative and financial corruption, including (Ahmed, 2019)
- Legal reasons: These relate to the current state laws and their effectiveness and effectiveness in combating administrative corruption, especially the rules regulating the work of oversight bodies in terms of their powers, immunities and guarantees granted to their members.
- Organizational reasons: They include work methods, systems, and procedures followed by government agencies, as well as the degree of clearly defining roles and the authority of the bureaucracy over these organizations.
- Political reasons: the main political system, the size of the opposition parties, their ability to hold the administration accountable and expel them, and the level of transfer of power between political groups.
- Structural reasons: related to linking the three state authorities (executive, judicial and legislative) and the degree of balance and independence between them.
- Value reasons: related to the prevailing system of religious and social values in society, as well as the degree of respect for them by the citizens of the state.
- Social reasons: These relate to the social system prevailing in society, the nature of the class division in society, the relationship between these classes, and the extent to which each of them monopolize power.
- Economic reasons: related to the economic situation of the state, especially the amount of material income for residents, especially public officials, and the degree of justice in the distribution of income. Others believe that the roots of corruption can be traced back to the state’s historical control over economic and political affairs, which, on the one hand, created opportunities for rent-seeking and rent-earning, while, on the other hand, it weakened citizens’ ability to contain politicians. and responsible for their actions.
Fourth – Anti-corruption axes:
The United States of America has identified eight anti-corruption axes (Boudaliyeh and Jamila, 2018).
- Economic reform.
- Raising the level and culture of society.
- Raising the level of transparency and independence of the judiciary.
- Raising the efficiency of the administrative apparatus and government agencies
- Financial reform with a view to establishing financial regulators with appropriate authority.
- Establishing a special law for international commercial transactions to guarantee the right of each party to it
- Renew and evaluate current legislation to ensure that there is an effective authority to oversee corruption activities within the state’s borders.
Fifth- Strategic Objectives to Combat Corruption in Jordan (United Nations Development Program website, 2021(.
- Raising the level of public awareness and education about the problem of corruption and the procedures for dealing with it. If corruption has a detrimental impact on the country’s economy as well as on the investment climate, all government agencies, the private sector and civil society organizations are responsible for raising the level of public awareness and education about corruption and its negative consequences, and these bodies are also responsible About providing citizens with accurate and timely information about the scope of the problem and the procedures, policies and legislation in place to address it.
2 -Strengthening the prevention of corruption: through the development of efficient and effective legislation, policies and work procedures, efforts to prevent corruption require consolidating the principles of integrity and good governance, activating internal control, developing and implementing rules of functional conduct in public sector institutions, and that private sector institutions and civil society organizations bear responsibilities To avoid corruption, both in practice and in monitoring the commitment of public sector institutions.
3- Strengthening the capacity of the Anti-Corruption Commission: The Anti-Corruption Commission is responsible for spreading public awareness of the phenomenon of corruption, taking the necessary measures to avoid it, investigating corruption cases, and punishing perpetrators. and civil society groups, provided that their working procedures are efficient and transparent.
4 -Involving society in efforts to combat corruption and enhance integrity Corruption has a negative impact on the basic rights of citizens and business activities, and combating it requires the establishment of an effective system to combat it that focuses on activating community participation in efforts to prevent and combat corruption, so that everyone participates in decision-making processes and the development of legislation, including Including individuals, civil society organizations, non-profit organizations and relevant private sector institutions, to ensure societal integrity.
5. The effectiveness of investigations into corruption cases and the punishment of its perpetrators. There are many authorities tasked5.5. investigating corruption charges, and the legislative framework that defines their responsibilities and functions in the fight against corruption is not well understood by all segments of society. As a result, it is necessary to coordinate cooperation, information sharing and coordination of activities between law enforcement agencies, the judiciary and other relevant parties. It is also critical to ensure that staff in these agencies have the essential skills and talents to keep the anti-corruption system running smoothly.
6- Strengthening international cooperation in the fight against corruption: To prevent and combat corruption crimes and their profits, anti-corruption activities need effective and successful international cooperation, and to achieve this, Jordan must continue to participate in regional and international efforts, including cooperation and exchange of information in the field of joint investigations. In corruption and asset recovery cases, the responsibility to investigate corruption offenses requires a clear MLA mechanism. . Develop national legislation that complies with international anti-corruption standards and mandates. To ensure its effectiveness, the Jordanian anti-corruption legislative system is largely in line with international norms. However, several important laws must be reviewed in order to identify loopholes, processes and required revisions, as well as to verify that needs are met. and international standards.
Sixth- Oversight Institutions to Combat Corruption in Jordan (Al-Dalhama and Al-Asasfah, 2021):
- The Audit Bureau: In 1928, the Audit Department was established as a branch of the British Colonial Ministry during the Mandate, and on 16-4 1931 this department was attached to the Prime Minister’s office. And on its expenses, advances and loans under the provisions of Law No. 28 of 1952. The competence of the Audit Bureau has been determined by the bodies entrusted with the supervision of it in accordance with the provisions of Article (4) of the Law of the Audit Bureau to include the following:
- Ministries, government departments, public official institutions and public institutions
- Municipal and village councils and joint services councils
- Any party that the Council of Ministers decides to assign the Audit Bureau to audit its accounts.
2-The Integrity and Anti-Corruption Commission: The Anti-Corruption Commission was established by Law No. 62 of 2006 and started its work on 19/3/2007. His Majesty the King established the Royal Committee in February 2014 to evaluate the work and monitor the implementation of the implementation plan of the National Charter. It was one of the responsibilities of The committee investigates the role of national oversight bodies in this sector and the possibility of concerted efforts to make it more effective and robust. This led to the adoption of a law establishing a new national oversight body known as (the Integrity and Anti-Corruption Commission) to replace the Anti-Corruption Commission and the Board of Grievances, both of which were established in 2008. This legislation was passed, and on June 16, 2016, the new committee began its work, as it was The Authority shall form a board consisting of four members and a chairman who are skilled and knowledgeable to perform their duties freely and without interruption or influence. (Integrity and Anti-Corruption Commission website, 2021):
- Activating the system of behavioral values in public administration and ensuring its integrity
- Ensuring that the public administration provides high quality, transparent and equitable services to citizens.
- Emphasizing the government’s commitment to the concepts of good governance and the rules of fairness, merit, entitlement and equal opportunities.
- Activating and ensuring the integrity of the behavioral values system in the public administration by emphasizing the commitment of the executive authority to openness when setting policies and making decisions, and the citizen’s right to access information in accordance with the law.
- Ensuring that government agencies implement laws in a transparent and equitable manner that supports the concepts of justice, equality and equal opportunities.
- Ensuring the existence of a legislative framework that regulates and holds responsible officials and decision makers in the public administration.
3- Internal control units: refers to the units within the organizational structure of the government unit that work to perform technical, administrative and financial activities in the government unit to ensure compliance with laws and regulations, and whose head is linked to the responsible minister. Assets and Fraud Avoidance, the number of resident control units reached 142 in the first half of 2019, according to the Audit Bureau’s general review of the internal control units of organizations under its jurisdiction, with the exception of municipal councils and joint services councils. The number of government units linked to the budget increased to (54), while the number of independent government units increased to (88). According to Article (8) of the system, the internal control units are responsible for maintaining public funds and assets and ensuring that they are used efficiently. In order to achieve its objectives, the internal control unit undertakes the following tasks:
- Ensure that the current law is followed to the letter in order to minimize errors and detect them when they arise.
- Preventing the seizure of financial resources and assets.
- Review the administrative decisions taken in this regard and exercise administrative and technical supervision to ensure that the government department and unit achieve the general objectives and policies of the department and government unit
- Ensure that the current law is followed to the letter in order to reduce errors and detect them when they arise.
- Adherence to the approved financial policies of government departments and units.
- Exercising administrative and technical oversight and ensuring that the government department and unit achieve the general objectives and policies of the department and government unit by reviewing the administrative decisions issued in this regard.
After reviewing the causes of tax evasion and administrative and financial corruption in Jordan and ways to combat it, we reached a set of conclusions and recommendations that we believe are required, to work on developing them as a means to launch successful efforts to combat tax evasion and administrative and financial corruption in Jordan.
- Taxpayers resort to tax evasion because they have not touched the services that the state must provide them in return for taking the tax.
- The high cost of living as a result of the high general level of prices, which contributed to the increase in tax evasion and administrative and financial corruption.
- The lack of deterrent laws when the taxpayer evaded tax for the first time.
- Tax evasion is the taxpayer’s avoidance of paying the tax partially or completely before the due date by using illegal means and exploiting legal loopholes or fraudulent methods in order not to pay the tax, which affects the tax collection of the state
- The presence of many state institutions interfering in corruption cases, and this thing limits the validity of each of them.
- The phenomenon of tax evasion and administrative and financial corruption is a global phenomenon that Jordan suffers from, like other countries.
- Activating the role of civil society in monitoring and accountability procedures to spread knowledge of corruption risks and how to avoid them.
- Tax evasion and administrative and financial corruption are economic crimes that affect the prestige of the state and mainly affect its economy.
- Corruption reduces investment and the flow of cash from the state at a time when these funds can be used to build economic development initiatives by creating job opportunities.
- Tax evasion and administrative and financial corruption are two sides of the same coin, both of which affect the state’s economy.
- The necessity of spreading intellectual, economic, social and moral awareness of society and campaigning against tax evasion and administrative and financial corruption is a national duty in which every person participates in a currency position, and this in turn improves the economic performance of the state.
- Enact strict legislation and laws to avoid wasting public funds, administrative and financial corruption, and hold officials accountable.
- The necessity of activating the fiscal control mechanisms to control the interference of the administrations, and to combat all forms of tax evasion and corruption.
- The need for rules that prevent the growth of tax evasion and corruption to be highly transparent, as well as strictly enforced.
- Issuing more severe penalties for tax evasion practices and administrative and financial corruption in view of the seriousness of these crimes, which are becoming more and more serious.
- The state’s adoption of financial, economic and social policies and keeping pace with developments in order to increase living capacity, national and purchasing power, fight poverty and achieve sufficiency
- The necessity for the supervisory departments (the Income and Sales Tax Department, the Integrity and Anti-Corruption Commission, the Audit Bureau, and the Oversight Unit) to carry out more studies and research on the causes of tax evasion and administrative and financial corruption and ways to reduce it.
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- Integrity and Anti-Corruption Commission http://www.jiacc.gov.jo
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