The Commitment of the Palestinian Tax Investigator with International Standards of Auditing in Income Tax Estimation and it's Impact on the Process of Tax Evasion

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Type: 
Thesis
Year: 
2010
Students: 
Rula Abed Al-Raziq Abedallah Hussein
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The Commitment of the Palestinian Tax Investigator with International Standards of Auditing in Income Tax Estimation and it's Impact on the Process of Tax Evasion 2.63 MB
Abstract: 
This study has sought to understand the concept of tax evasion as well as its forms, causes, size, and its effects on the society, in addition to the concept of income tax and income theory. In the second chapter, the researcher examined the nature of tax inspection, its purposes and standards. The chapter also dwelt on the areas of similarity between the Palestinian Income Tax Law and the Palestinian Auditing Practitioner Law, on one hand, and the international auditing standards, on the other hand. Furthermore, the study has sought to find out the extent of the Palestinian tax inspector’s compliance with the international auditing standards, and the effect of that compliance on uncovering and preventing of tax evasion cases. The study also examined the role of several variables, such as profession, training courses in taxation and auditing, academic qualification, years of experience and the major in undergraduate study, towards this compliance. The literature review presented a dearth of studies that have tackled the effect of tax inspector’s compliance with the international auditing standards on the uncovering or preventing of tax evasion. To this end, the researcher raised the following major question: Does compliance with international Auditing standards guarantee the uncovering and preventing of tax evasion? Towards answering the above mentioned question, a questionnaire was designed and distributed to a sample of 150 subjects who represent 50 tax inspectors, 50 auditors, and 50 financial managers. The questionnaire was first submitted to a number of specialists in the field, who approved its validity to the purpose of the study with a coefficient value of 0.91. Data analysis indicated that factors such as suitable academic qualification, professional experience, and sufficient training had a positive influence on the extent of the tax inspector’s compliance with the international auditing standards. In the light of the study findings, the following recommendations have been reached: 1.Encouraging the adherence to the international auditing standards for the purpose of tax inspection, in addition to the related requirements of local tax law. 2.The necessity of strengthening the cooperation and data exchange among external auditors, tax administration and inspectors, and other interested parties for the purpose of providing the tax authority with valid trustworthy reliable information about the financial positions and earnings of taxpayers. 3.The need to build up bridges of confidence between the tax authority and taxpayers, and motivate the later mentioned to submit voluntary reliable financial statements and tax declaration.