ANALYSIS OF THE CAUSES AND EFFECTS OF THE PHENOMENON OF TAX EVASION AND METHODS OF TREATMENT IN THE IRAQI TAX SYSTEM

Abstract

From what had earlier been mentioned, we may conclude that it is not an easy task to combat evasion for its variety of shapes and techniques practiced by those tax-payers who use their fraudulent means to achieve it. Through what had been concluded, and to handle evasion, The reason which cause it should be known, that may be resulted from the miserable economic situation and the in flexibility to tax laws and the high tax prices Pressures, in addition to an inappropriate awkwardly time of collecting those taxes. The tax payer may feel that paying the tax is futile when there is no general utilities flow in society or the existence of in justice in paying taxes when influential and powerful people use differ ent ways to make we of evasion. At that time the burden of financing the government budget will go to earnings and incomes of other parties. The disturbed shape of taxation give chances to tax-payers avoids paying taxes. Suitable steps adopted by government financial management may reduce the rates of evasion directly or indirectly, and such steps will consolidate trust among citizens. Especially those tax-payers and the government to build social solidarity or using modern technical means to control and monitor tax-payers or imposing severe punishments on those who practice cheating in taxation. All this will reduce evasion and achieves social justice through directing incomes from the rich people to the poor and then narrowing the gap between them to provide best services to society from the returns obtained from taxes.