Taxation Disputes

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أثر اقتصاد الظل على الإيرادات الضريبية في فلسطين ما بين الأعوام 2000-2020
(جامعة النجاح الوطنية, 0223-02-16) إسراء سميح محمد أبو السباع
هدفت هذه الدراسة إلى الوقوف على الأسباب التي تؤدي إلى تنامي ظاهرة اقتصاد الظل، وتقدير حجمه ما بين سنة (2000-2021)، وأثره على الإيرادات الضريبية في فلسطين، اعتمدت الدراسة على المنهج الوصفي التحليلي، وذلك بجمع البيانات الاقتصادية والأبحاث والدراسات السابقة والاعتماد عليها في صياغة الإطار النظري للبحث، أمّا فيما يخص الجانب التحليلي للبحث فقد اختارت الباحثة المنهج الكمي لتحليل البيانات السنوية للمتغيرات وذلك باستخدام نموذج المؤشرات المتعددة والاسباب المتعددة MIMIC Model (Multiple Indicators and Multiple Causes ) ، وتم تقدير حجم اقتصاد الظل بوساطة حساب نصيب الفرد من الناتج المحلي و العجز في الموازنة، الإنفاق العام، الإعانات الحكومية و معدل البطالة)، وتوصلت الدراسة إلى أنّ حجم اقتصاد الظل في فلسطين ما بين الأعوام (2000-2021) كان (44.45%) من الناتج المحلي الإجمالي، وأنّ هناك أثر سلبي لنشاطات اقتصاد الظل على الإيرادات الضريبية التي تحصلّها الدولة، وقد أوصت الدراسة بتنظيم أنشطة اقتصاد الظل الشرعية وإدخالها إلى الاقتصاد الرسمي وذلك عن طريق توفير إطار قانوني لها يجعلها تساهم بشكل إيجابي في الناتج المحلي الإجمالي والدخل القومي، وزيادة المشاريع الاستثمارية في فلسطين والتي تؤدي إلى زيادة فرص العمل وتخفيض البطالة مما يؤثر بشكل إيجابي على خفض حجم اقتصاد الظل في فلسطين، وخفض معدلات الضرائب على السلع الاستهلاكية والأساسية وذلك من أجل خفض أسعارها، مما يؤدي إلى زيادة قدرة الأفراد على تلبية حاجاتهم الأساسية، وانخفاض توجههم إلى أنشطة اقتصاد الظل. الكلمات المفتاحية: اقتصاد الظل، الإيرادات الضريبية، الضرائب المباشرة، الضرائب غير المباشرة.
Control Systems And internal Control theory and Application in Joint Stock Companies In Palestine
(2002) Nael Alqubj; Nasr Abdel Karim
This study has been conducted to explore the extent of awareness & application of internal control (IC ) in Palestinian corporations. since it is considered an important element in administrative and financial systems . To accomplish that, the literature of auditing was reviewed. For this purpose two questionnaires was designed to collect data , The Sample: out of 40 public corporate registered in the country . 27 of them (67.5%) responded, out of the 52 privet corporate suitable for the sample .32 of them (61.5%) responded. Also External auditors sector has been included in this sample study , out of 110 External Auditors practicing in the West Bank , 30 of them ( 27.27% ) responded . By using appropriate statistical method (weighted average SPSS) , the major findings were as follows: - Low awareness& applications of Internal Control - Lack of independence of internal auditors. - Adverse relationship between capital concentration & Internal Control. - Significant lack of quality experience among the External Auditors. Recommendations: 1. The necessity of internal lows & controls to assure segregation of duties and clear lines of responsibilities. 2. The necessity of special qualifications, experience & independence of Internal auditors. 3. The necessity of certain and clear legislation's in order to help in developing the profession. 4. The necessity to develop external auditors abilities through extensive annual training.
The Direct Tax Management in Palestine From the Year 1994 until the end of the Year 2000
(2003) Jamal Abu-Younes; Prof. Dr. Ahmad Mobarak Al-Khaledi
This study aims at clarifying the general frame of constructing tax management, which is specialized and able to verify aims of tax policy. Clarifying the theoretical distances to tax systems, and how they are established in order to benefit from it. In addition clarifying the possibility to verify tax just for all the responsible. Knowing the best scientifically managing ways, which help to improve the level of tax management users. The study is divided into three chapters, what follows is the abstract: - The first chapter aims at, identifying Palestinian tax system, its aims, tax just philosophy, the effect of political, social and economical system on tax management, and the lawful base for taxes in Palestine. In addition to the importance of tax management in Palestine, its different fields its lawful. Second chapter aims at knowing the management system at income tax in Ramallah-General Management, how it works, its authorities, its duties and rights. And also discussed situation of the responsible in front of tax management, their rights, their duties, their lawful cases which is constructed between them and tax management. The third chapter aims at studying the social and behavior side of head and employees at tax, delays of tax management in Palestine, and general frames to make tax management up-to-date. Results of the study say that: - Tax system differs from one country to the other, according to the political, social and economical system, and according to economical and social development in that country. It is important to have strong and sufficient lawful base for taxes in order to ........ aims, which are an important part from economical policies in the country. The lawful of taxes at the time of preparing this study didn’t come from a Palestinian law. But it comes from peace process especially, economical Oslo agreement. So tax laws remain to be military in its base, and economical in its shape. Taxes at time of Israeli occupation were a means of punishment from military courts. The way in which tax management works has part of the scientifically bases of management in other countries, it is getting better from time to time. Reasons, which make the responsible, pay taxes. This makes the problem of escaping from taxes getting wider in addition to problems at tax management. Since the study shows that the existence of managing characters which are strong enough is important to get rid of these problems. There are managing and systematical retards in the face of tax management in Palestine. Tax management didn’t t improve well according to technology. From above results, the researcher got the following recommendations: - Tax management should take prior right in mending process to become more just. Constructing new national law from legislative council, in order to get rid from negative effects of applying law no. (25) 1964, and modifications which occur according to military orders, establishing courts which are specialized in taxes. Laws should be applied equally. Once who don t pay should be treated strictly and should be punished. Efforts should be done to improve management system in Palestinian National Authority. Simplifying ways of work, and improving work environment which affects and is affected management system. Tax management had to benefit from modern management technology -computers.
Reasons For Troubled Loans And Its Impact On The Banks And Taxes
(2003) Borhan Husni Hasan Omar; Dr. Hisham Jaber
Banking sector in all countries faces the problem of troubled loans , Palestinian banking sector suffers from this problem due to the current situation , credit facilities dropped by the end of June,2002 by 23.7% of that of the end of 2000, .Provisions for doubtful debts increased by 40% . This study aims at examine the reasons for troubled loans and its impact on the banks and taxes . Several hypothesis have been developed . A questionnaire was designed for data gathering. A pilot study was conducted then the questionnaire was distributed to a sample of officials of banks branches of West Bank , 38 respondents out of 46 returned the questionnaire i.e. about 90% of the sample, data were analyzed using SPSS. Descriptive statistics was used to analyze the data. It was found that both the banks and clients were responsible for troubled loans , granting loans on a personal basis bad management bad financial management were main reasons for troubled loans . More than 76% of the sample did not use Z- score for forecasting failure in credits . This was due to the lack of knowledge of this measure. It was found that credit is granted on the basis of clients character, collateral , follow up was one of the main means of collection troubled loans. It was found that there is a relationship between troubled loans and taxes . Tax department used uncollected interest as part of taxable income. This led to the increase in taxes paid by banks. Recommendations were drawn from the results of which are training of banks staff documentation follow up of credit facilities , establishment of collection departments , emphasize more internal and external control on banks , establishing a special section in the courts for banking disputes through experienced judges and attorneys to facilitate the follow up of troubled loans, as for the tax department it is recommended that unsolved interests on troubled loans in banks to be dealt with within the taxable income on a cash basis rather than on accrual basis.
The Degree of Equality of the Tax Exemption and Ratios in the Value Added Tax System Applied In Palestine
(2003) Osama Mustafa Musa Sabri; Dr. Hisham Jabr
This is a study about the Value Added Tax (VAT), tax of rates and exemptions. The study started by determining the statement of the problem, goals and methodology of the research. A comprehensive review of literature of the tax laws, revenues, exemptions, deductions given to tax payers, and tax rates in many countries of the world were reviewed. Several books, journals, and reports in West bank and Jordanian universities and institutions' libraries were consulted. Moreover, Central bank reports and publications and internet sites were investigated. A review of any indirect taxes, fees and exemptions, deductions which are in force were analyzed. Taxpayer's duties were examined. Revenue rates of direct as well as indirect taxes to total revenue, and total revenues from taxes were compared. Besides, VAT to total revenues was carried. VAT law applied in Palestine was examined to know the tax burdens, deductions, and exemptions, for the purpose of comparison with other countries in these areas. These countries include Europe, Africa, Asia and America. The ratio of direct tax to total revenues, and direct tax burden were found to be the lowest among countries under study.While, indirect taxes ratio to total revenues in Palestine was the highest among these countries. These results indicated that the Palestinian tax system is distorted. In order to answer questions raised in this study, a field work study was conducted through the design of the questionnaire; distributed to a sample of 400 subjects, including businessmen, tax employees, and auditors. A pilot study was conducted, and the questionnaire was amended accordingly. 199 valid retained questionnaires were analyzed using SPSS. And the results were shown in the study. The study consisted of eight chapters. The first was an introductory in nature, while, the second examined the tax types. Chapter three and four were devoted to Tax Laws and revenues in several countries of the world. Comparison between tax revenues, rates, and tax burden in many countries were found in chapter five. Chapter six compared the tax rates and exemptions in Palestine with those in other countries. While, chapter seven presents the results of the field work study. Chapter eight presents the conclusions and recommendations of the study.
The Objectivity of the Tax Assessor Arbitrary Decision in Palestine
(2003) Ahmed Ibrahim Ahmed Faleh; Atef Alawneh
This dissertation aims at studying the concept of objectivity of the arbitrary decision in tax assessment. The study shows the effects of the decisions on the tax assessment process in Palestine, its effects on the stability of tax cases and the speed with which such cases are finalized. The dissertation also shows the effects of the related parties on the objectivity of the arbitrary decision and the effects of such objectivity on safe guarding the treasury, on the degree of commitment of the taxpayer and his/her ability to fulfill his/her dues with great ease and on the tax management. Furthermore, the objectivity of the decision will help establish the basis for good practice to lay plans and policies that are needed for better performance to achieve the desired objectives. Such achievement will lead to increased trust between the taxpayers and the tax management, which will in turn lead to better levels of tax knowledge and commitment by the taxpayers. To achieve the above-mentioned goals, the author of this dissertation uses analytical methods that rely on the theoretical literature and the available empirical works. The literature review helps in building the theoretical framework for this dissertation. Moreover, the author's practical experience was also utilized to help make this research helpful in tax practice. The Dissertation consists of four chapters and a conclusion. Chapter one presents the problem of the dissertation, its objectives, importance, methodology and determinants. Chapter two presents assessment in income tax and the historical development of taxation in Palestine, the methods of assessment (direct and indirect) that appear in the tax laws. It also presents the effect of tax disclosure and the tax literacy of the taxpayer on the process of making tax decisions and the nature, methods and reasons that lead to making arbitrary decisions. The third chapter analyzes arbitrary assessment decisions considering the tax assessors qualifications and the basis on which the tax decision needs to rely on to achieve the objectives of the assessment process and those of the tax management. The objectives are to produce methodology and processes to make objective, strong and complete decisions that are hard to appeal in any of the stages of the assessment process. The chapter also discusses the ability and attitude of the tax assessor in dealing with the taxpayers and the related parties within the powers that are invested in him by the laws and regulations. Finally, the chapter studies the effects of the arbitrary decisions and the their failure on the assessment process in light of the rights and obligations that the laws offer to both the tax payer and the tax management like appealing and rejecting such decisions: The fourth chapter takes on the effects of objectivity and its elements on arbitrary assessments from the perspective of the definition of objectivity, its elements, its effects and its importance in the process of making tax assessment decisions. The chapter also analyzes the supporting documents, the problems and obstacles the face the assessment process in the arbitrary method and the effect of' the lack of objectivity on arbitrary assessment. At the end the author recommends a process that leads to a decision that is more objective and has positive effects on all parties in the taxation process. These recommendations are thought to yield decisions that are balanced, more objective satisfy the taxpayers and deal with the drawbacks of the current system, increase the tax literacy and commitment, increase the trust between the tax department and its customers and finally safeguard the treasury.
Collection of Income Tax Law No.25 of 1964 Applicable In Palestine
(2003) ahmed Zeyad Addobok;
1. Introductory: this research contains four parts in addition chapter of introductory: The introductory part of this research discusses the rule improvement of tax objectives that affects the development of society in the state, The law of Income tax, & principles that are rule Application of Tax law to achieve tax sovereignty. The First part discusses Tax debt in judicial fact in that which Doctrine and Accountable tax cases for what are they coming of tax debt. Then to statute the tax obligation and the Method of extinction of tax obligation The second part discusses the methods of tax collection in: Competence administration, then tax pay in source &directly pay, and adopt pay & installment pay. The third part discusses the lawful protection for administration that actress for royalty (right) of treasury and tax payer. The last chapter discusses the seizure and conservatory seizure in Law of princely collection. 2. conclusion: in this research I had arrived into many observation and suggestions, the important of these: The first, to achieve justness and equality bases that need institution of tax capitalism & no periodic profits on tax obligation. The second, to award tax council to eyesight assessing (taxing) and collection. The third to take at Territoriality, Nationality, and Citizen or Denizen Principles to achieve tax sovereignty. The fourth, the many faction (leeches, engineers, lawyers, auditor accounts, children parterres, and estates owners) their jobs are needed to reckon on Cash Base that suitable account for his income. The fifthly, to band between spilled doubts and chancy doubts, the spilled doubts that considerate expenses without chancy doubts but to will be accepted chancy benefits for sedentary bank, that constructing on reasons that mine fore past mention in research. The sixthly, to confess independent wife that has competent of tax free from her husband. The seventh to obligate payer to give the self-assessing and considerate that obligation is organ, then to take of administrative assessing in limited cases and constructed on Available information to achieve taxing on judicial fact. The eighth obligates payer to give report tax without be connected existence on existence of yielding income. The ninth, to repose taking for judgment of Check and Letter of Guarantees that suitable legal facilities of tax collection as I reach for it. The tenth, to take for exempting obligation on impossible cases for collected tax as I reached for it. The eleventh, take for prescription of taxing obligation of assessing and collection for reasons that I reached for it. The finally, to came respective, suitable and clear adjudge of collection for Distress and Conservatory seizure.
Income Tax Evasion In Palestine
(2003) Salah Muhammad Tawfiq; Atef Alawneh
This study focuses on the methods followed to elude paying income tax in the West Bank, and it highlights the causes and excuses for not paying income tax as well as the negative effects of not paying it. This study also provides suggestions to prevent this phenomenon in the West Bank, In addition, it may help the Tax Department to come up with a proposal of Palestinian tax law. The methodology the researcher followed up involved a survey of a random sample of seventy-six respondents from the income Tax Department staff and other respondents. A questionnaire was designed for this purpose and the SPSS program analyzed the data. It turned out that there is a range of factors that make people elude Income Tax payment, These factors are economical, managerial, legislative and psychological. The most effective factors stem from the lack of economic stability, lack of coordination between the governmental institutions and the Income Tax Departments, the inequality of applying the Income Tax Laws on tax payers and the lack of tax payers awareness of negative effects of not paying this income tax. This study recommends the following: 1. The need for the implementation of Palestinian Income Tax Law and the strict application of this law. 2. The necessity of direct coordination between the different governmental departments and the Income Tax Departments. 3. The need for tax inspection activation and improving the community's awareness of paying income tax. 4. The importance of tax information network.
Taxation Justice in Palestine National Income Bill
(2003) Abdul-Rahman Qassim Ibrahim;
This research aims at achieving and spreading tax values among tax payers and discussing tax equivalence which Palestinians aims at achieving through applying new laws and studying it's a facts on the spiritual settlement among them it also raises up the trust-level between tax payers and The country. The researcher reviewed the related literature, which helped him in setting the theoretical framework of the research, which hopefully will come out into being in the future. The research consists of the following: The introduction which dealt with the historical development of the concept of taxation, the importance of the income tax in the modern monetary systems and the historical background of the income tax in Palestine. Chapter one dealt with the standards of the taxation justice, the concept of taxation justice, the taxation generality — both financial and personal, the tax character represented by due exemption to the minimum level of living, the income load , reduction on family burden and finally the difference in the tax average according to the income source , applying the ascending tax system , the taxation duality and the escape from paying taxes . Chapter two dealt with the limitations on the taxation justice in the Palestinian bill of the national income. The revenues covered by taxes, productive expenses, tax exemptions, tax averages and their harmony with the taxation justice represent this. Chapter three dealt with the tools of realizing the taxation justice. These are represented by taxation law, tax administration, auditing, judgment and procedures to insure justice for the tax payer and the administration as well. Recommendations and aspirations in the field of tax legislation and the fairness of the clauses of the Palestinian tax Bill concluded the research. The research recommends the following to bridge the gaps in the Palestinian tax Bill: 1. Entering more legal texts characterized by clarity and flexibility to ensure correct application which leads to the treasuries getting its due sums on time. The taxation justice would be realized through the aid of experienced workers in this field and involving the private sector and university teachers. 2. Imposing taxes on all sources of income in principle and exempting some as an exception as the legislator sees it convenient. This agrees with the principles of the taxation philology. The bill of law mentioned these in general and as a result many income resources have been exempted from taxes. 3. Adopting the principle of advance payments which meets the suitability, aware of the fact that the settled bases in taxation says that the tax is generated through the generation of the revenue itself. The estimation is only an explorer not a founder. 4. Establishing a resume court of law because all staff is specialized in the taxation field. It also hastens setting all tax issues instead of the court of law suggested by the bill of law, as it deals with civil issues as well. 5. Ratifying the estimation decisions and accepting the annual report by the manager or his delegate. Decisions should not be compulsory before Passing them. This ensures the correct and safe application of these decisions. 6. Limiting the expenses as allowed generally and specifically to generate income. Precise and obvious terminology should be introduced to avoid any misunderstanding or disagreement in applying the legal texts. The absolute and the conditioned deductions should not be distinguished but they should be reworded in one item in the suggested bill of law. 7. Setting a deadline for setting all issues between the estimator and the official representing the minister. This comforts the taxpayer, saves time and expenses. 8. Including the agricultural income in the tax process. This includes the watered agriculture, the green houses, livestock, poultry and bees. The cultivated area and the capital used should be specified. Total exemption from taxation would be a bias in favor of the agricultural income. 9. Forcing all those accountable to submit a tax statement within the legal period by book keeping excluding the employees who have no other source except their jobs.
Tax Offenses and Specialized Court in Accordance Withthe Rules of Jordanian Income Tax Law
(2004) Mohammed Hussein Qasem Hussein; Dr. Mohammed Sharaqa
Tax offenses, in all countries of the world, are considered a problem and an obstacle which preclude governments from performing their roles to provide welfare and basic services to their own citizens. Taxes have an important role given their significant impact on pumping the state coffers/ treasury with the necessary funds to cover expenditures. Taxes, in addition to other resources, are always considered major resources for the public treasury. The government treasury in Palestine suffers from a chronic shortage of funds due to a number of reasons. One reason is the rampancy of tax offenses owing to the abnormal conditions prevailing in the region. Second, the Israeli occupation measures, in the form of economic blockades, closures and curfews, have led to the suffocation of all Palestinian economic sectors. Third, the tax laws, effective in the Palestinian Territories, have a number of gaps or shortcomings which compel the tax payer to evade paying tax dues. One of these shortcomings is the enforcement of Jordanian Income Tax Law #25 of 1964 and other laws such as Jordanian Penalty Law #16 of 1960. This study came against these backgrounds. The study first began with a definition of what constitutes a tax offense in terms of elements, aspects and causes. It also examined the differences between tax offenses and other offenses or crimes stipulated in the Jordanian Penalty Law #16 of 1960. In this context, the study illustrated its rules, interpretation of articles and the hows of their implementation. Further, the study showed position of specialized tax courts in connection with the tax offenses among ranks of litigation, and the procedures followed in litigation and the approved penalties. To these ends, the researcher collected the necessary data. He also wrote to the courts and other concerned authorities. In addition, he conducted interviews and developed a questionnaire. The questionnaire covered a number of areas: personal data about income tax employees in terms of sex, academic qualification and years of experience. The questionnaire consisted also of 25 items which revolved around causes of tax offenses, and factors leading to them. The questionnaire also focused on Palestinian tax courts in terms of whether they are specialized or otherwise. The questionnaire of the study was based on previous studies in the field. The researcher also received assistance/ feedback from other experts and statisticians. The questionnaire was then administered to the sample of the study. The subjects (71) were income tax department employees in the West Bank major towns: Nablus, Qalqilya, Jenin, Tulkarm, Salfit, Ramallah, el-Ram, Hebron, Southern Hebron, Jericho, Bethlehem, and Abu Dees. It was taken into consideration the number of employees in each income tax department. The researcher used SPSS in the analysis of the study findings. He also used the following statistical processes: arithmetic averages, standard deviations, percentages and frequencies. Findings It was found that economic conditions play a significant and effective role in the increase of tax offenses/ evasion and so do social, moral and political factors. Also penalties and tax laws enforced play a role in increasing or decreasing tax offenses. It was also found that the Palestinian tax regime is in need for development/ modification. In the light of these findings, the researcher came up with the following recommendations: - Toughening the penalty against tax evaders - Introducing modern tax laws. - Developing the tax courts’ apparatus. - Training income tax department employees. - Training tax court employees on a regular basis. - Enhancing external and internal control in the tax departments.
The Legal System of the Palestinian Tax Management
(2004) Hisham Radi Hashim Tayeh; Dr. Mohammed Sharaqa
This study aims to know the legal system of the tax management, and its practical applications. And to know if this management and its facilities are consistent with this legal system, and how lawful are its actions under the principle of legality which means that managerial work is supervised by court. The researcher has reviewed the laws and publications related to the topic, he also depended on his experience in the tax domain as he is an employee in the Palestinian tax administration. In addition this study aims to connect between the components of the tax system : legislation, tax management and taxpayers. This study contains two chapters each chapter has many sections, chapter one is a general outlook at the tax systems, their goals and characteristics. It also talks about the managerial activity in the management authority, its functions and facilities. Furthermore, this study shows how consistent are these activities with the principle of legality. Chapter two talks about managerial applications in the Palestinian tax departments, and shows that tax laws have determined taxpayers' rights, and those the tax management and the necessity of its implementation. Next, this study talks about the practicality of implementing the tax law, its estimations and objection stages to the end of the tax process, by compulsion, agreement, or conciliation. Results of this research show that tax legislation, management and taxpayers are the pivots of the legal tax system and they should be consistent and stable with each other. Empirical evidence shows that this relation is compulsory and hostile, and that the strongest party (the tax management) is the most active one and the one that gets its rights by legal force finally. The tax legislation is unsuitable and hard on Palestinian taxpayers. The results also show that the national tax management is responsible for establishing a modern tax system that is consistent with the privacy of the Palestinian taxpayers and also consistent with the recent economic and political challenges.
False Transactions in the light of Tax Laws Currently Applied in Palestine
(2004) Ahmed Izat Lutfi Elshareef; Dr. Ahmed Elkhaldi
The term 'false transactions' appeared as a way of tax evasion with the appearance of proportional taxation (which means that the higher the income the higher the tax percentage due on it.) As a result, some taxpayers resorted to fragmenting their income falsely by transferring ownership of part of their income resources to others fictitiously. In order to combat this form of tax evasion, the tax legislator set the rule that the tax assessor can reject a transaction if it seems false and assess on these grounds. The legislator then put lawful indications to indicate the falsehood of some common transactions in order to lift the burden of proving its falsehood off the assessor's shoulders. The concept of false transactions in tax law has a strong connection with the concept of formalism in civil law and other laws, where 'formalism' is defined as an agreement between two parties in a legal contract to hide their real purpose under a deceitful pretense to realist a certain aim undisclosed to others. It requires the unity of contractors and subject in both contracts as well as the unity of declaration time, and that one of the contracts is declared while the other is concealed with the agreement of both parties. There are two types of formalism: absolute formalism which means that the declared contract does not really exist. The other is relative formalism which means that there is a legal connection between the contractors but the formalism conceals part of it such as concealing the contract type, the identity of the other contractor or one of the conditions. As for the status of formalism, it is not, in itself, considered a reason for voiding the contract. If both parties concealed a real contract with a fictitious declared one, the operative contract would be the real one. However, the party that claims formalism should present proof of their claims. As for the other party (those who were not part of the contract or a general successor for one of the contractors,) the status of formalism to them is that they can hold on to the fictitious contract or choose to hold on to the concealed contract and prove it with all possible means. Despite the similarity between the concepts of false transactions in tax law and formalism in civil law, there are substantial differences. The main one is that the tax authority does not need to resort to the legal system to establish formalism but can do that by itself. This raises the question about the legal basis for the theory of false transactions. To answer this question we need to go back to the distinctive characteristic of tax law which springs from the importance of tax for the state since it is considered the blood that feeds its veins. Therefore, this distinctiveness has developed on the basis of the necessity of continuous tax flow to the state without interruption. It is manifested in the principles of taxation law which specifies tax debt very clearly, takes into account reality rather than formality and gives the tax establishment special rights and privileges to insure the determination of tax debt and its collection. This distinctiveness gives tax debt priority over other debts and influences the interpretation of tax legislative texts so that they can only be interpreted within the frame of taxation principles and according to the special meaning implied by taxation law. This distinctive characteristic is the basis for the theory of 'false transactions in taxation law,' although it is important to emphasis that the scope of applying this theory is limited and is restricted to matters regarding tax assessment. The conditions necessary to apply the rule of false transactions are that: 1. there is a legal transaction between two parties. 2. the transaction is issued on behalf of the taxpayer. 3. the transaction aims to reduce tax. 4. the assessment officer believes that this transaction is false and did not actually take place. Types of false transactions: the tax legislation provided specific forms of common false transaction which are considered legal proof of its falsehood. Some appear in our current tax legislation while others appear in the comparative legislation. Some of these forms are: ownership transfer for the benefit of the offspring, ownership transfer that can be retracted, ownership transfer for the purpose of blocking or stopping tax collection, fictitious partnerships between parents and offspring or between spouses, the transaction of the apparent taxpayer who actually works for another, transactions that differ from common market dealings, transactions between residents and non-residents and the salary of a partner employee or director. Each of these transactions has conditions for applications which were considered in detail. False transactions in taxation law differ from formalism in other laws in many regulations. Some of these are: not requiring good will on the part of the taxation authority which means not knowing about the concealed contract, giving advantage to the state that holds on to the concealed contract over the other party who holds on to the declared contract when dealing with the taxpayer's money, not requiring the tax authority to prosecute for formalism and making the burden of contradicting the charge of a false transaction fall on the taxpayer. The relation between a false transaction and tax crimes: the false transaction contains the same components as forgery, fraudulent bankruptcy and debtor's fraud which are: altering facts, actual or possible damage and premeditation or willfulness. In addition, a false transaction targets state money for which the law gives severer penalties. Therefore, the taxation law should criminalize false transactions; the income tax law number 25 for the year 1964 stated the criminality of two forms of false transactions while the other forms could be included under the clause 'trickery, deception or man oeuvre' that appear elsewhere. For the false transaction to be considered a tax crime, it needs to have the two basic elements of crime: The material element which is the external appearance of the crime; although tax crimes are considered danger crimes which do not require the realization of outcome as the action itself is considered sufficient. The moral element is the criminal intention; the false transaction crime requires a specific intention which is that the culprit's actions aim to dispose of all or part of tax. The taxation legislation give the tax assessor considerable authorities in order to verify the existence of a case generating tax and deciding the amount of tax debt required, such as the authority to disclaim any transaction if convinced of its falsehood without having to prove that falsehood. In addition, the legal evidence for the falsehood of transactions listed by taxation legislation obliges the tax assessor to reject the transaction and form the assessment on this basis. To prevent the tax assessor from abusing this authority, the taxation legislator imposed legal supervision by granting the taxpayer the right to appeal against any injustice if the objection to the tax assessor is turned down. The court responsible for dealing with appeals is the income tax cases Appeals Court and it has complete authority to assess the information given by the taxpayer without complying with the tax assessor's assessment. The law has granted income tax lawsuits urgency quality and limited the right to appeal to the taxpayer or the legal representative. The appeal case is examined privately, and if the Appeals Court is convinced with the information that proves the seriousness of the transaction, it can rule to reduce the assessment or cancel it if it was against the law or return the case to the tax assessor with instructions on which to assess. There is another form of legal supervision represented by the Cessation Court which is a law court rather than a proceedings court. Its role is limited to the verification of the validity of applying both the assessment decision and the decision of the Appeals Court for the principles and law without dealing with the information. Both the taxpayer and the tax assessor have the right of cassation against the ruling of Appeals Court.
Tax Sanctions And its Effectiveness in Overcoming with income tax evasion in Palestine
(2004) Ehab Khader Ahmad Mansour; Dr. Mohamed Sharaqa
This study deals with the phenomenon of income tax evasion in the Palestinian economy. It concentrates on the forms of income-tax evasion, their reasons and the role of the penalties legally enforced in resolving the problem. This study also stresses the impotence of income taxes to any economy and explains the effects of the none – payment of income taxes. It then present solutions to the problem, hoping that they will help policy makers in comparing the problem. The study depends on the relevant literature in formulating the theoretical framework. A questionnaire was designed to collect primary data on the issue of income tax evasion. The questionnaire contained 26 questions related to the issue and was distributed to a representative sample of the study population which is comprised of tax officials, accountants, and income tax payers. The data was analyzed using the SPSS statistical package. In addition, some interviews were conducted with officials of the tax departments.
Impact of Tax and Economic Laws on Disclosure in Shareholding Companies
(2004) Khalid Hasan Sudqi Hasan Al-Ji'an; Dr. Mohammed Adel Al Sharaka
This study examined a number of economic laws effective in Palestine, namely Income Tax Law 13 of 1947, Income Tax Law 25 of 1964, Palestinian Income Tax Draft Law, which has passed second reading, Investment Promotion Law 1 of 1998, Company Law 12 of 1964. More specifically, this study sought to shed light on these laws, approved to reinforce disclosure, declaration and publication, and identify their shortcomings. The motivation for this study is to contribute to the provision of legal tests which bind the Palestinian public shareholdings to prepare, and publish reports and financial statements which can be hinged up reliably by all users including the tax authority. To these ends, the researcher in chapter one studied company reports and financial statements in terms of their uses, objectives and nature of information. Further, the researcher dwelt on both financial and accounting disclosure in terms of definition, nature, elements, methods and techniques. The researcher also examined tax in terms of definition types, goals and characteristics. He specially tackled the notion of taxable income, according to theories of source and enrichment and according to income tax laws effective in Palestine and Palestinian income tax draft law which passed its second reading. The researcher also looked at expenses allowed to be deducted from tax in line with tax laws effective in Palestine and the terms in these laws which allow recognition of these expenses. IN chapter two, the researcher examined data which must be disclosed according to several laws including tax information which must be disclosed for income tax purposes according to Income Tax Law 13 of 1947 and Income Tax Law 25 of 1964 and Palestinian Income Tax Draft Law in terms of date and techniques of tax estimation on the basis of these data. Accurate accounts and records must be also be supplied. The researcher looked at missing data in these legislation pertinent to disclosure and publication of data. The researcher also examined Investment Promotion Law and its impact on disclosure instruments. He specifically identified areas of weakness and strength of the law particularly concerning incentives and disclosure mechanisms.In addition, the researcher studied the company law in terms of its effective in Palestine.
The Judicial Impugn in Income Tax Disputes in Palestine
(2004) Raja Ahmad Mohammad Khwailed; Dr.Mohammad Sharakah
Because of the importance of judicial impugn in taxes disputes among other tax issues, it represent a guarantee for appellant and because it suffered a lot during the occupation period it became as anew subject in the Palestinian taxes system because of the lack of experience in judicial impugn at different levels, weather by judicial system, taxes system or appetent or lawyers Add to that a group of legal principles in tax subjects that been accepted by court decisions which contributes in putting these principles. Because the court of appeal in tax cases was inactive during occupation, the judicial impugn in tax disputes did not perform its role. For that reason a lot of impugn sentences are still mysterious and not clear for different parties, they need a lot of study and investigation to reveal that confusion. Judges, lawyers, appellants and tax departments cooperated to narrow the gap resulted from setting aside judicial impugn to enable them to cope with the developments that took place in income tax disputes. The Palestinian lawyer still face many obstacles in dealing tax courts, these difficulties differ from one appellant to another. Because the Palestinian authority was the dream for many. It is still hard for many people to sue this authority in front of courts, for some, the reason for not impugning is the lack of trust in judicial system, they feel that the system will not be fair in dealing with tax system. There are other reasons for not impugn in courts concerning income tax disputes. I talked about that in details to achieve that following goals: - To show the importance of judicial impugn in income tax disputes and to state its goals. - To help the Palestinian legislator in determining the suitable court that will deal with such disputes. - To identify the procedures of judicial impugn in income tax disputes. - to concentrate on the legal principles that were approved by the Jordanian courts concerning judicial impugn which will act as a lighthouse in guiding the Palestinian judge and legislator. - To identify the problems and difficulties that face the judicial impugn procedures to enable the responsible departments to deal with such cases. - To enrich the research and to achieve the scientific and practical goals, the researcher reviewed come of the references in which he depended on legal laws especially the Jordanian tax law number 25 far 1964 and court judgments. The researcher dealt with the subject as follows Introduction: in which the importance of taxes was clarified, then, the importance of judicial impugn in income tax disputes, which is considered as a guarantee for appellant. Introductory chapter, the researcher talked about the development of judicial impugn in Jordan, Egypt and Palestine since the issue of the first tax income law in these countries. First chapter: it talks about the importance of judicial impugn, the objective and procedures of impugn, in the second part, the characteristics of judicial impugn and the specialized court and law were clarified. Chapter tow talked about judicial applications in tax disputes First, it talked about court of appeal in income tax cases. It talked about the structure, authority and decision of these courts and the appealable decisions, the second part talked about the most important problems that face judicial impugn in taxes disputes such as un uniformity of legislations, weakness of judicial system. lac of Palestinian income tax law. And other obstacles. After talking about the previous subjects, the researcher reached some results and recommendations that he hope to help the Palestinian judge and legislator and lawyer. Recommendations: 1. Unify the legislations concerning taxes in west bank and Gaza 2. Pass the Palestinian tax law that cope with the developments and take into consideration the judgments related to judicial impugn. - Make the administrative impugn one phase. I.e. the committee can make decisions. - Give the authority to court of appeal to deal with judicial impugn in tax disputes. - The decision of the minister or the judge can be reviewed for impugn by the specialized court. 3. Cancel all the Israeli military orders and replace it with Palestinian laws that suite the Palestinian situation. 4. Eliminate the occupation heritage and make the impugn decision objective as possible. 5. Activate the judicial system and emphasize it independence in dealing with all the cases. 6. Activate the tax judicial impugn in tax disputes through passing specialized laws that regulates the judicial authority and provide the needed guarantees to apply law. 7. Provide the needed number of judges to suite the number of cases in courts. 8. prepare Specialized judges to deal with tax disputes through training and rehabilitation to qualify there with the needed experience to deal with tax issues. 9. Create different kinds of courts to deal with the big number of cases. 10. Raise the awareness concerning taxes among Palestinian lowers and build up trust among the tax administration. 11. Provide a number of legal specialized people to working tax departments. 12. Rehabilitate the tax personnel through training that aim to introduce the legal issues and explain tax law. 13. Equip the tax departments with what they need to carry out the work. 14. Create an information unit in tax system that deals with judicial impugn. 15. The tax administration must holds workshops and seminars to explain tax law and income tax law and to clarify the role of lawyers and personnel. 16. Rehabilitate lawyers in the field of taxes through training courses.
Property Tax in the West Bank; Under The Auspices of law No. 11; year 1954; and Laws Adjusting To It
(2004) Mu’ayad Ibrahim Isma’il Hamdan; Dr. Tareq El-Hajj
This study aims at recognizing the extent of the property tax in the west Bank to realizes its main objectives (the financial; the social; as well as the economic objective) under the property tax law. No 11, year 1954 and the laws adjusting to it. The sample of the study consists of the employees at the departments of the property tax in the west Bank due to their direct involvement with the subject of study. Pertaining to that, a questionnaire has been designed for the purpose of gathering statements already prepared specifically for that. Seventy – one questionnaires have been distributed the sample has formed 74.7% from. The employees of the property tax departments in addition the researcher had collected the necessary data from secondary sources; such as, books, references, registers; as well as the facts already abstained from the property tax departments in the west Bank. The researcher has tested five hypotheses to check if there is significant differences of the ability of the property tax in the west Bank to achieve its Main objectives. Factors considered are job; or salary; or scientific qualification; or socialites.
Income Taxcats Definition in Palestine and its Economic Effects
(2004) Osama Mohammad Hamed Moghrabi; Dr. Tariq Al-Haj
Because of the importance of judicial impugn in taxes disputes among other tax issues, it represent a guarantee for appellant and because it suffered a lot during the occupation period it became as anew subject in the Palestinian taxes system because of the lack of experience in judicial impugn at different levels, weather by judicial system, taxes system or appetent or lawyers Add to that a group of legal principles in tax subjects that been accepted by court decisions which contributes in putting these principles. Because the court of appeal in tax cases was inactive during occupation, the judicial impugn in tax disputes did not perform its role. For that reason a lot of impugn sentences are still mysterious and not clear for different parties, they need a lot of study and investigation to reveal that confusion. Judges, lawyers, appellants and tax departments cooperated to narrow the gap resulted from setting aside judicial impugn to enable them to cope with the developments that took place in income tax disputes. The Palestinian lawyer still face many obstacles in dealing tax courts, these difficulties differ from one appellant to another. Because the Palestinian authority was the dream for many. It is still hard for many people to sue this authority in front of courts, for some, the reason for not impugning is the lack of trust in judicial system, they feel that the system will not be fair in dealing with tax system. There are other reasons for not impugn in courts concerning income tax disputes. I talked about that in details to achieve that following goals: - To show the importance of judicial impugn in income tax disputes and to state its goals. - To help the Palestinian legislator in determining the suitable court that will deal with such disputes. - To identify the procedures of judicial impugn in income tax disputes. - to concentrate on the legal principles that were approved by the Jordanian courts concerning judicial impugn which will act as a lighthouse in guiding the Palestinian judge and legislator. - To identify the problems and difficulties that face the judicial impugn procedures to enable the responsible departments to deal with such cases. - To enrich the research and to achieve the scientific and practical goals, the researcher reviewed come of the references in which he depended on legal laws especially the Jordanian tax law number 25 for 1964 and court judgments. The researcher dealt with the subject as follows Introduction: in which the importance of taxes was clarified, then, the importance of judicial impugn in income tax disputes, which is considered as a guarantee for appellant. Introductory chapter, the researcher talked about the development of judicial impugn in Jordan, Egypt and Palestine since the issue of the first tax income law in these countries. First chapter: it talks about the importance of judicial impugn, the objective and procedures of impugn, in the second part, the characteristics of judicial impugn and the specialized court and law were clarified. Chapter tow talked about judicial applications in tax disputes First, it talked about court of appeal in income tax cases. It talked about the structure, authority and decision of these courts and the appealable decisions, the second part talked about the most important problems that face judicial impugn in taxes disputes such as un uniformity of legislations, weakness of judicial system. Lac of Palestinian income tax law. And other obstacles. After talking about the previous subjects, the researcher reached some results and recommendations that he hope to help the Palestinian judge and legislator and lawyer. Recommendations: 1. Unify the legislations concerning taxes in west bank and Gaza. 2. Pass the Palestinian tax law that cope with the developments and take into consideration the judgments related to judicial impugn. - Make the administrative impugn one phase. I.e. the committee can make decisions. - Give the authority to court of appeal to deal with judicial impugn in tax disputes. - The decision of the minister or the judge can be reviewed for impugn by the specialized court. 3. Cancel all the Israeli military orders and replace it with Palestinian Lowes that suite the Palestinian situation. 4. Eliminate the occupation heritage and make the impugn decision objective as possible. 5. Activate the judicial system and emphasize it independence in dealing with all the cases. 6. Activate the tax judicial impugn in tax disputes through passing specialized laws that regulates the judicial authority and provide the needed guarantees to apply law. 7. Provide the needed number of judges to suite the number of cases in courts. 8. prepare Specialized judges to deal with tax disputes through training and rehabilitation to qualify there with the needed experience to deal with tax issues. 9. Create different kinds of courts to deal with the big number of cases. 10. Raise the awareness concerning taxes among Palestinian lowers and build up trust among the tax administration. 11. Provide a number of legal specialized people to working tax departments. 12. Rehabilitate the tax personnel through training that aim to introduce the legal issues and explain tax law. 13. Equip the tax departments with what they need to carry out the work. 14. Create an information unit in tax system that deals with judicial impugn. 15. The tax administration must holds workshops and seminars to explain tax law and income tax law and to clarify the role of lawyers and personnel. 16. Rehabilitate lawyers in the field of taxes through training courses.
Tax Planning In companies Listed In The Palestine Securities Exchange (Comparative Study)
(2004) Mahfouz (Mohammed Ali) Mahfouz Khwayreh; Dr.Hisham Jabr
This study is concerned with the extent of the use of tax planning and its various elements, by companies listed in the Palestine securities exchange for the reduction of their tax burden by legal means through the following forms: 1. Tax planning, by the companies listed in the Palestine securities exchange, through utilization of the advantages by the law for income tax. 2. Tax planning, by the companies listed in the Palestine securities exchange, through utilization of the advantages by the law for encouragement of investment. 3. Tax planning, by the companies listed in the Palestine securities exchange, through implementing financial administrative, and accountancy procedures. The study is also concerned with the measurement of the relationship between these companies and their tax planning through its various elements, in addition to the measurement of variation between averages of use of tax planning among the three preceding parts, and comparing them, with concentration on law for income tax no. (25) of the year1964, and the law for encouragement of investment. (1) of the year 1988. For achieving this objective, the researcher designed questionnaire consisting of (34) items, and distributed it on the sample of study, which included (26) companies listed in Palestine securities exchange, (12) auditing offices and (10) tax officers. The researcher arrived at the following conclusions: 1. The study sample showed noticeable agreement and conviction that companies try to utilize the general advantages offered by the law income tax, with the mean score (3.82). Also, a strong relationship was shown between the extend and commitment of the listed company to the general advantages offered by the law of income tax on one side, and the reduction of tax burden on the other. 2. The subjects of the sample tend to agree on that companies utilize, to a certain degree, the advantage .by the law for the encouragement of investment, the mean of the score was (3.55). 3. The subjects of the sample tend to agree on that the company has concern in, and implement, financial, administrative, and accountancy procedures, the mean of the score is (3.76),hence the tax burden is reduced for the companies that are committed to and implement financial ,administrative and accountancy procedures, in accordance with the law in force . The study also arrived at many recommendations which are of great use to the companies listed in the financial market in particular, and the joint stock companies in general, regarding the reduction tax burden by legal means.
Taxes on Profits of Free Occupations in Palestine
(2004) Ayman Rashid Sadek Hammad; Dr. Mohammad Sharaqa
This study has aimed at studying the legislative texts in tax laws applied in Palestine belonging to free crafts acts for standing on weakness and power points in them, and giving the required recommendations to adjust them just as the study has aimed at acquainting with some economic indexes about the crafts and professions in Palestine and acquainting with the size of the tax deduction of these professions. Of the other targets which this study has aimed at is studying the reasons of volunteering obligation abatement by free craftsmen and studying the factors that limit this abatement. The researcher has reviewed the morals related to the subject and limited the theoretical frame for the study and analyzed the size of the tax incomes in Palestine in general and the tax incomes indicators of the free professions in particular. And he has taken into account the escape of tax rate on some crafts. The researcher has made a field survey on tax departments in the West Bank to get knowledge for mechanization of examining and relating the taxes on the free crafts, and he also made a field survey for a spontaneous specimen that represents more than 200 taxpayer of the free crafts to acquaint with the reasons of non- volunteering commitment by paying the taxes and acquaint with the factors that help this obligate in Palestine through a questionnaire that has been designed for this purpose, the researcher has used a statistical program SPSS in analyzing the data and finding the percentages and account averages. The theoretical study results showed there was abatement in taxation exemptions and reductions on the free crafts acts compared with the other countries, and it also showed a shortage in taxation texts that oblige the others in deducting the free crafts taxation from the origin. And an increase in taxation escape from the free sector was greatly shown to the researcher, and that may reach in some sectors to more than 90%. But the field study showed a clear shortage from the decisions makers in the ministry of finance and taxes departments in moving towards increasing the incomes which are collected locally in general and increasing the incomes from the free crafts in particular, and it also shows non- presence of coordination among taxes departments with each others to be informed about the taxpayers entrance and among the tax department and other organizations from another side. And it has noticed that the bad economic circumstances that the Palestinian people pass through, and the untrust in administrating the public funds is of the highest reasons of non-volunteering commitment and of the other reasons which the taxpayer referred to are the increase of tax rate on income, the hardship of calculating the income, the littleness of accounting consciousness, the littleness of family and personal exemptions, the ambiguity of taxation principles for taxpayers, misapprehension in the followed procedures in estimating and collecting taxes. The questionnaires also indicated that applying taxation punishments, improving the economic situation, reducing tax rate and crediting the taxation acknowledgment principle are all considered factors help on the volunteering commitment. And on the light of these results, the researcher has recommended a number of recommendations of which the most important is the necessity of haste in determine the tax laws and involving them personal. Fairly and economic exemptions at a higher rate than what is being followed in the current law situation for achieving the taxation justice for the taxpayer and treasury equally. And as he has also recommended the necessity of coordination and cooperation among the taxation administrations with each other from one side, and among them and the organizations, ministries and syndicates in the other side. The researcher has also recommended an increase in the field research by the taxation a departments employees for improving taxation collection. He has also recommended the necessity of the taxation discount which may be collected through the
The Impact of Income Tax on Financing The Listed Corporation in Palestinian Security Exchange
(2004) Abderrahman Oqla Ali Salfiti; Dr. Hisham Jabr
This thesis examines the effect of income taxes on corporations financing - a case study on corporations being listed at the Palestinian securities exchange market located in Nablus. The study consists of five chapters as the following: The first chapter is the introduction, the statement of the problem, importance and objectives for the study. This is in addition to describing the conduct and the limitations of the study. The second chapter deals with taxes; varieties, characteristics, the taxing system as well as focusing on income tax and elaborating on the income before taxes, taxes rebate and the expenses that are being excluded from the income statement. The third chapter discusses corporations; the characteristics and the formulation, the equity capital that consists of common stock, preferred, paid in capital and retained earnings in addition to analyzing the cost of capital for corporations. This is in addition to investigating the sources of financing for their corporations, short term, medium term and long term financing. The fourth chapter introduces the Palestinian securities exchange market and the listed corporation in this market as well as discussing the exchange itself in regards to the establishment, objectives, the structure, membership, and the listed corporation with their financial statements. The fifth chapter concludes that corporations can be divided into two parts: - First: Debt corporations that depend solely in financing their assets on debt depending on the interest expenses being deducted from the operating income for tax purposes. - Second: No-debt corporations that depend exclusively in financing their asset on equity except for seasonal needs and emergencies. The study concludes the following: 1. Corporations has to verify and investigate the optimum financial structure that is characterized by profitability, flexibility and control to fulfill debt obligations as they come due. 2. Constitutions are to be legislated to encourage investment in corporations. 3. Governmental regulations have to be of those that encourage savings and investment. 4. Corporation have to determine the optimal capital structure that minimizes cost. 5. Seasonal needs have to be financed on short term basis and thus utilizing the privilege of deducting interest expenses for tax purposes. 6 .Improving the Palestinian securities exchange market. 7. Renovating the policies of corporate income taxes to respond to the contemporary needs of social and economic development.

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