The role of the tax Administration in Combating tax Evasion

Abstract

This study highlights the pivotal role played by tax administration in combating tax evasion, as it is the authority responsible for implementing tax legislation and ensuring the collection of the state's public revenues.

The role of tax administration is not limited to the financial aspect alone; it extends to protecting the tax system from various forms of circumvention and evasion that could undermine the principle of tax equity and harm the state's public financial resources.

 The study demonstrates that the effectiveness of tax administration in curbing tax evasion is closely linked to the efficiency of tax identification and audit procedures; tax identification serves as the fundamental pillar upon which tax administration relies to accurately determine the actual tax base and identify taxpayers subject to taxation Tax auditing serves as a vital oversight tool for verifying the accuracy of data and tax returns, detecting deficiencies or violations, and rectifying them in accordance with tax legislation. The study further emphasized that the success of efforts to combat tax evasion requires empowering the tax administration to exercise its legal powers—specifically regarding investigation, information gathering, and the collection of evidence—in an organized and effective manner, thereby ensuring the acquisition of the necessary proof and indications to substantiate [claims]. This role is complemented by the initiation of criminal proceedings for tax evasion a legal deterrent against criminal conduct that achieves both general and specific deterrence. Such action underscores the State’s resolve to combat tax crimes, protect the public treasury, and uphold the principles of legality and tax equity, thereby supporting the State’s financial stability and bolstering confidence in the tax system