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The case of income tax evasion in Jordan: symptoms and solutions

Bashar H. Malkawi (Department of Accounting (Accounting and Commercial Law Program), Faculty of Economics and Administrative Sciences, Hashemite University, Zarqa, Jordan)
Haitham A. Haloush (Department of Accounting (Accounting and Commercial Law Program), Faculty of Economics and Administrative Sciences, Hashemite University, Zarqa, Jordan)

Journal of Financial Crime

ISSN: 1359-0790

Article publication date: 18 July 2008

Abstract

Purpose

The purpose of this paper is to examine income tax evasion in Jordan and set forth various cures for this problem.

Design/methodology/approach

The paper investigates the phenomenon of income tax evasion. In doing so, the paper reviews reports from academics and statistics from the Income Tax Department. The paper begins with an overview of the Income Tax Law, distinguishes between tax evasion and tax avoidance and provides empirical data on the size of income tax evasion in Jordan. A study of article 42 of the Income Tax Law, the anti‐tax evasion provision, is made. In the final analysis, the paper suggests several means that can be used to address income tax evasion.

Findings

The paper concludes that, in so far as the Jordanian Government is concerned with the issue of income tax evasion, several legal and non‐legal techniques can be experimented.

Originality/value

In reacting to huge non‐compliance by Jordanians, the paper tells the story of how to create an income tax compliance culture. The government can utilize various practices, techniques, and discourses to create such a culture.

Keywords

Citation

Malkawi, B.H. and Haloush, H.A. (2008), "The case of income tax evasion in Jordan: symptoms and solutions", Journal of Financial Crime, Vol. 15 No. 3, pp. 282-294. https://doi.org/10.1108/13590790810882874

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited