The relationship between The Taxass System and Socio - Political System in Palestine

The study aims at identifying the relationship between the taxation system, and social and political systems. The importance of the taxation system is in its ability and successes in achieving social fair. So each country tries to achieve its system social and economic objects through choosing taxes to from its taxation. Despite the fact that the taxation is the practical equivalence of its policy, the difference in taxation system between the difference countries does not mean the difference of the tax policy of these countries because One taxation system can work in more than one taxation system. One anther words, the taxation system which works in achieving some goals in on community might be not valid in anther community because Of the difference between these communities. For example, Palestine face many difficulties as a result of the Israeli occupation and the Palestinian economy follows the Israeli One, and because of that, Palestine is affected greatly by the political factors, and so the taxation system of any independent country should be different of from the Palestinian. The Palestinian taxation system should grow and develop so as to deal with the realty. For the purpose of the study, the researcher resorts to the studies of the taxation systems and the general finance in order to use in his research. Further more, he resort to the general budgets that the researcher reached through the Internet. This study contains three Chapters, in the first one the researcher talks about an introduction to the taxation system. Also, this chapter includes four section. The first one deals with identification of the taxes, basic rules and goals, the historical development of taxation system in Palestine, the role of taxation system in achieving social objects and the general payments and the distribution of the income. In chapter two, political and economic effect are included. Also this chapter is divided into four sections, they include the effect of political rules on the taxation system and the economical effects of the taxation system. In chapter three, the researcher talks about the taxation policy during the Palestinian National Authority require. This chapter is divided into three sections. The first one includes the taxation policy and the components of the Palestinian taxation of P.N.A. The second sections includes the economical agreements between the P.N.A. and Israel. Moreover, it includes the evaluation of these agreements and its right and commitments. The third section includes the financial work of the P.N.A. through the general budges, the gap between the incomes and the effect of Al-Aqsa Intefada. The study concludes several results, the most important is that there is no perfect and integrated taxation system but there are principles and criteria could be guided with such as justice, Validity and the ability to be applied. The political situation affects the greatly financial situation. For example, Israel has frozen the Tax money of P.N.A. in (2000) as a result of Al- Aqsa Intefada to practice pressure on the P.N.A. The procedure has affected the general budgets of the P.N.A. in 2001, 2002 and 2003. The tax income reached (91) Million dollars per month, this income has been decreased to (18) Million dollars in addition to the decrement of the external trade due to the Israeli Siege. This procedure forced the P.N.A. to borrow in order to encounter the payments and salaries. The general debit reached (1237) Million dollar in (2002) with an additional increase (6.35) than in (2001) to reach (1257) million dollars in (2002). This increase has made a heavy load which affected the budget and the development future. The general debit before the Intefada was (572) million dollars only. The tax policy is connected with payments policy which consists more than (81%) of the total payments. The salaries still consist more than 23 of these payments, mean wile in (2003), the tax income has decreased to less than (44) million dollars per month instead of (80) million dollars in (2002). This decrease of the Palestinian taxation of the Palestinian economy due to the Israeli procedures. The researcher recommends that the Palestinian taxation system should be flexible through its technical basic rules and has the ability to be applied during the political circumstances of Palestine.