Tax Evasion in the medical Profession in Palestine

This study aimed to identify the accounting system of medical careers in Palestine, the study of the legal texts of the laws relevant to the medical profession and its relation to tax collection, and to identify the nature and forms of tax evasion to the medical occupations in Palestine. Also, what are the underlying causes of tax evasion to related to medical careers, and what should be done as aproposals for the mechanism of addressing tax evasion in medical occupations in Palestine. To achieve that study objectives, the descriptive and analytical approach was used through the deep literature review, and then a questionnaire was developed to be the main study tool, and then the study tool was verified and validated. The study tool consisted of 24 paragraphs divided into 3 key areas distributed on the study sample that was randomly selected. The sample size consisted 177 physicians who has private clinics. Also 161 members from the employees in the offices of income tax and VAT were selected. Data were collected and processed through the statistical package for social science SPSS. The results of the study have shown that the reasons for tax evasion refers to several things, including the absence of a sound accounting system and to the nature of the tax laws, in addition to exemptions and incentives granted to the medical occupations, and the extent of suitability of the tax rate for the medical occupations which is differs from other commercial ones. Also, among the main reasons is the lack of the implementation of tax sanctions is a fair and consistent manner. The economic and political instability is also be in regarded as one of the reasons of tax evasion, in addition to the extent of insistence and implementation of an effective control system managed by the accountant and the tax evaluator . According to the study results, it is recommend that there is a need for keeping regular and sound accounting records by the medical occupations that will reduce the extant of tax evasion by appropriate and accepted documentation level, reviewing the tax laws, and taking into consideration the economic and political conditions when imposing a tax to convince the owners of the medical occupations that the tax is imposed fair manner according to the law apart from his status or position. Also it's necessary to review the object of granting encouraging incentives for the medical occupations, and applying the tax sanctions for non-payers. In addition, the necessity of making awareness courses or workshops for the medical occupations to beware of the sanctions set forth in the tax laws, and to simplify the tax procedures, and tightening the control system to be effective. Those will be targeted to, the accountants, and the tax evaluators in more efficient ways to be a co-factor to reduce the tax evasion in cooperation with public institutions