Tax Sanctions And its Effectiveness in Overcoming with income tax evasion in Palestine

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.