The Reality of the Internal Control System Which Works in the Department of Value Added Tax(VAT) and its Impact on the (VAT) Earning

The research aims at assessing the proper usage of the interior controlling system used in many AVT departmentsand its efficiency and the efficiency of its procedures toward building the most correct way to administerand manage interior control systems in AVT departments. The research also expands on the general topic of interior controlling systems: its importance, usage and revenue in AVT department. Previous studies and papers were reviewed to determine the theoretical frame for this research.In order to get best results, the descriptive analytical approach was used to achieve the goals of this paper, as well as, a questioner was distributed for the purpose of gathering statistic among the public. Even though 80 questioner's papers have been distributed, 55 of them were completely answered. A number of personal interviews have also been made. The research results first revealed that every employee has a certain degree of proficiency upon doing their tasks. Essentially this means that there is always a room to improve employees' proficiency in any possible way. To increase their motivation level, promotions, rewards and raises are used. But, the research also reveals a contradicting fact; promotions don’t motivate and encourage employees to gain more efficiency. This leads to believe that this is clear evidence for the lack of sincerity and transparency when evaluating employees. Moreover, the study assures there are no more future plans that are facing the expected risks which the AVT departments may expose to be negatively affecting the tax revenues. Finally, the research shows both by the dishonesty and the lack of questioner answered, that the employees are not evaluated properly in a professional way thus reflecting poorly on the performance of the work force. The research results have helped to get in to a number of conclusions and therefor recommendations. These are the recommended points of action to improve the AVT internal controlling system: 1- Include future plans that hold the possibility of exposing the department to any kind of risk and find a suitable solution while having the least expected losses count. 2-Re-Evaluate the performance of the employees in a professional way and on an individual level on which looks to each employee's tasks and achievements separately. 3- Re-enforce the concept of bonuses, rewards and promotions within the evaluation of the employees in the purpose of increasing the staff performance, while assuring the principal of manners, transparency and honesty.