Tax Collection Obstacles in Palestine From The Tax Officers Perspective

This study tackles the obstacles of tax collection at the tax department in Palestine as perceived by the tax employees. This study aims at addressing the obstacles facing tax collection at the tax department in Palestine and identify the main procedures to collect the tax debt Particularly the administrative and legal procedures. Further, to identify types, causes and impact of tax evasion in addition to means of curbing it in addition to tax penalties that ensures collecting the tax debt. In order to address the main obstacles facing tax collection the researcher used the descriptive method to conduct this study. The researcher prepared aquestionnaire to identify the obstacles of tax collection from the perspective of the tax employees of the questionnaire targeted a sample of employees at the income tax and value added tax departments the total targeted segment is 160 employees while the sample addressed 120 employees which concludes 75% of the total segment. Afterward, the data was analyzed via the SPSS through several statistical processes, including arithmetic averages, standard deviations, one way Anova, Cronbach’s Alpha, T-test, and Post Hock Test. No statistical differences have been found in the obstacles of tax collection according to (assessment methods, tax evasion and tax sanctions). From tax employee’s perspective the obstacles were ascribed to; i) the variable of the academic qualification; ii) job title; iii) years of experience; iv) specialization. Nevertheless, statistical differences have been defined in the obstacles of tax collection according to the methods of collection from staff’s perspective who ascribed the obstacles to the years of experience. The main conclusions for the study are as follows: 1- Lack of commitment in filing periodical disclosures and paying tax dues by taxpayers and lack of information relevant to taxpayers in the tax slip and also lack of awareness about the tax laws. 2- The long course of time to transfer bounced checks to the legal system and the lengthy execution of a judicial order. The backlog at tax courts in Palestine in addition to the lack of precedence in this field. 3- Lack of control over forging clearance tax slips and the lack of enforcing laws that would deter tax evasion neither undisclosed source of income or the improper fines for the amount that is not paid for tax. 4- The inefficiency of collection and weakness in applying the penalty of travel prevention and detention. The study puts forward several recommendations, foremost of which: 1- Tax declarations, periodical disclosures and tax assessments should be regularly followed up by tax departments through activating the internal audit function in branch offices. Further, the tax assessment collection should be followed up by the staff of the tax departments. 2- Law of Domanial Money Collection should be activated and enforced. The tax department should be mandated to apply this Law, without resorting to the Judiciary, as the case in Jordan, to facilitate tax collection and to increase the tax revenues. 3- Palestinian tax courts’ role should be activated through consulting tax specialist to settle the suspending tax cases; moreover, settled cases should be communicated to all branch tax departments. 4- Tax evasion phenomenon in Palestine should be fought by all ways and means while Tax sanctions stipulated by the provisions of law should be activated to ensure the settlement of the tax debts.