The Role of Tax Audit in Reducing the Phenomenon of Tax Evasion and its Reflection on Tax Revenues

An applied study in the General Authority for Taxation

Abstract

The purpose of this research is to explain the reality of tax auditing in reducing the phenomenon of tax evasion, by highlighting the most important reasons and factors that help in tax evasion.This research was carried out on a sample of companies operating in Iraq, which is an applied research based on the data of the General Authority for Taxation of these companies. The study concluded that the reasons for evasion of taxes are due to lack of tax awareness and lack of trust between taxpayers and the tax department, Thus enhancing the risk of tax evasion.The study recommended that:
1. Increase confidence between the tax department and taxpayers, and as a result, reduce tax evasion.
2. The necessity of this research lies in the development of a strategy for the tax system and the provision of a kind of equality between taxpayers and the tax department, which increases revenues, and gives credibility to the relationship between taxpayers and the income tax authority.