The Impact of Implementing Vehicle Tax Accounting Instructions on Tax Revenues "A Case Study at the General Commission For Tax"

Abstract

The research aims to demonstrate the impact of implementing the instructions issued by the General Tax Authority in 2022 regarding vehicle tax accounting on collected tax revenues. The researcher adopted an inductive approach by studying a sample of applied cases taken from the General Tax Authority/Mahmoudiya Branch, comparing the tax amount collected for these cases before implementing these instructions in 2021 and after their implementation in 2022. The researcher noted whether there was a difference in the tax amount collected in both cases, which would be reflected in tax revenues. The researcher reached a set of recommendations, including that implementing vehicle tax accounting in accordance with the instructions issued by the General Authority had a negative impact on tax revenues, as these instructions did not reflect the actual income of the taxpayer's source of income. Consequently, the taxpayer paid a tax amount less than the tax amount collected before implementing these instructions, leading to a decrease in the tax amount collected from the taxpayer and, consequently, a decrease in tax revenues. The researcher recommended a set of recommendations, including taking into account the tax law in vehicle tax accounting by estimating the taxpayer's income based on the taxpayer's realized income, taking into account the deductions specified by the law and calculating the tax. According to the applicable tax rates, the actual tax amount should be determined to maintain real tax revenues and prevent a decrease. It is necessary to find the most appropriate alternative to these instructions to ensure accurate estimation of taxpayers' vehicle income, while providing simplified procedures.