The Phenomenon of Tax Evasion: Its Legal Dimensions and Legislative Frameworks

Tax evasion is one of the significant issues facing countries worldwide, including both developed and developing nations such as Iraq. To combat this phenomenon, most countries strive to review and amend their tax laws and regulations to ensure the collection of financial revenues necessary to fund public expenditures. The research problem arises from the fact that tax evasion reduces tax revenue, thereby depriving the state of important financial resources through the exploitation of legal and legislative loopholes by taxpayers. The aim of this research is to study the phenomenon of tax evasion, analyze the legal and legislative provisions, and evaluate their effectiveness in mitigating tax evasion. The research adopts a descriptive analytical approach based on available information, statistics, and data related to tax evasion. The study concludes that instances of tax evasion in Iraq have increased, especially after 2003, due to economic, political, and security conditions, as well as the weak qualifications of some employees of the General Tax Authority and frequent amendments to tax laws, which have created a state of legal instability. The study recommends enhancing transparency in the tax system by providing all necessary information to taxpayers, improving tax quality, raising public awareness, and considering the automation of tax processes and linking tax institutions with state agencies and the private sector.