The Case of Income Tax Evasion in Jordan

The tax system in Jordan is used to achieve fiscal objectives as well as economic and social objectives. In its attempt of modernization, the Jordanian government has given top priority to reform the tax system to achieve integration in direct and indirect taxes and achieve tax equality. The article provides an insight into the problem of income tax evasion in Jordan by identifying the symptoms of this phenomenon and suggests ways of tackling tax evasion. The Income Tax law and its accompanied regulations are constantly changing and leave room for interpretation. The article argues that combination of carrot and stick policies may motivate taxpayers to comply voluntarily with a more objective and fair system of income taxation.