THE ROLE OF TAX AUDITING IN ENHANCING THE EFFECTIVENESS OF THE SELF-ASSESSMENT METHOD AND ITS IMPACT ON REDUCING TAX EVASION (AN EXPLORATORY STUDY OF THE OPINIONS OF A SAMPLE OF EMPLOYEES OF THE LARGE TAXPAYERS DIRECTORATE, ITS TAXPAYERS, AND CERTIFIED PU

Abstract

This study aims to clarify the role of tax auditing in the self-assessment method and its impact on reducing tax evasion. This main objective is achieved through several sub-objectives, including identifying the concept and importance of the self-assessment method, explaining the mechanism for its application in the city of Erbil, and presenting the legal framework governing its implementation. The study also analyzes the relationship and measures the effect of tax auditing conducted by the General Commission for Taxes on the self-assessment method, and clarifies the role of the existing determinants of the self-assessment method in calculating taxable income in terms of application procedures in Erbil.

The research problem lies in the lack of clarity regarding the extent to which tax auditing is capable of enhancing the effectiveness of the self-assessment method in tax assessment and reducing tax evasion within an organizational and institutional environment facing several challenges related to the legal framework, the level of tax awareness, and the adopted accounting systems and There is a statistically significant relationship and effect between the application of the self-assessment method and the reduction of tax evasion ,and what extent does the application of the self-assessment method have a statistically significant effect in reducing tax evasion.

In its theoretical aspect, the study relied on the inductive approach to collect relevant scientific information, while the descriptive–analytical approach was adopted in the field study through distributing a questionnaire to a purposive sample of (368) respondents, consisting of employees of the Large Taxpayers Directorate and its affiliated taxpayers (economic units), as well as certified public accountants holding a legal accounting qualification in the city of Erbil. The data were analyzed using the Statistical Package for the Social Sciences (SPSS).

The study reached several results, most notably that tax auditing contributes to achieving tax justice, as the practice of tax auditing on economic units for the purpose of verifying the tax amount places all units in an equal position before tax law. Under the self-assessment method, mutual trust is established between the tax administration on the one hand and taxpayers and auditors on the other. Moreover, it reduces bargaining and administrative corruption by minimizing direct contact between taxpayers and tax administration employees. The existence of strict and well-organized tax auditing increases the level of taxpayer compliance and limits attempts to circumvent the tax system, ultimately leading to a reduction in tax evasion and an enhancement of public revenues.

The study recommends developing the skills of tax auditors through specialized training programs in financial data analysis and tax evasion risks, and adopting electronic auditing tools that contribute to accelerating examination and verification processes. It also recommends adopting the self-assessment method more widely, while providing a supportive regulatory environment that includes clear legislation and simplified procedures for submitting electronic tax returns.