Khaberni - Dr. Husam Abu Ali, Director General of the Income and Sales Tax Department, said that the tax reforms that have been adopted are based on a fundamental principle that emphasizes not imposing new taxes or increasing any taxes, and achieving tax justice, which is in line with the vision for economic modernization.
Abu Ali, Khaberni during a panel discussion hosted by the Jordanian Association for Science and Culture in the presence of the engineer Samir Habashneh, head of the association, and managed by the engineer Abdul-Fattah Darradkah, emphasized that not imposing or increasing taxes in recent years is a clear evidence of the effectiveness of the tax reforms introduced by the government into the tax system in the Kingdom.
He explained that the Income and Sales Tax Department, through adopting a package of tax reform projects, has achieved tax justice Khaberni and transformed into a digital department by providing tax services electronically, and linking electronically with related departments and bodies, using electronic auditing through artificial intelligence, and employing electronic digital control on factories, and adopting electronic invoicing through the national electronic billing system.
Abu Ali pointed out that a technical program has been completed for applying digital monitoring on cigarette production factories, Khaberni and the project consists of applying a system and electronic monitoring procedures for management and operation within the production sites (cigarette factories), through using an integrated supervision software for authenticating the cigarette production process, from the beginning of the production process to its end, tracking it in the markets through placing distinctive electronic tags on all products, to work on reducing traditional Khaberni direct control in factories.
The application of digital control on all cigarette production factories has been completed, and according to the instructions, cigarettes can only be produced with the presence of electronic digital control and the presence of the designated coding Khaberni on every cigarette pack.
The Director General of the Income and Sales Tax Department, Dr. Husam Abu Ali, argued that the national electronic billing system is a reform system that does not aim to impose taxes or increase taxes; it is a regulatory system for the purpose of transferring and documenting invoice data electronically, and does not incur any additional financial costs or burdens on the taxpayers obligated by this system.
Abu Ali clarified that the billing system was designed to achieve fairness among taxpayers, and was considered to be easy and simple for everyone who uses it, and capable of adapting Khaberni to deal with these systems without any changes.
He announced that the department has built a system to audit tax declarations electronically through artificial intelligence, whereby this system relies on risk management in auditing the information and data received by the department, comparing them with the data and information provided in the declarations according to the defined risk bases Khaberni, and the system was implemented in two phases including an electronic audit on company and establishment files (income and sales).
Abu Ali presented the most prominent achievements in the tax reform file through making many amendments to the principles and procedures, and building a database for all economic activities in the department, and transferring the burden of proof to the auditor considering the taxpayer honest in what he submits from information in the tax declaration unless proven otherwise, which has enhanced the trust between the taxpayer and the department.
He said that the level of tax auditing now "matches the best international practices," as the transition Khaberni has been made from traditional auditing to the use of artificial intelligence in auditing procedures, helping in expediting the processing of tax declarations by saving time and clearing responsibilities.
He pointed out that the department has also undertaken reform measures related to disputes between the auditor and the taxpayer, which are transferred to the Directorate of Litigation and Objections that includes high expertise and wide powers to settle dispute issues if any, contributing to reducing the number of cases that resort to court.
Abu Ali explained that tax evasion is defined as Khaberni violating the law whether through forging invoices or financial statements or concealing data, or presenting incorrect data intentionally to avoid paying taxes or reducing them, whereas tax avoidance is exploiting a loophole in the law with the goal of reducing the tax due on the person subject to tax.
He clarified that the fundamental principle in tax reform was enabling the department to play its role in combating tax evasion and providing all possible tools that are used to close any gaps, as well as providing the tools, human resources, and systems needed for that.
He mentioned that the tax, whether income tax or sales tax, is not paid by the rich and the poor at the same level.
He affirmed that the tax does not affect the poor or target them, as every married person with an income of 18,000 dinars in addition to 5,000 dinars in bills, totaling 23,000 dinars, is not subject to income tax.
He highlighted that there are tables that include many goods and services consumed by the middle class and the poor that are exempt from the general sales tax, in addition to some goods being subject to a reduced tax rate and not 16%, and clarified that all health and medical services Khaberni and litigation services in courts are not subject to sales tax.
