Low-Cost Computers for the Developing World Essay

Introduction The tax in all ages of the main themes that ran researchers because of their Close contact conditions peoples, and that in terms of political, economic and social, Taxes are link material that binds the individual government, one of the most important tools used by governments in drawing its financial, economic and social terms used tax revenue first in the financing of programs of public expenditure that has become increasing in moment . Taxes working to raise the economic efficiencies when the exploitation of economic resources and guidance these resources to better use and to achieve social justice in the distribution of income and achieve economic stability where justice is no longer only socially, but became a vital requirement in achieving national security in the community as well. Thus the state with individuals involved in achieving these goals and to achieve security inside and outside, but some taxpayers, and who want to provide services directly in the performance of their pay tax, as expected consumer benefit directly from having to purchase a good or service ignored , so the nature of the relationship between the state (IRS) and citizens (in charge) and they get rid of the legal obligation to pay their taxes partially or completely and using a number of methods and techniques fraudulent by refraining from paid the public treasury, and that means tax fraud . So we look at this study the issue of evasion in value added tax and known shortened VAT, and is a general tax levied on businesses that produce and distribute goods and services, and is the VAT tax on consumption because Stoic final it is the consumer, despite the fact that collected is the producer or distributor. Where the subject will be studied theoretically and problem will be identified and the objectives and methodology and the study sample. Objectives study This study aims to achieve the following objectives : – Get free professions and trades that are subject to VAT. – study the legal texts of the relevant laws in liberal professions and link them to the collection tax . – Get nature and forms of evasion in VAT the self-employed . – Get the underlying causes of evasion in VAT the self-employed .. – Develop appropriate mechanism to deal with tax evasion to the self-employed . Problem Statement Is the increase of the rate of value added tax (VAT), the nature of the political system and double taxation would lead to VAT fraud ?! The relevance of the study The importance of this study lies in the need to educate self-employed seriousness evasion in vat and the consequent negative effects on the financial activity of the State, and comes through definition of this category duties tax and rid them of the issue of inheritance Social which prevailed between groups of Palestinian society, including self-employed before the advent of the Palestinian Authority, where he was in charge of the Palestinian is evasion of taxes national action, because the tax revenue goes to illicit destinations . Literature review According to Smith and Stephen (2007) ,they resorted to some of european experiences of European countries. This study aimed to reviews what is known about the exposure of the VAT to revenue losses through noncompliance, with a particular focus on fraud and evasion,and considers what can be done in respons. And they are follow the methodology to eliminate fraud in the VAT, by used More radical measures within the context of a system that preserves zero-rating include , The use of ‘reverse charging’, by which liability in a business-to-business (B2B) transaction is placed on the buyer rather than the seller. This would deal effectively with the carousel fraud, and by ending the gradual cumulation of VAT payments through various stages of production and distribution and instead collecting all VAT revenue at the final sale, the system is exposed to substantially greater risks of revenue loss through unreported sales to final consumers , With a retail sales tax all tax revenue is lost if a sale to final consumers somehow goes unreported, while with a VAT the losses are limited to the difference between the VAT due on the final sale and the VAT already collected at earlier stages. Smith said that have argued that a longer-run and durable solution to the problem of missing trader fraud requires a fundamental redesign of the VAT treatment of international transactions and this Systematic reform that eliminates the root cause of missing trader fraud would be a much more appealing long-term strategy than the combination of resource-intensive enforcement operations and ad hoc ‘fixes’ such as extended reverse charging, which may provide temporary relief. The study of Richard(2011) , focused on a technological methods in the fight against tax fraud.This study aimed to fighting tax fraud (vat) bye using a technological method of this . So there is a three leading technology-based solutions will be considered here: the Real Time VAT (RTvat ) the VAT Locator Number ( VLN) system and the Digital VAT (D-VAT), There are important differences among them, but generally, the RTvat focuses on securing the tax, the VLN focuses on securely tracing the supply, and the D-VAT certifies that the correct tax is charged collected, and remitted. Richard have reached some conclusions based on technological solutions developed that The RTvat is applied to all transactions in a VAT system. It changes the underpinnings of the VAT, moving it from an invoice system to a settlement system. The withholdingand-remit element of a VATsystem has been effectively removed and VLN also applies to all transactions in a VAT system but leaves the basic structure of the V AT untouched. It simply adds an encrypted tracer code to every invoice. As Borselli’s stydy that aimed to firstly, it outlines the fraudulent VAT schemes that pose the most serious threat to the functioning of the VAT system, and evaluates the effectiveness of the strategies adopted to combat and prevent that type of fraud. Secondly, it comments on the costs and benefits of more far-reaching measures to be implemented in the near future at EU and national level.He follow the mechanisms that fighting taxation fraud as , A hybrid reverse charge mechanism would also give rise to other issues. Firstly, it would lead to a substantial increase of VAT refund claims by taxable persons, who pay VAT to their suppliers (on their inputs not exceeding the threshold value), where their output transactions are subject to the reverse charge mechanism. Secondly, treating identical transactions differently for VAT purposes reduces the effectiveness, of anti-fraud measures , increases the complexity of the management of the VAT system and requires a tough control system in order to protect Member States from adverse effects. Where it was concluded that the need to maximize the effectiveness of the strategy to combat VAT fraud cannot be separated from a broad view on the functioning of the VAT system as a whole. Available mechanisms interact, require a high degree of adaptation to the economic and legal context and must be a constant of the Member States’ regulatory framework. This means that there is not asingle road† to a more efficient VAT system and that it is inappropriate for Member States to simply copy and transpose the measures taken by other Member States into their national legislation. In 2011 , Kaspar Lind , faocused in his aticls on the issues of ï ¬  scal fraud, closing of transactions, and good faith , and to analyse Estonian legislation and the practice of the Supreme Court and its development in the past 10 years, and to compare it to the practice of the European Court of Justice. Given that fiscal frauds are a serious problem, According to that , the payment for goods or services would take place through the bank, and the bank would divide the payment into two parts (the price of the goods or services and the amount of tax), of which the amount of VAT would be paid directly to the tax authority. With the second scheme, a central database is created for invoices taxed with VAT that the tax authority can monitor in real time. Thirdly, separate VAT databases are used that are very easy for the tax authority to access in order to check invoices. Certiï ¬ cation is seen as a fourth solution. Aside from the reverse charge, the ï ¬ rst solution is considered the most effective;however, it would require a substantial transformation of the existing system. The other three models might improve supervision but do not directly ensure a better receipt of taxes. He said † Although they can draw general conclusions on how to act with regard to the VAT system, due diligence may depend greatly on each country’s legal order and practice. As a result, it is very difï ¬ cult for entrepreneurs to operate in different European Union Member States. Often entrepreneurs can learn of the exact content of their due diligence only in the course of judicial proceedings, but that might entail tax liability† In recent years ,The European Union’s VAT system has become vulnerable to organised fraud schemes , so there is an schemes studied by Fabrizio Borselli. This article shows that need to maximise the effectiveness of anti-VAT-fraud strategy cannot be separated from a broad view of the problem and of the functioning of the VAT system as a whole. A drastic change in the VAT system might provide a robust defence against fraud but produce uncertain effects. The study showed the most important policies established by the member states to fight fraud by developing early-warning systems for sectors and transactions at risk. Since missing traders need to enter the market before committing the fraud (i.e. to obtain a VAT identification number, unless they hijack another trader’s VAT number), a sound system of preventive risk analysis is essential for effective antifraud action. Many EU Member States use advanced software for risk analysis and electronic databases containing macro and micro data on traders, including the economic sector in which they operate, their financial situation and ownership, their payments, declarations and refunds of VAT . As pointed Bouresli that Policy initiatives could be initially limited to certain sectors and companies, with wider structural measures implemented afterwards, taking advantage of further developments in IT and harmonisation of the EU legal framework. New types of fraud are technology-intensive: technology itself appears to offer some of the best answers. According to Dr. Konstantin Pashev (2006) , Adopted the Bulgarian experience in identifying the types and modus operandi of VAT frauds with a focus on the abuse of tax credit. It analyses the elements of tax design permissive of such abuses and discusses the possible solutions in the light of the international and domestic experience and the capacity of the tax administration , Where indicated dr. Pashev the mechanics of organized fraud by fictitious export and the missing (insolvent) trader fraud. In the case of fake exports, the exporter carries the transaction on paper, applying the zero VAT rate on exports and claiming tax credit on the inputs, while actually selling the products on the domestic market without sales invoices, i.e. without paying VAT. A safer version would use real exports, but would overstate the quantities exported . The study concludes that the possible solutions should be sought along the lines of optimizing risk management and the principle of joint liability rather than through tighter controls at entry and on the conduct of business. the theoretical framework and methodology of the study : VAT(Value-Added Tax) is a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK. It’s also charged on goods and some services that are imported from countries outside. Whereas VAT fraud is a scheme through which businesses avoid paying VAT and even claim refunds for VAT they never pay. Such businesses actualize their criminal intents using different established methods. Thus, different types of VAT fraud can be identified, which governments of VAT-administering countries have spent huge amounts of money to investigate and checkmate. review by looking at the literature review of the value-added tax in particular and some of the variables that affect them in general, including income tax, inflation, and the nature of the political system in the country. Since each variable has a direct relationship in its impact on the value-added tax. Independent Variables :- Inflation Rate of income The natural of political system Dependent Variable VAT Fraud In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time , When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a loss of real value in the internal medium of exchange and unit of account within the economy as the inï ¬â€šation rate rises, the money demand becomes increasingly interest elasticity, as in Cagan’s model, and credit is increasingly used to avoid inï ¬â€šation, instead of using leisure; this implies that velocity rises at a faster rate, and the growth rate falls at a decreasing rate. Politics system tells you how a society must be set up and how one should act within a society. Except for hermits, this comes up a lot. As for the relationship between the nature of the political system and tax fraud interpreted as the lack of confidence in public spending policy , no doubt that the way to spend the proceed of tax impact on the psyche of financiers overhead costs, as if mony spend in the faces of the benefit of binding it feels comfortable and reassuring , he may give tax willingly , Which makes the system vulnerable to deception and fraud . As for the rate of income is defined as follows , a tax that governments impose on financial income generated by all entities within their jurisdiction. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund. Income tax is a key source of funds that the government uses to fund its activities and serve the public. Hypotheses There’s a relationship between VAT fraud and inflation .   Since there is a relationship between the level of income and tax fraud. There is a relationship between the political system and investors went to tax evasion, as it depends on the policies directed by the state. The population and the sample of the study Since I will talk about the VAT fraud in private sector, the population is the Palestinian private sector companies, and the study sample will be a number of these companies. Data collection The data were collected from two resources of data: Secondary data* Which is the data that developed for the purpose other than helping to solve the problem on hand? Some of these data are books, journals, articles, website, and internet it’s considered as a useful sources of information for historical background, and theoretical framework. Primary data* Among the choices for collecting the primary data such as: observations, survey questionnaires, and interviews .Taking into account the research problem the survey questionnaire is the best alternative for this research . Bibliography and Reference List Smith, Stephen.2007. VAT fraud and evasion, VAT Fraud and Evasion: What Do We Know, and What Can be Done? 10 Ainsworth, Richard.2011. VAT Fraud and Technological Solutions. Tax Analysis,19. Borselli, Fabrizio.2008. Pragmatic Policies to Tackle VAT Fraud in the European Union, International VAT monitor, 10 Lind, k, 2011.VAT fraud and the fighting against IT In Estonia, JURIDICAL INTERNATIONAL .P.152-160. Borselli, F,and 2011.organised vat fraud : features, magnitude , policy perspectives, RePEc-Research paper in economics . # p 43 Pashev, Konstantin, 2006.fighting VAT fraud: the Bulgarian Experience. #p. 20