A new app has been launched by the government to report tax evasion, and investigations are being conducted to prosecute tax evaders.

The Jordanian competent authorities are investigating multi-million-dinar tax evasion and money laundering cases. They carried out raids on about 700 companies, to carry out audits and audits to verify tax revenues.

The latest decisions taken were precautionary seizure of funds and properties belonging to a former minister and major contracting companies, under the pretext of tax evasion.

The Integrity and Anti-Corruption Commission is in the process of signing a memorandum of understanding with the Income and Sales Tax Department with the aim of cooperating and setting strict procedures to prevent tax evasion and work to recover tax money through the authority and the memorandum is under procedures between the two parties.

Extra evidence is available upon request.

Updated: October 31, 2020

A definition of tax evasion has been identified and put in place: “use fraudulent methods that involve fraud, deception, forgery and concealment of data, the provision of fake data or intentionally participating in any of these acts with the aim of not paying the tax or reducing it according to what is specified in the law” (law of income tax, number 34 amended to 38 – year 2018). A specific set of activities are carried out in order to identify and prosecute tax evasion: - Background check on parties involved; - If it is found that there is an illegal action, parties will be prosecuted; - If found guilty the parties will have to pay the amount of money evaded; - If this is done again, guilty parties can go to prison between 4 months and 2 years; and the amount of years in prison following that will correspond to how many times they have repeatedly committed the crime. - Code of conduct for public and private sector - Professional enablers, if found guilty, will go to prison for as many years as they repeat the offense.

Peer reviewer: 1

Updated: April 30, 2020

"Following a recent amendment of the income tax law and its instructions, effective as of 2018, a clear definition of tax evasion was introduced. It defines tax evasion as “The use of fraudulent methods that involve cheating, deception, falsification, concealment of information, submitting false statements, or participating in any of the aforementioned intentionally for the purpose of not paying or declaring the tax due, in whole or in part, or reducing the tax due as specified in this Law.” The law also includes increased penalties on tax evasion crimes and recurrence of such crimes, as well as articles that empower the Tax Department to request from the public and private sectors the provision of any information that it deems necessary, through linkages with its database, providing guidance on how to share and disclose tax information. The law has introduced regulations and instructions to develop an “invoice system” among other measures to ensure the prevention of tax evasion. However, the legislation is still subject to further development." The evidence is an official statement of the law amendment for the tax - March 2019.

Updated: April 30, 2019