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3/5/2016 0:00

Chaoui: arbitration and preferred means to resolve tax disputes

BAGHDAD - Imad emirate

said the scholar d. Abdullah star Chaoui from the Faculty of Business and Economics at Mustansiriya University: "The indirect taxes in Iraq contribute to a large proportion of funds compared to direct income taxes, so as to get it and easily collected, so Vahmatha increasing day after day."

He explained Chaoui in an interview for the "morning "the multiplicity of types of customs duties, excise taxes, sales, value - added, hoped to be imposed in Iraq, have an impact actor in tax revenue development." attracting investment and stressed that Iraq needs to attract investment to achieve economic development through investment climate to provide legal and economic Banazare . He Chaoui does not exist in Arab countries low price equivalent to the tax in Iraq rate of 15 percent, and the most ease the tax burden on the investor mechanisms are modifying the legal texts and the process of tax reform must be a top priority, the development of a distinct legal mechanism to resolve disputes between the investor and the administration tax and encourage the principle of conciliation and arbitration, because the investor looking for the State where the arbitration system and does not favor the judicial system in which prolonged disputes. Shawi pointed to the pursuit of any tax system to achieve the goals between the financial and economic, social and even political, and vary relative importance depending on the state 's role in social life and the degree of intervention in economic activity, and in spite of the existence of the likelihood and the difference in the degree of importance of these goals on each other, but in the end the financial goal remains to occupy the degree of the lead on the rest of the goals, although there are many kinds of taxes, whether directly or indirectly accounted La Paz where the financing of the budget for different countries , whether they developed as in Russia, Sweden or developing , as in Jordan and Syria, but in Iraq there are specific types imposed. direct taxes , adding Chaoui that direct taxes are taxes on capital on the occasion of his move from hand to Other, so they do not levied under par tables, but on the occasion of the facts and actions such as the production good or import goods from abroad, they are Atsb directly in charge of the person, but rather paid indirectly Full consumption of goods or access to services imposed by the tax, is a tax is directly if he in charge of the transfer of burden to others , as is happening in the customs tax. He added that the world today was launched by the ideas of globalization and trade liberalization and the removal of restrictions and obstacles to pay for goods and services and capital between countries , without protectionist measures or restrictions of any kind, and that a lot of states I went to the opening up to the world and embraced equality between the foreign investor and national investor in the transaction, no doubt that the removal of these obstacles to investment promotion is an important step. tax breaks and noted Chaoui that tax breaks pursued by the Arab countries, believing that the policy that the tax exemption is an effective weapon to encourage investment because it relieves the investor the burden of performing tax so increase net profit, which makes investors prefer countries which gives him more exemptions, stressing that the policy did not succeed in many countries and for many reasons, including that the temporary tax exemption or a limited duration does not encourage short investment term, who wishes to recover its capital and reap profits in a short time and this is what pubic Egypt, and that the foreign investor to Estvid of the exemption granted by the host country, because the investor belongs to the state implements the principle of universal revenue which means subordination of all income derived by the investor in his country, whatever the country was a source of revenue, making the tax exemption granted by developing countries to the investor, but it is a waiver of tax states for its share of the tax, for the benefit of the state to which he belongs , without the investor to benefit from the exemptions effectively. he pointed out that some of the agreements to avoid double taxation entered into by the countries are trying to mitigate this fact, but these reasons , began to talk in the tax policy towards the rationalization of tax breaks and urge the mechanism to ease the tax burden on the investor 's orientation.