Document Type : Original Article
Highlights
The gross tax gap is the difference between true tax liability for a given tax year and the amount that is paid on time.
Once the tax is assessed it has to be paid within the time fixed by the law. The
protest/appeal suspends this obligation. the taxpayer typically does not have to pay the tax when the taxpayer protests/appeals, until there is a court decision. Although most countries provide for the suspension of tax collection under certain circumstances. The process of extended time to the tax objection and multiple authorities for dispute resolution delays in the payment of taxpayer’s tax debt. In cases where a protest/appeal suspends the collection of the tax, the law should allow the tax administration to take preventive measures (such as freezing assets), to ensure that the taxpayer pays the tax.
However, the right of appeal against any decision of the tax authorities applies to all taxpayers. The administrative decision being protested often refers to several taxes and time periods. Therefore, Dispute resolution was one of the possible improvements to tax policy.
The first step in resolving tax disputes is tax administration. Administrative Adjudication will discuss the significance of reducing the tax gap. The Internal Revenue Service's (IRS) will take to increase voluntary compliance and reduce the tax gap.
Efficiency of the first stage of Tax Adjudication proceedings according to Article (238) of the Law on Direct Taxes and Article (29) of the Law on Value Added Tax resolve tax disputes of taxpayers and prevent the case from entering tax dispute to the Tax Courts.
The IRS Independent Office of Appeals is here to resolve disputes is the only administrative function of the Internal Revenue Service (IRS) with authority to consider settlements of tax disputes and has the primary responsibility to resolve these disputes without litigation to the maximum extent possible.
Appeals provides an informal forum for taxpayers who disagree with an IRS determination.
Thus focusing on IRS Appeals, Chief, will initiatives to Resolve Disputes Over Tax Liabilities, including to use Alternative Dispute Resolution (ADR) techniques and negotiating settlements in a manner which ensures right of taxpayers.
In particular, the tax disputes of administrative authorities and the expansion of the powers of the heads of tax affairs in order to reach more agreements and collect taxes as soon as possible.
Since, excessive tax litigation can lead to a delay in collecting a large amount of tax, the IRS can be issued regulations on awarding administrative and litigation costs to a prevailing party, reimbursement of litigation costs to prevailing taxpayers in any administrative or court proceeding brought by or against the United States for determining, collecting, or refunding any tax, interest, or penalty. Therefore protracted tax litigation can also be costly for the private sector, both by way of litigation costs and uncertainty created.
And The tax ceiling for the cases before entering the tax courts leads to the realization of maximum revenues and minimizing of the tax gap.
In principle, the rule of law calls for every tax administration decision to be subject to judicial control. According to, Quasi-Judicial Bodies and the Court of Administrative Justice as the final reference is for establishing and running a trial monitoring operation in the field of administrative justice.
The Court of Administrative Justice of Iran, as the supreme authority of administrative proceedings, concentrated on its main task, which is to control administrative rights and actions. This article seeks to consider some of the strategies, set out in it as a practical model by considering the reform of the tax system.
