MODELING OF THE TAX SYSTEM UNDER SELF-ASSESSMENT

Abstract

The research aims to give a theoretical review about panel data linear regression modeling, to model the tax system under self assessment to predict the taxable income and to encourage the chamber of taxation to improve its management information system and to use the statistical methods for planning, organizing and making decisions. The data is collected from the chamber of taxation, medium companies tax center for the year 2005, 2006 and 2007. The study is organized in four chapters: Chapter (1) Introduction, Chapter (2) Panel Data Linear Regression Modeling, Chapter (3) Analysis, chapter (4) Results Recommendations. The result of the data analysis and manipulation five is estimated models (see chapter three). Although all the five models are significant, the researcher considers model (3-3) as the most appropriate model for the data, it has a considerable and it shows the effect of the time on the amount of the taxable profit. The model also consistent with nature of the data in that the actual taxable profit is increased according to the time. The following are the results of the research:- -The total profit and the total expense are fundamental factors in determining the taxable profit. -We can model the tax system under self assessment to predict the taxable income. The panel data regression is sufficient to be used for modeling the taxation data. The researcher recommends the following points:- -The chamber of taxation should have an obvious well identified strategy for data registration, presentation and preservation. Such strategy will provide the chamber with sufficient reliable data for building statistical models and doing other statistical analysis. -Adopt an advanced training plan and provides the inspectors with chances for training in using computer and modern information systems. - Computerization of the chamber’s system and provide the department of statistics and information with qualified statisticians, and motivate scientific studies that concerns tax. -We can build a regression model with good predictions if we create a good scientific database and capture all the variables that can affect the taxable profit. -Promotion of the statistical curriculums to provide the students of statistics with a good knowledge about the modern statistical analytical programs and Encourage the students of all fields of specialization to study statistics and inform them with the statistical analytical programs, how can they be used to analyze an statistical data, and how to interpret the results.