Tax evasion by businesses using social media platforms in Iraq, according to the provisions of the Iraqi Income Tax Law No. 113 of 1982, as amended

Abstract

Digital tax evasion  is currently considered of the most significant economic problems in Iraqi, as it is increasingly conducted through social media platforms such as Facebook, instagram, tiktok, and you tub. Since taxation represent one of the most important sources of revenue  on which the state relies to finance its public expenditures this  form of evasion has generated significant legal and financial challenges for the tax administration. These challenges have emerged due to the increasing use platforms by individuals to  advertise goods, in the absence of specific tax legislation regulating electronic commercial activities an determining the extent  it which they fall under  the provisions of the Iraqi income tax law no.113 of 1982, as amended . moreover, the tax administration lacks a specialized body keeping pace with these activities and of identifying the tax bases of individuals engaged in such digital activities income tax . To examine the issue of tax evasion for businesses using social media in Iraq, in accordance with the provisions of the Iraqi Income Tax Law No. 113 of 1982, as amended, we will divide this study into two sections, each with two subsections. In the first section, we will discuss the nature of tax evasion for businesses using social media in Iraq, in accordance with the provisions of the Iraqi Income Tax Law. In the second section, we will discuss the analysis of the nature of profits for businesses using social media in Iraq, ways to reform and digitize tax revenues, and the position of the Iraqi legislator regarding the extent to which these profits are subject to and proven by the provisions of the Iraqi Income Tax Law