The Role of Internal Control in Rationalizing Tax Spending / An Applied Study at the General Tax Authority

Abstract

The research aims to clarify the concept of internal control as an important tool in serving management, due to its fundamental role in ensuring the safety and security of work, addressing deviations, and stating the role of internal control as an independent variable in rationalizing tax spending as a responsive variable. In addition to identifying the levels of its practices, the importance of the research lies in shedding light on the reality of internal control and the importance of this system in providing decent work and economic growth, especially considering the significance of the research topic in public organizations, and its importance to the General Tax Authority and society, and the variable related to tax expenditures. The research community was represented by the General Tax Authority, and the research sample was represented by the department of major taxpayers for two foreign national companies. The research years were (2020, 2021), and the data was analyzed based on the annual controls issued by the General Tax Authority for calculating the taxpayer's tax, as well as calculating it based on exemptions, allowances. The researchers reached a number of conclusions, the most important of which is that internal control plays a role in implementing and applying laws, regulations, and instructions, leading to an increase in tax revenue.