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Article Title:
The Challenges of Developing an Effective Income Tax System that Can Bring Additional Source of Income to Kurdistan Region of Iraq
by Rayan Naoom and Saman Mahir Zubair

Abstract:
This research aims at investigating the factors that has hindered the development of income tax system of KRI (Kurdistan Region of Iraq). The main factors selected to focus on are: Institutionalization, Political Stability, and Economic Stability. This study was motivated by the question, ?What are the obstacles that the current income tax system and tax officials facing in terms of socio-cultural, socio-politics, and socio-economics?? This study focuses on finding the effect of those three variables on the development of income tax system of the region. With no previous studies about such important topic, and with the lack of institutionalization, political, and economic stability and their impact on the development of an effective tax system, this study is to find the characteristics of an effective tax system with stating what the obstacles that face the development and implementation of an effective tax system in a developing state. The result show that both variables of institutionalization and political stability have a great impact on the development of the income tax system. However, the third variable of economic stability has been the opposite of the expectations as it did not contribute to the development of the income tax system in the past decade during which the economy was stable and booming.

Keywords: income tax, institutionalization, political stability, economic stability

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