The Potential Presence of Tax Avoidance and Evasion in the Saudi Context and Appropriate Legislative Reactions

Abstract

Since Saudi Arabia unified, there was no tax system until 2017, when a new economic vision was introduced to diversify the revenue source rather than depending exclusively on oil. It seemed challenging to build a new financial regime in the modern world that mainly relies on tax as a primary income source. These new policies and approaches will guide the taxpayers' and States' behaviours in the years to come. Additional hard work and scholarly studies need to be done to pave the way for the State to interact appropriately with the tax and tax-related questions. One of the requirements for a successful tax implementation is for students and researchers to further study the internationally competitive tax systems that currently exist, in order to understand the tax logic better, with the hope that this understanding will result in the creation of suggestions to solve the problems and find global answers to the system's questions. By focusing on successful tax regimes, and the issues that have been addressed in these regimes, it is possible to analyse the intricacies of tax abuse with precision and to make recommendations related to the possibility of tax avoidance behaviours and plans in the Saudi context. Lastly, providing advice to the legislator to prevent the attitudes that drive tax base erosion and tax gaps in advance in light of the United Kingdom and United States tax systems, as they are considered two of the most effective and powerful economies worldwide.