Tax Collection Mechanism Back to Basics from Tax Bureaucracy to Tax Farming: The Case of Jordan
Shamsi S. Bawaneh

Abstract
This research paper aims at reporting the current use of tax collection mechanism in Jordan. The data generated by two sources: primary and secondary sources that include interviews with senior tax employers to be able to have close look at the way of collecting taxes and the problems may face during processing tax collection. Jordanian economy is considered as developing economy and in regards to tax sector the administration costs is souring and the tax evasion rates is rising which makes the tax farming mechanism is fit to the Jordanian case to improve tax collection mechanism in Jordan. Tax farming has advantage and disadvantages but it will solve the problems exist in the Jordanian tax sector and the taxing authority can take tips and lessons from the tax farmers of the way they used in collecting taxes. By applying tax farming in Jordan, the tax collection may improve and may stop the tax evasion, which increase the government revenue rather than increasing the tax rates on the individuals who are not evading taxes in the short-run bases then creates new tax collection mechanism while using the tax farming to improve and evaluate the new tax collection mechanism. This approach lets the government test the new collection mechanism partially and let the other part of the tax farmers insure about the effectiveness and the efficiency of the mechanism. The researcher didn’t cover the cost benefit of the tax farming mechanism and the effect of the tax farming on the future cash flow on the treasury which may need a feasibility study on implementing tax farming in Jordan.

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