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2009 Assessment

Syria: Integrity Indicators Scorecard

Syria: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
61	In law, is there a national tax collection agency?	0
62	Is the tax collection agency effective?	63
63	In practice, are tax laws enforced uniformly and without discrimination?	25
64	In law, is there a national customs and excise agency?	100
65	Is the customs and excise agency effective?	50
66	In practice, are customs and excise laws enforced uniformly and without discrimination?	25

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

61: In law, is there a national tax collection agency?

Score:

YES

Comments:

References: There is no a national tax agency, but the Ministry of Finance takes care of collecting taxes in Syria.

Peer Review Comments: It's follow to Ministry of Finance.

Is the tax collection agency effective?

62a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: Interview with an expert by phone, Damascus, February 2, 2010

References: The Ministry of Finance has a limited staff to fulfill its mandate; also, they are not well-trained and are less experienced in the use of the new system or technology.

Peer Review Comments: Tax collectors and those who assess the level of tax required are routinely bribed to lower the amount of tax paid.

Peer Review Comments: They are civil servants

62b: In practice, the tax agency receives regular funding.

Score:

100

Comments: Interview with an expert by phone, Damascus, February 2, 2010.

References: There is no national tax agency; tax collection is part of the Ministry of Finance, which depends on its funding from the government; most of the funding covers only the salaries of the employees.

In practice, are tax laws enforced uniformly and without discrimination?

63: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: Interview with an expert by phone, Damascus, February 2, 2010.

Also see: Bassam Haddad, "Business As Usual in Syria?" Middle East Report online, September 7, 2001, [ LINK ]

References: The Ministry of Finance and its department of tax has sometimes increased the tax on some businessmen who criticized the government for its domestic and foreign policies; for instance businessman like Raid Seif and Mamoun Houmsie (both of whom are former Ministers of Parliament) in 2001; this creates an understanding that the government can use the tax as a tool to silence the private sector.

Peer Review Comments: Almost yes, but there is many cases of Tax evasion

In law, is there a national customs and excise agency?

64: In law, is there a national customs and excise agency?

Score:

YES

Comments: [ LINK ]

References: It is called the General Customs Administration.

Is the customs and excise agency effective?

65a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments: Interview with an expert by phone, Damascus, February 3, 2010.

References: The General Customs Office has unqualified staff to fulfill its mandate they also lack training and knowledge in the use of the new system or technology.

"Bribe" is the magic word inside this office.

65b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments: Interview with an expert by phone, Damascus, February 3, 2010.

References: The General Customs Office depends on its funding from the government: it has a regular source of funding.

In practice, are customs and excise laws enforced uniformly and without discrimination?

66: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments: Interview with an expert by phone, Damascus, February 3, 2010

Al-Khabar, Damascus, February 19, 2009

[ LINK ]

References: The General Customs Office has the most corrupted and unqualified staff in comparison to other departments or agencies in Syria.

"Bribery" is the magic word inside this office.

The case of Hasan Makhloouf, who was the head of this office for more than a decade, is very well known in Syria. The prime minister fired him in February 2009 and confiscated all his property and the froze the bank assets for Makhlouf, his wife, his five children, his parents, his ten brothers and his agent. The media later discovered that he had over 137 homes and farms in five different Syrian cities.