Amman: Jordanian tax authorities have uncovered a software scheme designed to help businesses evade taxes by manipulating the country’s electronic invoicing system, the Income and Sales Tax Department (ISTD) said on Monday. A software development company had created and marketed an accounting program that enabled clients to hide part of their revenues and manipulate invoices, thereby reducing declared sales and evading taxes, the department said in a statement.
According to Jordan News Agency, officials from the department’s tax evasion unit, along with IT security auditors, conducted inspections and identified multiple companies using the software, which was designed to avoid integration with the national e-invoicing platform. Under Jordan’s income tax law, failure to issue proper invoices via the approved national e-invoicing system constitutes tax evasion. The law also criminalizes the intentional creation or distribution of software designed to falsify financial records.
The department warned software companies to ensure their products comply with tax regulations and urged businesses to avoid using unauthorized systems that could expose them to legal liability.