Reza Zamani; Sepideh Mohsen Pourian
Abstract
We use the budget expenditure approach to evaluate tax evasion of self-employed businesses in Iran. As self-employment guilds cover various jobs, we choose dentists as a sample. Facing limited data access, we use household budget expenditure in 2016. We first calculate the the income of dentists’ ...
Read More
We use the budget expenditure approach to evaluate tax evasion of self-employed businesses in Iran. As self-employment guilds cover various jobs, we choose dentists as a sample. Facing limited data access, we use household budget expenditure in 2016. We first calculate the the income of dentists’ society and then estimate the income tax they should pay according to the tax law. Finally, we compare the actual income tax paid with the calculated income tax to estimate the tax evasion. Since the data published by the two official institutions are different, we have two different numbers of dentists: 20405 and 26301. We find that in both cases, like other countries in the world such as the United States, England, Italy, Russia, and Greek, self-employed individuals have a high level of tax evasion.
tayebe chaman; parisa mohajeri; Ali Arabmazar Yazdi
Abstract
The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial ...
Read More
The purpose of this paper is to identify factors affecting tax evasion with emphasis on financial development. For this purpose, we estimate an ARDL model for the period 1978 to 2014. Our results show that, at first, there is a long-run relationship between tax evasion and explanatory variables (financial development, literacy rate, government size and industry value added (%GDP). Secondly, financial development has a significant negative effect (in short-run and long-run) on tax evasion. In other words, higher financial development leads to lower tax evasion. This finding is consistent with the theoretical expectation. Thirdly, literacy rate, government size and industry value added (%GDP) have a significant negative effect on tax evasion. That means tax evasion is decreases by increasing each of them. Also, the variables of GDP per capita and tax complexity did not have a significant effect on tax evasion.
meysam amiry
Abstract
Most tax policies that are based on tax-payer decision-making are drawn upon classical economic models. Studies, however, indicate that decision-making models which lack psycho-social bases and are merely designed based on economic parameters, cannot fully explain developments and evolution of actions ...
Read More
Most tax policies that are based on tax-payer decision-making are drawn upon classical economic models. Studies, however, indicate that decision-making models which lack psycho-social bases and are merely designed based on economic parameters, cannot fully explain developments and evolution of actions by decision-makers. Therefore, a large body of literature has been formed about analysis of tax-paying decisions based on behavioral economics. In the present study, a brief overview of the theoretical bases of behavioral economics, as well as both theoretical and practical research conducted in this field, are going to be presented. Unfortunately, relevant studies have been indicative of increasingly widespread of tax evasion in our country despite various measures taken in this regard. Considering factors related to behavioral economics that are influencing tax evasion and using policy-making capacities stated in this approach may apparently help Iran reduce tax evasion and improve the effectiveness of its tax system.
Maliheh Khajavi; Ebrahim Rezaei; Hassan Khodavasi
Volume 11, Issue 42 , October 2011, , Pages 65-90
Abstract
Underground economy has various names in economics literature like, black
economy, unregulated economy, and unreported economy and so on. Since there is no exact
definition for the Underground economy, in this study we try to measure it indirectly by
using the observable variables and build a model ...
Read More
Underground economy has various names in economics literature like, black
economy, unregulated economy, and unreported economy and so on. Since there is no exact
definition for the Underground economy, in this study we try to measure it indirectly by
using the observable variables and build a model to explain it. Then we try to estimate the
model by Maximum likelihood and Instrumental Variable methods.
The aim of this paper is to estimate the size of the Underground economy in Iran by
using the unobservable variable model (Multiple indicator and multiple causes). Our
estimates show that the share of the Underground economy in Iran was about 17.21 percent
of the Gross Domestic Product (GDP) during 1350-1386. Our result also indicates that the
tax Gap was about 22 percent of the total tax revenue for the above-mentioned period. For a
number of reasons, which will be discussed later in the main text, the size of the
Underground economy and tax gap is increasing for the foreseeable future in the economy
of Iran.
