Document Type : Research Paper


1 Assistant Professor, Faculty of Economics, Allameh Tabataba`i University, Tehran, Iran

2 Master of Economics, Faculty of Economics, Allameh Tabataba`i University, Tehran, Iran


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.


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