Volume 32, Issue 62 (2024)
J Tax Res 2024, 32(62): 7-44 |
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Ahmadi A, Boushehri M, Ariya Movahed E. Analysis of the impact of The Direct Tax Burden on the Shadow Economy in Iran: Application of Symmetric and Asymmetric approach. J Tax Res 2024; 32 (62) :7-44
URL: http://taxjournal.ir/article-1-2402-en.html
URL: http://taxjournal.ir/article-1-2402-en.html
1- , arz.ahmadi@ut.ac.ir
Abstract: (552 Views)
In the present study, first, the shadow economy was calculated using the MIMIC method. Then, by using ARDL & NARDL approach while explaining the asymmetric effect of the direct tax burden on the shadow economy, their quadratic relationship was also calculated in the period from 1980 to 2020. The results of the calculation of the shadow economy show that the highest and lowest volume of the shadow economy was in 2009 and 1980, respectively, with figures of 22.4 and 1.8 percent. In addition, the average figure of the shadow economy is estimated to be 16.6%. Also, the trend of the direct tax burden shows that it had a relatively fluctuating trend. The results of the long-run estimates show that although increases and decreases in the direct tax burden have a positive (direct) effect on the shadow economy, there is a significant difference between them from a statistical point of view, so the asymmetric effect of the direct tax burden on the size of the shadow economy was confirmed. The absolute value of the impact of reductions in the direct tax burden is greater than the impact of increases in the direct tax burden on the shadow economy. Also, according to the third research model, the direct tax burden has an inverted U-shaped effect on the shadow economy. The amount direct tax burden that maximizes the size of the shadow economy is 4.75%, and it indicates that before the ratio of 4.75%, the increase in the direct tax burden adds to the shadow economy, and then the reverse (negative) effect of the direct tax burden on the size of the shadow economy can be imagined. Other findings are that in both forms, oil rent and government budget imbalance have a positive effect and the degree of trade openness has a negative effect on the shadow economy.
Type of Study: Research |
Subject:
Management
Received: 2024/08/19 | Accepted: 2024/08/31 | Published: 2024/08/31
Received: 2024/08/19 | Accepted: 2024/08/31 | Published: 2024/08/31
References
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