Analysis of the Effect of Oil Rent on Tax Evasion in Iran: Focusing on the Exchange Rate

Ahmadi, Ahmadreza; Azhari, Fateme

Volume 33, Issue 65 (2025) J Tax Res 2025, 33(65): 201-239 | Back to browse issues page

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Ahmadi A, Azhari F. Analysis of the Effect of Oil Rent on Tax Evasion in Iran: Focusing on the Exchange Rate. J Tax Res 2025; 33 (65) :201-239
URL: http://taxjournal.ir/article-1-2408-en.html

Analysis of the Effect of Oil Rent on Tax Evasion in Iran: Focusing on the Exchange Rate

Ahmadreza Ahmadi ^*¹

, Fateme Azhari²

1- Allameh Tabataba'i University , arzahmadi@yahoo.com
2- University of Mazandaran

Abstract: (19 Views)

Crude oil and its rent can have advantages and disadvantages for oil-rich countries. Many studies have investigated the effect of oil rent on various variables such as economic growth, inflation and financial development. Meanwhile, the possible role of oil rent on tax evasion by focusing on the exchange rate has been a topic that has not been considered by the authors in the studies. For this purpose, in the current research, the relative size of tax evasion was first calculated using the Multiple Indicators-Multiple Causes (MIMIC) method, which indicates an average of 8.1% in Iran's economy. Then, using the ARDL approach, the effect of oil rent on tax evasion was investigated and tested with regard to the role of the exchange rate in the period from 1980 to 2022. The results of long-run estimates show that oil rent has a positive effect on tax evasion and the positive effect of oil rent on tax evasion is affected by the real exchange rate. In such a way that in higher values of the exchange rate, the size of the positive effect of oil rent on tax evasion in Iran is intensified. Also, the trade openness has a negative effect and unemployment and inflation have a positive effect on tax evasion.

Keywords: Tax Evasion, Oil Rent, Exchange Rate, MIMIC, ARDL, Iran.

Full-Text [PDF 903 kb] (19 Downloads)

Type of Study: Research | Subject: Economic
Received: 2024/08/23 | Accepted: 2025/05/31 | Published: 2025/05/31