Journal of Tax Research

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This research seeks to review systematically the role of electronic invoices in the effective management of the Iranian tax system and its functions, as well as to identify the best possible solutions to deal with possible implementation challenges in this field. The research method in this study is “systematic review” which has been used as “a tool to analyze and understand research and reports related to electronic invoicing in an effective way and with considering of the dispersion of resources”. The searching process in this research has covered the most reliable sources of the last decade in the area of electronic invoices and related systems, and in applying this research method, the researchers have committed to the main objectives of the PRISMA guidelines for developing a systematic review protocol. In this framework, after preparing the resource database, data coding and analysis has been done using the Nvivo 12 program. By using the electronic invoicing system, Iranian National Tax Administration (INTA) can attain significant advantages, especially in the fields of provision of better services to taxpayers and promoting a culture of voluntary compliance, tackling tax evasion, creating economic transparency, facilitating the process of tax reporting and efficient and fair collection of value added tax revenues. In return for the mentioned advantages, the executive solutions in confronting the challenges in this field, such as the possibility of violations in B2C transactions and the non-realization of perfect removal of tax evasion in this sector, the cost and implementation burden for taxpayers, as well as specific transaction processes and businesses including uncertain and changeable transactions, should be taken into consideration.The most important achievements of establishing the electronic invoicing system may be defined in the form of (1) risk management and prevention of tax evasion, (2) reduction of tax compliance costs and burden and (3) developing sustainable resources, economic transparency and access to reliable information needed for economic forecasts in support of comprehensive and macro programs of the Government. Also, the regulatory frameworks, the level of maturity and characteristics of businesses, and the capacity and level of aptness of the Iranian tax system are the most important considerations and key points in the effective implementation of the electronic invoicing system and achieving the aforementioned goals, which should be considered by policymakers and executives in this field.
 

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The present study examines the motivation for changes in the profit ratio of the activities of the actual taxpayers (Intacode) in the tax affairs Directorate of Tehran city. To present a more correct image of the business activity and maintain the position and personal interests, the actual taxpayers may follow a decreasing change in the profit ratio of the activity and activities. Also, the importance of assessing the tax risk of taxpayers with changes in the ratio of profit from activity to formulate an effective plan to reduce tax avoidance in the country's tax system should be considered. For this purpose, the data related to 950 taxpayers of natural persons with declarations of note 100 in the tax affairs of Tehran for the period 1400 to 1401 were extracted and the regression model of the combined data was used to test the research hypotheses. In this research, to determine the statistical sample of the method Screening has been used. The results of this research indicate that the changes in the tax code, which are made with the motivation of reduction, have a direct and significant relationship with tax avoidance. Also, there is a direct and significant relationship between the secondary tax code chosen by taxpayers and tax avoidance.
 

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Tax on capital gains is a crucial tool in tax policies, with significant importance and various necessities that impact the economy and society in different ways. Some of the significances and necessities of capital gains tax include providing tax revenues, regulating the role of taxes in income distribution, stimulating investment, controlling and regulating financial markets, ensuring tax justice, and balancing between taxation and investment. Therefore, paying attention to the importance of implementing capital gains tax as one of the essential tax foundations is essential. This research investigates the influential factors in the effective implementation of capital gains tax using the fuzzy cognitive mapping method. In this approach, experts familiar with the subject are initially identified through expert opinions. After theoretical saturation, a questionnaire in the form of a relationship matrix is created, with the number of rows and columns equal to the identified components. This matrix is then presented to the experts. Based on the given scores, the effectiveness and susceptibility of each factor are determined. Finally, a relationship map is presented based on the provided information.
 

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The purpose of this research is to investigate the relationship between the lack of transparency of operating cash flows and tax avoidance with an emphasis on agency costs. The studied sample includes companies admitted to the Tehran Stock Exchange (145 companies during the years 2015 to 2022). To compile the literature and the background of the research, the library method and the collection of research data from the financial statements of the companies and modern software and related sites have been used. Excel and EViews version 11 software have been used in order to perform calculations and prepare the data and information needed for the research as well as their analysis. In this research, the lack of transparency of operating cash flows are considered as independent variables, tax avoidance as dependent variables, and agency costs as adjustment variables; Also, the control variables of financial leverage, company life, asset growth, liquidity, fixed assets ratio have been considered. The results showed that there is a relationship between lack of transparency of operational cash flows and tax avoidance. Also, agency costs intensify the negative relationship between the lack of transparency of operating cash flows and tax avoidance.
 

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In this research, the driving forces of tax evasion in Iran have been compared using time series data from 1357 to 1400 from three different methods. One of these methods is the multiple-indicators-multiple-causes MIMIC approach based on structural equation model estimation. Another model is based on Tanzi's CDA and vector error correction model (VECM). The last one is based on a dynamic general equilibrium (DGE). Based on the calculation results, the driving forces of tax evasion obtained using the MIMIC show that the ratio of tax evasion to tax collection is 29% on average during the period under review. Also, according to the Tanzi's money demand model, the ratio of tax evasion to tax collection is 36% on average during the period under review. Based on the DGE, the ratio of tax evasion to tax collection is 34%. These findings emphasize the pressing need for comprehensive measures to address tax evasion and its detrimental impact on the economy. Without a clear understanding of the underground economy and accurate assessments of tax evasion, effective corrective measures and appropriate strategies cannot be implemented. Therefore, it is imperative for policymakers to utilize such estimations and findings to develop targeted interventions and policies aimed at curbing tax evasion and reinforcing tax structures in Iran. We find that the structural validity of the MIMIC for measuring trends in the shadow economy is nearly similar to the DGE and CDA. This similarity removes the skepticism that some previous literature had towards these methods.
 

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This research is to answer the question of how structural and cultural factors play a role in tax whistle-blowing by using the method of qualitative content analysis and triangulation of data collection. The research community of the tax organization was from 2014 to 2023 and 6 people were selected as interviewees with the purposeful sampling technique..The findings of the research showed that in the studied tax organization, despite the existence of structures to facilitate whistleblowing, the culture of not whistleblowing prevailed over whistleblowing. In more precise words, structural factors were completely overshadowed by cultural factors and even in many cases they became ineffective under the influence of cultural factors. The practical knowledge of this research for policy makers, managers and other administrative health enthusiasts is to pay more attention to the role of organizational culture and prioritize it over other factors affecting tax disclosure knowledge in the direction of organizational information transparency. Any success in the development of tax whistle-blowing disclosure knowledge depends on paying attention to the culture and cultural beliefs about whistle-blowing, and only structural arrangements cannot cause organizational whistle-blowing.

 

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In this paper, I deal with estimating Fars province taxable capacity through OLS regression model and making use of time series data of a period of 21 years. Among the most important variables affecting the province tax levels and taxable taxes in respect of total taxes, tax on business, and corporate tax during the years 1983-2003, I have mentioned such variables as values of incomes and exports, value added of industry sector, value of exports, and the province total revenues. The findings show that there are tax gaps in all three kinds of taxes mentioned above due to the existence of potential capacities in the sectors thereof. Tax effort index during the intended period has been less than unit but it has gradually improved in recent years. As the tax elasticity is lower than one, it can be concluded that the tax system has relatively been inefficient in the early years of the period under investigation though in recent years, the tax performance has relatively been raised.

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One of the essential functions of governments in all economies is to satisfy the prerequisites of achieving economic equality and to fairly distribute the acquired incomes. Taxes are considered as one of policy-making instruments to be used for achieving these goals. An exploration of changes in the welfare conditions of people during certain periods of time would make it possible to analyze the outcomes of economic policies adopted throughout those periods. The present research has been devoted to an investigation of the impacts of taxes on the income distribution during the period 1974-2005. To do the task, I have firstly explained the factors affecting the inequalities and the conditions of income distribution during the intended period and then, through making use of econometrical techniques and OLS model, I have studied the impacts of taxes on the income distribution index (Gini coefficient). Research findings indicate that an increase in the Tax/GDP ratio as well as a decrease in the rates of direct taxes (in comparison with the rates of indirect taxes), results in the raising of the Gini coefficient.

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Exploring the differences between impacts of Islamic taxes / ordinary taxes on investment requires recognition of their properties and their differences. The paper shows, through mentioning kinds of Islamic government financial resources and the characteristics of each one, that firstly, the low rate of Islamic taxes, their stability, and their payments being considered as an act of worship, all and all prevent the problem of inefficiency secondly, the impacts of Khoms on the investment differ from the impacts of Zakah thirdly, some taxes such as tax on consumption or salary are not taken into account within the discussion of Islamic taxes and fourthly, the impacts of governmental taxes within Islamic environment may theoretically be similar to those of ordinary taxes. The paper has eventually explored the impacts of Islamic taxes on the investment and has showed that they have supported investments in various ways.

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  Tax effort shows the percentage of nominal tax revenues being realized. In other words, the difference between the nominal and the realized tax bases indicates the tax effort and if the nominal tax base equals the realized, then we can say that a full tax effort has occurred. Both the economic literature and the empirical studies have considered the tax to national income ratio as the tax effort. Variables determining tax effort are classified into two categories (Bird, 2002): First, supply-side variables which are being used in most traditional studies including such variables as per capita income, share of value added of the agriculture sector, inflation, openness of the economy, and the extent to which tax collection authorities make efforts. Second, demand-side variables which explain the roles of social institutions and emphasize on the citizens' inherent motives and people's attitudes towards making use of benefits of paying taxes. The most important demand-side variables are tax morality, shadow economy, tax evasion and income distribution inequalities. In this paper, two methods have been used to study tax effort. The first is the econometrics method which has been used in most domestic and foreign studies. In this method, a part of demand-side variables such as per capita income, share of value added of the agriculture sector, inflation, and population growth is taken into account and after estimating the model, the tax effort exerted is measured in respect to taxes on consumption, wealth, business income, and corporate income both in the whole country and in the seven provinces of Tehran, Guilan, East Azerbaijan, Khorassan, Isfahan, Khouzestan, and Fars. But as for the second method, namely, the "system dynamics approach", the preliminaries of designing a model have been mentioned and the advantages thereof have been described. This method resolves the shortcomings of econometrical models and is able to make use of most of supply-side and demand-side variables and as such, it can eventually be used in forecasting tax revenues.

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Tax revenues are one the most important resources of the government incomes and, therefore, the issue of how to provide tax resources in order to achieve the required government income is of great significance. The Iranian tax system is not as efficient as it must be in spite of the fact that it has a long history as a governmental organization. So, doing reforms in the state fiscal structure is among the most important issues within the economic plans and policies. One of the fundamentals of the Islamic Republic of Iran's Third Economic, Social and Cultural Development Plan has been devoted to reforms in the state tax system which led to the establishment of the Iranian National Tax Administration (INTA) in the year 2001. Subsequently, by virtue of the article 272 of the Iranian Direct Taxes Act, making use of services provided by certified public accountants and by members of Iranian Association of Certified Public Accountants (IACPA) for tax audit purposes was again revived. On the other hand, due to changes in money values in different times on the basis of changes in the general levels of prices, tax lags will result in a decrease of real government revenues and as such, it seems necessary to discuss about how to collect taxes in due time. The present research aims at studying the impacts of tax audits by IACPA members on tax lags through making a comparison between tax performances of the corporations using IACPA services prior and after the implementation of the article 272. Research findings indicate that the implementation of the above-mentioned article has resulted in an increase of legal tax lags in the statistical population under study.

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One of the financial duties referred to as 'vajeb' in Islamic instructions, is called as 'Khoms' which literally means 'a fifth of one's annual net income' to be paid for charity purposes. The verse 41 of Al-Anfal chapter of the Holy Quran has necessitated payment of Khoms and the cases it is to be consumed for. According to Shia Imams, Khoms is generally imposed on seven categories one of which is called as 'Arbah-e Makaseb Khoms' which is particularly dynamic and due to its rate and the circumstances under which it is levied, it seems to have the nature of so-called ordinary taxes in spite of some differences. Having in mind the cases where Khoms is to be consumed, it is obvious that the distributional goals have been among the most important objectives of its imposition. Khoms may have the least contrast to the principle of efficiency due to its domain of inclusion covering all kinds of income and its rate stability. According to what was said, in this paper, I have firstly mentioned the circumstanced under which Khoms is levied and the cases where individuals are exempted from paying it, and secondly, I have specified the domain of these two topics. Then, on the basis of viewpoints of some jurisconsults who have classified Khoms as one of the Islamic government's incomes and from a taxation standpoint, I have mentioned different methods of estimating it in the country. After that, regarding the economic information available about Arbah-e Makaseb Khoms and the variables and the parameters thereof, I have introduced Pareto's Two-side Distribution Method in order to estimate amounts of this Islamic tax category among the society's different income classes and I have measured its potential amounts for the years under investigation on the basis of available statistics. In the end, I have compared Gini coefficient- as an index of distribution- prior and after paying Khoms.

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Being aware of the determinants of tax capacity and the potential ability of the country to make use of this capacity is the key for any plans to increase tax revenues. In this article, a new specific definition of economic capacity of taxation has been given and on the basis of the information gathered from 20 different countries within the period 1998-2006, the Iranian potential economic capacity of taxation has been estimated within the framework of panel data model. The results of the study show that the average economic capacity of taxes in Iran (excluding social security contributions) has been about 12.33 percent during the period in question. Therefore, it can be concluded that the actual performance of the country (7.1 percent) during the mentioned period has been quite low. In addition, the results of the study show that the tax effort index in Iran has been about 58 percent during the period under study.

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Organizations and administrations need appropriate indexes with high evaluation powers for controlling and assessing their performances. They also need proper methods to evaluate these indexes correctly and to verify the precession of these evaluations in order to control their subordinate divisions and to motivate a competitive environment towards their objectives. This article applies a method for evaluating and ranking the performances of tax affair offices in terms of indexes extracted on the basis of the Balanced Scorecard (BSC) method within four categories (Learning and Growth Index, Inside Process Index, Beneficiaries Index/Taxpayers Improvement Index, and Income Index). These indexes are considered independently by making use of Principle Component Analysis (PCA) method and are clustered together through Cluster Analysis Method. Finally, they are prioritized and ranked using Analytical Hierarchy Process (AHP) method in respect to preferences regarding different tax resources.

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Taxes are one of the main components of the government budgetand as such, having a clear image of the attainable amount of taxes is not only necessary for optimal allocation of scare resources for tax collection purposes, but also helps the government to develop more precise tax collection plans. In this article, the structural features of tax revenues series have first been examined in terms of linearity, chaotic nonlinearity and stochasticity using Lyapunov Exponent. These series are: total taxes, direct taxes, indirect taxes, corporate taxes, income taxes, salary taxes, real estates taxes, business taxes, wealth taxes, inheritance taxes and goods & services taxes. The results endorse the existence of chaos in the series of different tax resources in different extents. Therefore, based on the results obtained, it was found that more accurate short-term forecasts are possible by applying nonlinear modeling methods. In the next step, using data of the period 1963- 2006, tax revenues of different resources were forecasted for the period 2007-2009 by applying both parallel and proposed multipleinput multiple-output structures of the ANN’s.

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In this research, the effect of a raise in the price of energy on the major macroeconomic variables was examined within a structural macroeconometric model. The model consists of two groups of equations: One group involves long-term equilibrium relations and the other involves short-term dynamic relations which show how the variables adjust according to long-term equilibrium values. Coefficients of the model were estimated within the co-integration method. Time series data for the years 1959-2004 and the real prices of 1995 were used to estimate the coefficients. Tale inequality and square root of the mean of relative error squares were used in order to estimate the fitness degree of tracing the trend of endogenous variables. In order to examine the effect of a rise in the price of energy, the exogenous variables data were firstly produced by means of ARIMA prediction method (in some cases, with regard to average annual growth rate of the variable in question during previous time series). Then, through changing the prices of energy in 2008, the effect of these changes upon endogenous variables of the model including inflation rate, growth rate, unemployment rate, government expenditures and tax revenues for 2007-2011 were estimated within two scenarios, the gradual and the impulsive effects. The model exhibited the effects of any energy price rising policies. Any deviation from the trend of the model's endogenous variables is interpreted as the effect that this kind of policy has on these variables.

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This research has been aimed at identifying the factors involved in the differences between declared and final taxable incomes of legal entities. The statistical population of the study consists of legal entities that have been audited during the period 2004-2005 in Hamedan township. The selected sample included 366 companies for which the significance of the differences between the declared and final taxable incomes was tested. The results show that there has been a significant difference between the two mentioned taxable incomes. The most important factor was “taxpayers’ failure to observe the Statutory Books Drawing Up By-law”. Moreover, the most important factors involved in the rejection of the statutory books are “to non-registration of one or more financial activities” (42.58%) and “the delay in sealing their books” (28.5%). In addition, in cases where the accounting books are accepted, the most important undetectable cost has been “the lack of evidence for proving the cost in question” (32%). “The discrepancy between accounting standards and tax regulations” make no significant differences in these cases.

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One of the most important concerns of managers of organizations is to assess and determine the satisfaction degree of their costumers. The main purpose of this paper is to identify the major factors influencing taxpayers’ degree of satisfaction and loyalty as well as to review the existing models of costumer satisfaction. To do the task, 22 effective factors were identified through reviewing the research literature, the Direct Taxes Act and the by-laws thereof as well as the 3rd Development Plan and some other related resources. A questionnaire was developed to be filled by experts. The results of a factor analysis showed that there were five groups of factors involved in assessing the taxpayers’ degree of satisfaction including the staff, expectations, communications, regulations, and culture. The extracted model was confirmed by the factor analysis and was finally evaluated by the data gathered through questionnaires filled by LTU taxpayers.

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The scope and diversity of government activities to achieve economic targets have led to a condition where taxes are now paid more attention and are considered to function as an important economic instrument. The governments can utilize this instrument to finance some part of their expenditures, but due to the Iran's economy’s dependence on oil revenues, tax revenues form only a small fraction of the Iranian government revenues. The present research aims at examining the effect of tax revenues growth on such macroeconomic indicators as inflation and real economic growth. The role of oil revenues is also paid attention. This research, as a case study, uses simultaneous equations system to examine the Iranian data of the years 1959-2007. A two-stage least square method was used to estimate the equations. The final form of the model consists of four equations including inflation rate, real economic growth rate, real growth rate of the government revenues and real growth rate of investment equations. Results show that real growth rate of the government tax revenues doesn't have any significant effects on real growth rate of economy but it has significant negative effects on the inflation rate.

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In this paper, theoretical and methodological issues of tax on businesses are firstly studied and then, four cases of goldsmiths, pharmacies, contractors, and consulting engineers have been selected for doing a field study work. Statistical tests have been done on the basis of data gathered from researcher-made questionnaires. The researcher has tried to focus on methods of estimating shares of human and physical capitals in the business fields in question. These estimations have finally been used for classifying tax coefficients of the intended professions.