per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
11
42
article
The Relationship between Economic Structural Changes and Tax Structure Changes: Lessons to Tax Policy- making
Rezaei Ebrahim
Ebrahim.rezaei@gmail.com
1
Based on theoretical points, structural changes are able to affect macroeconomic variables such as public finance variables significantly, and simultaneously take effect from those variables. This hypothesis is probably not true among all economies, necessarily. Therefore, this paper using Granger causality test investigates the relationship between economic structural changes and tax composition changes among several countries, which grouped based on level of their income. The results show that, there was one way causality between above variables during 1980-2013 and in the context of all stages of structural changes, either based on employment index (Lilien Index) or value added index (Stoikov Index), it was just one way causality effect from structural changes on tax composition changes index and opposite line wasn't true. Although, the effect of employment index has not seen immediately but after some lags, its effect reveals. The findings have considerable implications on tax policy making in Iran's economy.
http://taxjournal.ir/article-1-1321-en.pdf
Tax Policy- making
Structural Changes
Tax Structure Changes
Causality Test
Heterogeneous Panel Data Models
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
43
80
article
Analyzing the Performance, Collection Efficiency and Implementation Challenges of Value Added Tax in Iran
Izadkhasti Hojjat
h_ izadkhasti@sbu.ac.ir
1
The widespread and consumable nature of the tax base, the low cost of identifying, collecting and transferring tax burden to the final consumers in the economy are the properties of the Value Added Tax, whose full implementation will increase the efficiency of the collection. The Value Added Tax Law with all its benefits includes economic transparency, tax base expansion, investment and production encouragement has faced challenges in the field of implementation. Accordingly in this paper we analyze the performance, efficiency of collection and implementation challenges of the Value Added Tax law during its experimental period in Iran. The VAT revenue Performance indicates that from its implementation until the end of 2016, the total value added tax revenue and tariffs were equal to 167 trillion Tomans. Using the Mc Kenzie method (1991) and input-output table, the potential tax base for the value added tax is estimated at 404 trillion tomans. Also, the results indicate that standard rates, exemptions, tax thresholds, procedures, and tax laws have affected the performance and efficiency of VAT collection. Finally, the efficiency of collecting value added tax in the consumption method, with the inclusion of exemptions and adjustments required in the Value Added Tax law is calculated at 55%.
http://taxjournal.ir/article-1-1322-en.pdf
Tax System Reform
Value Added Tax
Tax System Management
Tax Credit
Efficiency of Tax Collection
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
81
106
article
Analyzing Legal Nature of Tax Litigation under Article 251 bis of the Direct Tax Law
Rostami Vali
vrostami@ut.ac.ir
1
Pourrezai Fashkhamie mahmoud
pourrezai.mahmoud@ut.ac.ir
2
The Article 251 bis of the Direct Tax Law provides the possibility of lodging a claim about the unfair tax before the Minister of Economic Affairs and Finance, as the supreme authority in the administrative hierarchy on one hand, and authorize the Minister to proceed any tax case in an exceptional and extraordinary procedure, on the other hand. However, the provision was codified in an abstract form and consists of less than one hundred words; even the legislator hasn’t obliged the executive power to formulate a regulation on this matter. This ambiguity reveals the need for an analysis of the legal nature of the existing mechanism in Article 251 bis. In this regard, due to the conceptual ambiguity of the unfair tax, the explanation of the probabilistic examples that leads to such situation becomes paramount importance, which has been given special attention in this paper. Also, the jurisdiction that the legislator considers for the Minister in accepting or refusing taxpayers’ litigation and criticizes the case law in this regard is another central issue of this research.
http://taxjournal.ir/article-1-1323-en.pdf
Tax litigation
Tax Trial
Unfair Tax
Minister of Economic Affairs
Article 251 bis
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
107
134
article
Prioritizing the Strategies to Increase Tax Revenues by using Fuzzy DEMATEL
1
zohreh Torkashvand
z.torkashvand@gmail.com
2
Mahmoud Alborzi
mahmood_alborzi@yahoo.com
3
Askari Ali
askari_azadwar@yahoo.com
4
The structure and components of government revenues are of great importance in the public-sector economy. In the present study, the main purpose is to provide a model for prioritizing the strategies to increase tax revenues. In order to identify the variables affecting tax revenue, Delphi method is employed with reference to the related review of literature. This research, as the objective reveals, is an applied one, conducted via descriptive-survey method; in addition, the effect of each factor on the others is investigated through Fuzzy DEMATEL approach. The obtained results show that the most influential solutions to increase tax revenues are e-Tax, VAT and VAT on petroleum products, human resources development, capital gain tax in housing sectors, aggregated tax, aggregated business tax and also tax exemptions, social welfare, etc. Using modern systems and electronic tools can significantly reduce or sometimes prevent the development of tax evasion and underground economy.
http://taxjournal.ir/article-1-1324-en.pdf
Tax Revenue
Reforming Tax System
Fuzzy DEMATEL Method
Trapezoidal Fuzzy Numbers
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
135
148
article
The Effect of Price (Tax) Policies on Smoking Consumption
Sahabi Bahram
bsahabi56@gmail.com
1
Hasani Mohsen
mohsen83021@chmail.ir
2
Faraji Dizaji Sajjad
faraji.sajjad@gmail.com
3
Abdoli Ghaharaman
abdoli@ut.ac.ir
4
Tobacco use imposes health and economic costs both on individuals and society, so it is essential to anticipate plans to control its consumption, by using price policies through tax tools. But in the case of tobacco addiction, there are doubts about the impact of these policies. Therefore, it is necessary to examine the effects of pricing and tax policies by estimating the demand function of smoking and its elasticity. The almost ideal demand system (AIDS) model which is the most effective models is used in this article. The required data were also extracted from cost and income data of the Iranian urban households during the years 2001-2014. Based on the results of estimates, tobacco is a low elasticity good and therefore using taxes doesn’t have much effect on smoking.
http://taxjournal.ir/article-1-1325-en.pdf
Smoking
Price Policies
the Almost Ideal Demand System
Urban Households
Income Deciles
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
149
176
article
Estimating the Policy Gap and the Compliance Gap in Iran\'s Value-added Tax System and the Need to Extract a Rational Framework for Granting Exemptions
sobhanian hadi
hadi.sobhanian@gmail.com
1
Mohajeri parisa
parisa_m2369@yahoo.com
2
Granting exemptions in the value -added tax system, in addition to increasing the cost of compliance, increasing administrative costs, disrupting the selection of inputs for the benefit of imported intermediary inputs, vertical integration and strengthening the self supply, will also result in significant loss of tax revenues. In this paper, the policy gap and compliance gap resulting from the granting of exemptions in the value added tax system has been calculated using the Input-Output Tables (156 * 156 in size) and the national accounts of the country between 1388 and 1395.
The results of the calculations indicate that during the pilot implementation of the value added tax, about 260,000 billion Toman have been lost in tax revenue. The government's share of this tax loss was 157,000 billion Toman. The share of municipalities has been over 103,000 billion Toman, which is more than 2.3 times the total amount of funds transferred to the accounts during the enforcement of the law.
According to the findings, the present paper contains two policy messages: Firstly, in the process of reviewing the value added tax bill, the expansion of a circle of exemptions should be strictly avoided. And secondly, the exemptions that have no scientific logic and are not observed in other countries are removed if possible.
http://taxjournal.ir/article-1-1326-en.pdf
Policy Gap
Compliance Gap
Value- added Tax
Tax Exemption
Input-Output Table
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
177
210
article
The Effect of Financial and Monetary Shocks on the Iranian Taxation System along with Determining Optimal Tax Rates of Consumption, Salary and Wages (General Equilibrium Approach using Genetic Algorithm)
maddah majid
majid.maddah@semnan.ac.ir
1
samiei neda
nedasamiei@gmail.com
2
Tax is one of the financial policy tools in regulating various economic activities to achieve economic balance and to establish social justice. Tax policies can not only help to provide financial resources for government, but also contribute to economic development and growth. Government can use appropriate tax policies and an optimized combination of direct and indirect taxes to accomplish successfully optimized resource assignment, redistribution of income and social justice. So, tax revenues affect the efficiency of financial policies implementation. One of the factors affecting government performance in receiving tax revenues is rent-seeking opportunities through which the possibility of tax payment lags may occur. This paper tries to extract the optimized tax rate in the context of rent-seeking economy in terms of a public balance system and intelligent optimization methods (Genetic algorithm). The results of optimization of described models indicated that in the context of rent-seeking in government tax revenues, tax on consumption is more than optimized level and conversely, tax on wage and payment is lower than optimized level. These findings indicate that the possibility of rent-seeking on wage tax is more than consumption tax due to implementation complexity and its reception. Meanwhile, rent-seeking in consumption tax is lower than another due to transparency and a single rate.
http://taxjournal.ir/article-1-1327-en.pdf
Optimal Tax Rate
Rent -seeking
General Equilibrium
Economic shocks
Genetic Algorithm
Iran
per
Iranian National Tax Administration (INTA)
Journal of Tax Research
2251-6484
2717-1817
2019-03
25
36
211
249
article
Understanding Tax Policy-making Process in Iran: Factors Affecting Tax Agenda setting Process at the National Level and its Actors
Mirzamani A’zam
mirzaman@alumni.ut.ac.ir
1
Akhavan A’lavi Sayyad Hossein
akhavan_alavi@ut.ac.ir
2
Alinaghi Amiri
anamiri@ut.ac.ir
3
Esmaeeli Hossein
h_esmaeili@ut.ac.ir
4
Understanding public policy- making process and realities perception in this process can help in finding challenges and weak points, and suggest some solutions to improve it. The most important and crucial stage of the public policy process is its initial stage, agenda setting. A problem that enters the limited list of the governmental agenda and the government intends to take action to resolve it, determines which individuals and groups will benefit. In tax policies, due to greater importance and sensitivity than other policies, there are conflicts and competitions in which problem should attract policy- makers’ attention. At present, existing studies on the process of agenda setting in Iran is inadequate and further research is needed to provide a better understanding of this process. Therefore, this study aims to identify the factors affecting the tax agenda setting process in Iran and to identify its actors, using the qualitative approach and the classic grounded theory strategy. To do this, the primary data obtained from interviews with tax policy-makers and individuals close to them and secondary data was used to improve the analysis. Then, by analytical methods of classic grounded theory, the concepts that are factors affecting the process of agenda setting process are extracted. These factors were categorized into three groups: factors related to the problem, political factors and factors related to the policy. The findings include 7 factors and 11 sub-factors related to the problem, 4 political factors and 11 political sub-factors, and 7 factors and 12 sub-factors related to the policy that affect tax agenda setting process. At the end, the most effective actors in the process are also introduced.
http://taxjournal.ir/article-1-1328-en.pdf
Agenda Setting
Public Policy-making Process
Tax Policy-making
Policy Agenda
Grounded Theory (GT)