Omid Ali Parsa, Mehrdad Mehrkam, Fatemeh Hesni Moghadam,
Volume 28, Issue 48 (2-2021)
Abstract
In this research, governments must always respond to the public at different times and places in order to meet basic needs and demands, such as job creation, national security, price stabilization, etc. The government, as one of the key beneficiaries of corporations, relies on tax returns that are filed and submitted by taxpayers to determine tax rates. In spite of the government's reliance on the declarations of taxpayers, the tax expressed is not the same as the tax deducted in most cases. The research data were analyzed by using a sample of 120 companies listed in Tehran Stock Exchange during the years 2011-2017 using multivariate regression and multivariate regression models. The results of the study showed that economic sanctions increase the tax gap and reduce tax revenues. Also, political communications also increase the tax gap and decrease tax revenues. Under economic sanctions, companies are turning to the underground economy in order to escape tax evasion and keep cash in the company.
