Tax avoidance and estimating the share of tax justice in the tax gap of Iranian Stock Market Company

Articles in Press

Document Type : Extracted from a Doctoral Dissertation

Authors

1 Ph.D. Candidate in Economic, Department of Economic, Faculty of Economics and Accounting, Razi University, Kermanshah, Iran.

2 Associate Professor, Department of Economic, Faculty of Economics and Accounting, Razi University, Kermanshah, Iran.

10.22034/jepr.2025.143685.1264

Abstract

the sustainability of tax revenues in any country depends on the implementation of tax justice components, so that there is a proportion between the tax paid and the enjoyment of the desired status resulting from the cost of tax revenues. In this regard, this study, using statistics evidance from 113 Iranian Stock Market companies over 2011-2023 and applying the quantile regression approach and decomposition models, examines the determinants of effective tax and measures the share of tax justice in the tax gap. The results of the estimates show that profitability and the share of intangible assets have caused a decrease in effective tax and liquidity, financial leverage and current debt ratio have caused an increase in effective tax. In addition, the decomposition models show that approximately 54 percent of the tax gap can be explained by tax justice and the share of tax justice in the low tax quantiles over 2019-2023 is equal to 41 percent and in the high tax quantiles is equal to 68 percent. the creation and development of a comprehensive financial information system for companies a is the most important policy for improving the contribution of tax equity to the tax gap

Keywords

Main Subjects

Economic Policies and Research

Articles in Press, Accepted Manuscript
Available Online from 24 August 2025

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History

  • Receive Date: 13 May 2025
  • Revise Date: 23 August 2025
  • Accept Date: 24 August 2025
  • Publish Date: 24 August 2025

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