Evaluating the contribution of tax justice to the tax gap of Iranian Stock Market companies (2011-2023)

Articles in Press

Document Type : Research Article

Authors

1 university razi-kermanshah-iran

2 Assistant Professor of Economic, Birjand University, Birjand, Iran

10.22084/aes.2025.30951.3792

Abstract

One of the most important goals of the system's general policies is to achieve higher tax revenues by establishing tax justice. In such a system, due to the attention to the two components of taxpayers' willingness and ability to pay, the stability and dynamics of tax revenues increase. This study by using the statistics from 113 Iranian Stock Market companies, and applying the decomposition Model to divide to group iof tax payer into two groups of industries with higher and lowers relative taxes over 2011-2023, and uses decomposition models to examine the contribution of tax justice to the tax gap. The results of the estimates show that profitability and company size cause a decrease and an increase in effective tax, respectively. However, the results of the Oaxaca-Blinder decomposition show that the contribution of tax justice to the tax gap in 2023 was 94 percent and in 2015 was 64 percent. Also, the results of Machado-Mata analysis show that in the lower 4 tax quantiles, the share of tax justice is 14 percent and in the top 4 tax quantiles, this share is 76 percent. Therefore, the use of strong and reliable tax collection tools in companies with lower tax payments despite having high profitability is the most important task of the Tax Affairs Organization. In this regard, the creation and development of a comprehensive financial information system for companies and the need to review tax amnesty are the most important policies to improve the share of tax justice in the tax gap.

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Journal of Applied Economics Studies in Iran

Articles in Press, Accepted Manuscript
Available Online from 16 September 2025

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