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An Estimation of Tax Evasion in Iran

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  • Saeed Karimi Petanlar
  • Ahmad Jafari Samimi
  • Alireza Aminkhaki

Abstract

The aim of this research is to estimate the size of tax evasion between 1971 and 2007 in Iran. Among the present direct and indirect approaches, the indirect approach presented by Tanzi based on currency demand, is used to estimate the size of the underground economy, then taking the effective tax rate into consideration, the amount of the underground economy taxes. Our results show that the size of the underground economy is increasing in a long-term trend and also the ratio of the underground economy to gross domestic product has increased during the period under consideration. Our findings also indicate that tax evasion has markedly increased during the period. Therefore, policies to alleviate the tax evasion in the country should be implemented by policy makers.

Suggested Citation

  • Saeed Karimi Petanlar & Ahmad Jafari Samimi & Alireza Aminkhaki, 2011. "An Estimation of Tax Evasion in Iran," Journal of Economics and Behavioral Studies, AMH International, vol. 3(1), pages 8-12.
    • Handle: RePEc:rnd:arjebs:v:3:y:2011:i:1:p:8-12
    DOI: 10.22610/jebs.v3i1.250
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    References listed on IDEAS

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    2. Friedrich Schneider, 2005. "Shadow Economies of 145 Countries all over the World: What Do We Really Know?," CREMA Working Paper Series 2005-13, Center for Research in Economics, Management and the Arts (CREMA).
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    4. Klovland, Jan Tore, 1984. " Tax Evasion and the Demand for Currency in Norway and Sweden. Is There a Hidden Relationship?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 86(4), pages 423-439.
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    6. Friedrich Schneider, 2000. "The Increase of the Size of the Shadow Economy of 18 OECD Countries: Some Preliminary Explanations," CESifo Working Paper Series 306, CESifo.
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    1. Anastasiou Athanasios & Kalamara Eleni & Kalligosfyris Charalampos, 2020. "Estimation of the size of tax evasion in Greece," Bulletin of Applied Economics, Risk Market Journals, vol. 7(2), pages 97-107.

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