TAX is taken into consideration as one of the important factors which playsrole in economic prosperity and societies' development through gaining revenue for governments. Iran's economy has been in INFLATIONARY recession condition for years but legal authorities don't pay attention to alter expense figures appeared in Companies financial statements, Whereas, revenue figures recognized carry inflation effect. Therefore, this situation imposes more TAX burden on Companies especially ones Utilizing more various forms of long term assets in their Assets structure. This study investigates the relationship between TAX policy and Companies TAX burden in INFLATIONARY conditions. Inventory and PPE level are used to measure TAX Policy effects as independent variables. The ratio of TAX expense to CFO is applied as a measure for TAX burden. The data of Companies listed on TSE during 2002 to 2017 in regard to some consideration, are analyzed using GLS method (Unbalanced Panel). Results show that in INFLATIONARY conditions, TAX burden is increased when Companies acquire more PPE and inventories in the past years. In addition, lower inventory turnover strengths the inflation effect on inventory which cause higher TAX for Companies.

In this paper, to evaluate INCOME and distributional effects of Personal INCOME TAX, a hypothetical society is simulated.12 INCOME sources are defined that each member of society can earn INCOME from one INCOME source or more. Then, using FORTRAN programming, the government's TAX INCOME, INCOME distribution and average TAX rate are calculated, assuming five alternative Scenarios: 0. Base scenario: TAXing personal INCOME at source according to "Direct INCOME TAXes Act"; 1. TAXing the sum of INCOMEs each individual person earns from different businesses he or she owns and exempt his / her business INCOME once; 2. TAXing the sum of INCOMEs each person earns from non-exempt sources and exempt his / her business INCOME once; 3. TAXing the sum of INCOMEs each person earns from exempt and non-exempt sources and exempt his / her business INCOME once; 4. qualifying third scenario by accepting a 1 billion Rials as exemption. Results of simulation indicate that the government's INCOME and INCOME equality is maximized in 3rd scenario.

In this paper, optimal TAX rates for real and legal entity INCOME TAXes have been estimated. Optimal TAXation means optimal maximization of total utility functions of entities with regard to the budget constraint and a constraint wherein the entities make their choices of labor supply taking into consideration the relationship between labor and INCOME. The foundation of our estimation has been Diamond’s model (1998) which is itself an extended form of Diamond and Myrrless’s model (1971). This model is, in its turn, an adaptation of Saez’s model, an important optimal TAXation model. The statistic population being used for the calculation includes real entities in Tehran and legal entities in Tehran and Kermanshah cities. In order to cover the fairness of INCOME distribution, the statistical data has been classified in terms of INCOME deciles, and Gini coefficient was calculated as an indicator of INCOME distribution variance. Then, an appropriate model which is assumed to have the best impact on the decrease of the Gini coefficient has been selected. Finally, through the application of the selected model and taking into account different levels labor force elasticity (for real entities) and services supply elasticity (for legal entities), the optimal TAX rates have been calculated. The results obtained indicate that in the Iranian TAX system, the application of new rates would lead to a better distribution of INCOME as well as an increase of 150% in the government TAX revenues. Moreover, the calculated rates are able to be interpreted on the basis of an extended formulation of Laffer’s curve.

INCOME TAX and Labour supply is an important part in public sector Economics. INCOME TAX affects labour supply which in turn affects the national INCOME. Economic theory cannot predict the effect of TAX on Labour supply, because are in opposite directions. This research is concerned with the effect substitution and INCOME effects of TAXation on labour supply by an econometric study of cross-sectional data. It is assumed that the effect of TAXation is to alter budget constraints. Because different individuals have different gross wage rates and different amounts of other INCOME, they have different budget constraints. If difference in preferences are adequately controlled for, it is possible to derive labour supply estimates from the cross-sectional data which can then be used as basis for estimating the effect of TAXation. In this study we show that the effects of net wage rate on labour supply is significant, that non wage INCOME is not significant. We finally recommend a policy for TAX refoRm by changing the marginal TAX rate.

The agriculture is one of the most strategic sectors of Iran economy and it is important for several aspects. The growth of this sector is counted as the primary and basic aims of politicians. The current study, investigates INFLATIONARY TAX impacts on growth of Iran agriculture sector. The Solo growth model was used, in which growth is a function of labor, capital stock and INFLATIONARY TAXes. In order to estimate the short run and long run relations ARDL model was used. The results showed that there is a direct relation between capital stock with growth of agriculture sector in the short run and long run. In addition, the effect of labor force and INFLATIONARY TAX on the growth of agriculture sector is negative in short and long run.

The Role of TAXes in reduction of economic inequalities, has been a controversial subject in recent decades. Destructive effects of progressive TAXes on efficiency and problems of TAX compliance, have been considered in TAX reform programs worldwide. Introduction of an Islamic INCOME TAX system, with all its progressive features, and its popularity seems to be effective in correcting the distributive outcomes of existing INCOME TAX system, We have compared the distributive effects of two systems, in this article, and appraised the Khoms, as a major INCOME TAX in Isalm, to replace the corresponding INCOME TAXes, Distributive effects of two systems, were estimated by current TAX incidence approach under four TAX shifting assumptions, Suits index of progressivity, indicates that the proposed replacement in general, improves INCOME distribution. Our estimations indicate that TAX burden of Khoms is lower than that of similar TAXes. In sum, the Khoms system, improves the index of vertical equity, leading to a lesser degree of distortion in economic efficiency.

INCOME TAX does have allocative and distributive roles in economy. So, one of the key roles of INCOME TAX is distributive. The major principle of this type of TAX is "justice principle". This paper uses a modified version of the Engel, Galetovic and Raddatz model to examine the effects of salary TAX on the INCOME distribution in Iran.The findings of the paper confirm that the optimal TAX rates in Iran are 25.18, 28.28, 12.5, 12.5, 12.5 percent, respectively, over the period of the third five-year development plan. Comparing the actual TAX rates with the optimal ones, it is observed that there exists a significant gap between potential and actual TAX rates in the country.

Conservatism and TAX avoidance are among firm's policies that can be considered as TAX incentives. Evidence suggests that conservatism is a common and accepted tool for reducing the TAX INCOME. By accepting and noticing this matter, some questions arise: which strategies are used by listed companies in Tehran Stock Exchange to reduce their TAX INCOME, And under circumstances that companies can reduce their TAX INCOME by using conservative accounting would their prefer to use another strategy for TAX avoidance or not? This study examines the influence of TAX INCOME and Conservatism on TAX avoidance. Findings of investigation of 146 firms (1177 firm-years) listed in Tehran Stock Exchange in the 2002 to 2012 by unbalanced Panel model and OLS, suggest by 95% confidence level that relation between TAX INCOME and the Conservatism is negative and significant. This indicates that TAX avoidance and conservatism is mutually exclusive instruments for TAX reduction, so that conservatism is reduced by increasing the incentives for TAX avoidance and vice versa. In addition, the negative relationship between average TAX expression of three years and TAX avoidance indicates that firms tend to be conservative and decline the profit for TAX savings, rather than reduce their TAX by TAX avoidance.

The government of Iran has faced with budget deficits during 1979 – 2010, which has been financed mainly through money creation. Theoretically, the impacts of budget deficit and INFLATIONARY TAX on macroeconomy are very controversial, so that both decrease and increase in consumption, investment, net exports and total expenditure have been supported by empirical researches. Using structural cointegrating vector autoregressive, this paper investigates the impacts of INFLATIONARY finance on the demand side of Iran’s economy during mentioned period. Budget deficit is defined as the difference between operating budget deficit (minus net operating balance) and capital balance surplus, or net lending (net acquisition of nonfinancial assets). The results show that both operating budget deficit and net lending have positive impacts on consumption, investment and net imports in the short run. So changes in the demand side have not necessarily same orientation with increase or decrease in budget deficits, but the source of change in budget deficit determines its effects. Reducing budget deficits through positive shock to net lending and a policy of increasing operating budget deficit have similar effects. Furthermore, the results show that the operating budget deficit has no effect on demand components in the long run. The complementarity of INFLATIONARY TAX and financial repression is confirmed in both short run and long run. In addition, the results indicate that an increase in operating budget deficit and/or net lending induce more INFLATIONARY TAX and financial repression. Although the budget deficit has no effect on demand side in the long run, but its two outcomes -INFLATIONARY TAX and financial repression- have opposite effects on the consumption, investment and net imports in both short run and long run.