Assessing the Impact of Public Sector Policies on Tax Evasion in Iran and Selected Countries

Objective: Governments need financial resources to play their role in the economy and to produce and supply public goods. One of the most efficient sources of finance in the public sector economy is taxation. Taxes are doubly important in developing countries, which are always short of physical and economic infrastructure. However, government revenue sources or the share of taxes in total public revenues vary from country to country, depending on their level of development and economic structure. But tax evasion is seen as a sharp drop in government revenue that discourages the government from providing current public services due to a reduction in government revenue from public revenue.Tax evasion refers to any illegal attempt to evade taxes. Numerous factors affect tax evasion. One of the most important factors is public sector policies. Therefore, in this study, using the data panel regression method, the effect of public sector policies on tax evasion in Iran and selected emerging countries in the period 2000-2020 has been studied.Governments need financial resources to play their role in the economy and to produce and supply public goods.Governments need financial resources to play their role in the economy and in the production and supply of public goods. One of the most efficient sources of finance in the public sector economy is taxation. one of the most effective sources of finance in a public sector economy is taxation. Method: In this study, the effect of public sector policies on tax evasion in Iran and in selected emerging countries in the period 2000 to 2020 has been studied. The conceptual model of the research is as follows, in which tax evasion depends on variables related to government (rule of law, open markets, size of government and quality of legislation), tax modi (religious beliefs) and tax organization (public sector governance). Thus, in this study, the regression model of research has been used by modifying the model of Islam et al (2020) and considering the effect of the degree of development of countries on tax evasion. Unemployment, per capita income and government expenditure based on the study of Rezagholizadeh et al (2019) and value added of the agricultural sector based on the study of Ziyatbar Ahmadi and Karimi Petanlar (2019) are included in the research model. Also, the effect of property rights, the quality of public sector governance and the variable of religion based on the research of Islam et al (2020) were conside