Hamideh Esnaashari; Mina Nourmohammadi
Abstract
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 ...
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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 asindependent 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
