Investigating the Effects of Tax Incentives on Tax Compliance and Business Outcomes of Taxpayers Using Agent-based Modeling Approach

Subject Areas : Financial engineering

Foroogh Moezzi ¹ , Mohammadali Keramati ² , Mohammad Ebrahim Mohammadpour Zarandi ³

1 - Department of Industrial Management, Tehran Markazi branch, Islamic Azad University
2 - Assistant Professor, Department of Industrial Management, Tehran Markazi branch, Islamic Azad University, Tehran, Iran.
3 - Professor, Department of Industrial Management, Tehran Markazi branch, Islamic azad university, Tehran, Iran

Received: 2022-09-29 Accepted : 2023-02-10 Published : 2023-12-22

Keywords: Tax compliance, Tax Incentives, Business Outcomes of Taxpayers,

Abstract :

Taxation is one of the main incomes of the government, and the government uses tax incentives as a key tool to improve tax compliance among taxpayers. This study aimed to understand the effects of tax incentives on tax compliance and business outcomes of taxpayers. Considering its purpose, this study is an applied research, and regarding its data collecting method, both field and secondary research methods have been used. In secondary research, we used books, national journals, and relevant articles form national and international databases, while in field research we used direct observations and interviews. Using various methods and tools for collecting the data, we investigated the agents, their interactions with each other and with the environment, and at the end, we analyzed the collected data using AnyLogic software, and the three hypotheses of the article were investigated. The results indicate that the tax incentives for any taxpayer can decrease the corresponding tax perception, which leads to tax compliance and change in the profitability and costs.

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