![\"Iran\u2019s](\"https:\/\/www.ncr-iran.org\/en\/wp-content\/uploads\/sites\/2\/2018\/05\/Irans-tax-evasion.jpg\" "\\"Irans-tax-evasion\\"")
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By Staff Writer\u00a0<\/p>\n
While all the governments under the Iranian regime, including the current one presided by Hassan Rouhani, have been in the business of increasing taxes every year to cover part of government spending, regime\u2019s own entities and affiliated businesses refuse to pay their taxes.<\/p>\n
That\u2019s while such businesses and entities make thousands of billions each year and have their grip on the biggest part of Iran\u2019s economy.<\/p>\n
According to regime\u2019s Deputy Industry Minister \u2018Reza Rahmani\u2019, Rouhani has announced that this year\u2019s tax base will be increased so the tax evaders are identified. (State-run Mehr news agency, April 30, 2018)<\/p>\n
Speaking in such a way as if he\u2019s uncovered a huge discovery, Rouhani\u2019s government spokesman \u2018Mohammadbagher Nobakht\u2019 meanwhile has spoken of designing a new system so the businesses will no longer be able to move ahead with their tax evasion. (State-run Aftab website, April 30, 2018)<\/p>\n
Head of regime\u2019s Taxation Affairs Organization meanwhile points to business owners who take advantage of police techniques for tax evasion purposes, bypassing security doors and using magnets to erase their computers\u2019 hard drive information.<\/p>\n
The fact, however, is that it\u2019s quite clear for Rouhani\u2019s government and other tax authorities what entities and businesses are involved in tax violations, without needing to design complicated systems to detect tax evaders\u2019 subtle techniques. After all, how is it that ordinary people can\u2019t use complicated techniques to evade paying their taxes, but \u2018four brothers\u2019 who are evidently linked to the regime have managed to run away with 823 billion tomans in tax violations? (State-run Javan newspaper, February 28, 2018)<\/p>\n
Revealing the large extent of tax evasion among entities and regime affiliated businesses, former head of regime\u2019s Taxation Affairs Organization \u2018Ali Asgari\u2019 refers to a \u2018Petrochemical businessman\u2019s 2300 billion-toman tax evasion case\u2019, saying \u201cwhen we found out about a business person\u2019s 2300 billion-toman account turnover carried out under his wife and children\u2019s names, and decided that it was taxable, the account holder wrote a letter to officials, complaining that the organization wants to cut off the head of the goose that lays golden eggs.\u201d(State-run Alef website, February 1, 2018)<\/p>\n
Pointing to financial damages due to tax violations, head of regime\u2019s Audit Court \u2018Adel Azar\u2019 says \u201cso far, we\u2019ve suffered 30,000 billion tomans in financial damages due to non-payment of taxes.\u201d (State-run Sarpush website, January 24, 2018)<\/p>\n
It\u2019s exactly because of such tax evasion cases that regime\u2019s economic expert Hossein Raghfar acknowledges that \u201cinvolvement of some special entities in economic activities has led to huge disruption in the country\u2019s economy\u201d, adding \u201csuch entities both steal public wealth and evade paying their taxes as well, with their tax evasion being the Achilles heel for Iran\u2019s economy.\u201d<\/p>\n
Jamshid Pazhouyan, also a regime\u2019s economist, meanwhile points to Iranian society\u2019s highest income earners who \u201ccould move ahead with their tax evasion without being detected by the law.\u201d (State-run Tejarat newspaper, April 23, 2018)
The fact, however, is that tax evading entities and business own more than 60 percent of Iran\u2019s economy and the economy\u2019s 30,000 billon tomans in damages is due to their tax violations, while the majority of Iranian people are living below poverty line.<\/p>\n
Some of such entities include the Revolutinoary Guards with their so-called Kahtam-al-Anbia Construction Headquarters, Astan Quds Razavi, Mostazafan Foundation, and the headquarters tasked with Execution of Khomeini\u2019s Orders.<\/p>\n
These are the same entities \u201cwhose involvement in economic activities has hugely disrupted the country\u2019s economy\u201d and \u201ctheir tax evasion is the Achilles heel for the economy\u201d, according to Hossein Raghfar.<\/p>\n
Such entities and business enterprises are not required to respond to anyone but the office of the regime leader Ali Khamenei.<\/p>\n
Tax evasion has become so institutionalized within the regime that Ebrahim Raeesi, chairman of Astan Quds — one of the biggest tax evading entities– addresses Hassan Rouhani in a TV debate during regime\u2019s presidential election show in May 2017, saying \u201cthe taxation system is discriminating and there\u2019s a widespread tax evasion. The government has to deal with white collars that refuse to pay their taxes.\u201d(State-run Asr-e-Iran website, April 30, 2017)<\/p>\n
In 2011, 41 percent of the country\u2019s economy was owned by entities that were exempt from paying taxes, according to Mohammadreza Foroutan, former spokesman for regime\u2019s Economic Developments Taskforce. Today, however, more than 60 percent of Iran\u2019s economy is controlled by different state organs or regime-linked business enterprises that are either exempt from or evade paying taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"
By Staff Writer While all the governments under the Iranian regime, including the current one presided by Hassan Rouhani, have been in the business of increasing taxes every year to […]<\/p>\n","protected":false},"author":10,"featured_media":51133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[178],"class_list":{"0":"post-24711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-save"},"yoast_head":"\n