Testing the Threshold of the Expectation Gap in Declared Versus Assessed Taxes as a Driver of Tax Evasion
Keywords:
Expectations gap, declared tax, tax deduction, tax evasionAbstract
This study aimed to examine the role of the gap between declared tax and assessed tax as a driver of tax evasion, with a focus on comparing the impact of internal versus external organizational factors and technical versus standard-related conflicts. The present research was quasi-experimental and applied in nature. Data were collected using a questionnaire administered to 150 experienced members of tax dispute resolution boards, who were purposefully selected and divided into two equal groups. Data analysis was performed using analysis of variance (ANOVA) and t-test methods in SPSS software. The findings confirmed both main hypotheses and demonstrated that the expectation gap is a significant driver of tax evasion, although the intensity of this effect varies across dimensions. Results related to the first hypothesis indicated that the expectation gap in “internal organizational factors” is a stronger driver of tax evasion compared to “external organizational factors.” Specifically, the mean impact of internal organizational factors (62.17) was significantly higher than that of external organizational factors (57.13). In the ranking of factors, “excessive administrative bureaucracy” was identified as the most important internal organizational factor, with an impact percentage of 31.28%. Additionally, the findings for the second hypothesis revealed that the expectation gap in “technical (operational) conflicts” is a stronger driver of tax evasion than “standard-related conflicts.” The mean impact of technical conflicts (48.64) was significantly higher than that of standard-related conflicts (43.29). Within this dimension, “differences in the timing of recording items in accounting compared to tax timing methods” was identified as the most influential technical conflict. In the overall conclusion, it can be asserted that although the gap between declared and assessed tax is inherently challenging, the primary focus for reducing tax evasion should be on removing internal organizational barriers and issues within the tax administration system (such as bureaucracy), as well as resolving technical and operational inconsistencies between accounting standards and tax regulations. These findings suggest that internal and technical reforms within the tax authority are far more effective than purely macro-level policy or cultural interventions in reducing the expectation gap and improving tax compliance.
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Copyright (c) 2025 Ali RakhshaniFar (Corresponding author); Alireza Hirad, Habib Piri (Author)
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