Explanation of Interaction between Iranian Physicians and Government in the Field of Tax

A Qualitative Study

Authors

  • Abolghasem Pourreza Professor, Department of Health Management and Economics, School of Public Health, Tehran University of Medical Sciences, Tehran, Iran

Keywords:

income tax; tax declaration; tax agreement; tax culture; tax justice; physicians; tax officers

Abstract

Introduction: One of the main tools for fair redistribution of income in the society is taxes, and, in developing countries, the public sector is financed through taxes. Identifying physicians' income to determine their income tax is associated with many problems. This study was conducted to identify the factors that affect the interaction between Iranian physicians and the government regarding taxes to cover gaps in the tax system and resolve the problems associated with the interactions between physicians and the government relative to taxes.  

Methods: This study was a qualitative content analysis conducted in 2015. Two groups of participants were involved in this qualitative study. The first group was 11 experts and scholars from organizations related to taxes, and the second group was 10 general practitioners and specialists selected through purposive sampling until data saturation was achieved. MAXQDA 10 software was used for assigning interviews, mining codes, and categorizing the codes. In addition, qualitative content analysis was used to analyze the data. 

Results: Data analysis resulted in emergence of three categories, i.e., “Tax Affairs Organization and government,” “physicians,” and “Medical Council.” There were 12 subcategories for these three categories. The results of this study showed that the Tax Affairs Organization does not have access to the income information of physicians required to determine their taxes. The government should create motivation for accurate and proper tax payments by physicians by providing them with various amenities. It should be clear and tangible where the government spends the taxes received from physicians, and an appropriate tax culture should be created by using the mass media. 

Conclusion: The Tax Affairs Organization should identify the physicians who do not pay taxes through interaction and cooperation of the Medical Council as a trade organization, and it should compile their tax records. The Medical Council should acquire information from the Tax Affairs Organization when issuing and renewing medical licenses in order to reduce tax evasion by physicians. Their income rates should be considered carefully with regard to the increases in their incomes to create justice among the different specialties of physicians.

References

Alm J, W. Schulze. Why Do People Pay Taxes?. Journal of Public Economics.1992; 48(1): 21-38. doi:

1016/0047-2727(92)90040-M.

Alm J, Sanchez I. Economic and noneconomic factors in tax. Journal of Public Economics .1995;58(2):3- 18. doi: 10.1111/j.1467-6435.1995.tb02312.x

Church B, R.L.Hannan. Shared interest and honesty in budget reporting. Accounting, Organization and

Society.2012; 37(3): 155-67. doi: 10.1016/j.aos.2012.01.002

Mansfield, Charles .Tax Administration in Developing Countries: An Economic Perspective. International

Monetary Fund .1817: 1-23. doi: 10.2307/3867282

Rickard J.A, Russell. A tax evasion model with allowance for retroactive penalties. Journal of Economic

Record. 1982; 58(4): 379-85. doi: 10.1111/j.1475-4932.1982.tb00389.x

Abel B. Tax Evasion and Goverment Spending In Developing Countries. Journal of Public

Economics.2007; 56(2):323-38.

Zahi N, shahrzad M. Factors affecting tax evasion. Journal of tax research. 2010;11(26):9-60.

Asadolahzadeh Bali M. The effectiveness of tax inequality and income distribution in Iran. Journal of tax

research. 2008;10(73):1-92.

Navidy H, Tayebnia A. Detection system in an ideal tax system. Journal of tax research.2010;11(10):9-24.

Igda news. November 2014; Available from: http://igdanews.ir/index.php/medical/medical-news/medical- economics/949-2014-11-11-04-20-58.pdf.

Salamat news. June 2014; Available from: http://www.salamatnews.com/news/114323/.Pdf

Lincoln YS. Naturalistic Inquiry. Thousand Oaks, CA: Sage Publications; 1985.

Luigi, Bernardi. Tax systems and tax reforms in Europe: Rationale and open issue for more radical reforms.

Journal of Tax Systems. 2004; 30-54.

Pajoyan J, darvishi B. Structural reforms in the tax system in Iran. Journal of tax research. 2010;11(8):10- 47.

Rezaei Gh, Khademi A. Position of changes and comply in the tax system reform: global experience and

challenges of the tax system. Journal of tax research. 2010;11(9):84-100.

Mohseni A, kamijani A. Factors effecting on the increase of tax culture in the business sector payers(guild

stationery) Alborz. Journal of tax research. 2010;11(9):200-28.

Zayer A.The status of simplification in the tax reform program: global experience and challenges of the tax

system. Journal of tax professional. 2009;9(6):158-84.

Shakory A, Sagheb Fard M. The effect of taxation on income distribution in Iran. Journal of tax

professional. 2008; 8(3):106-39.

Jeffry M, Perloff. Effects of Taxes and other Government Policies on Income Distribution and Welfare.

Journal of policy Modeling. 2008;419-43.

Nikomaram H, Kavosi A. Tax culture and its review of the medical community north of Tehran. Journal of

Basirat. 2007;14(38):72-92.

Fisman R, Svensson J. Are Corruption and Taxation Really Harmful to Growth? Firm Level Evidence.

Journal of Development Economics.2007; 83: 63-75. doi: 10.1016/j.jdeveco.2005.09.009.

Fazlzadeh A, Nabi N. Differences of taxable income according to the tax audit and taxable income assessed

tax administration. Journal of tax research.2012;11(18):58-75.

Khanjan A. The role of formal institutions in tax evasion (case study of mashhad city). Journal of tax and

development research. 2006;9:19-26.

Tahmorsy M. Pathology of the tax system in Iran. Journal of Zekr. 2012;70:20-43.

Published

2022-02-21