The role of bank transactions in the effectiveness of the tax system and reducing the gap between express taxes and diagnostic and definitive taxes of legal entities

A dynamic tax system is a system whose collection is at a maximum, the cost of its collection is at a minimum and as simple, decisive and uninterpretable as possible. The purpose of the current research is to investigate the role of bank transactions in the effectiveness of the tax system and to reduce the gap between express taxes and diagnostic and definitive taxes of legal entities.

The research has been done to examine the tax files of automobile companies accepted in the Tehran Stock Exchange, which includes 28 sampled companies for 224 years of company in the period of fiscal years 2011-2018.

The results showed that 63% of the studied companies declared their declared tax amount to be zero and did not consider themselves entitled to pay the minimum tax, also 34% of the companies declared their declared tax to have a difference of more than 15% with the final tax or It was diagnosed by the tax organization and only 7% of the tax declared by the studied companies was accepted by the tax organization.

The current tax system is not capable of receiving rights by its own trick and lacks the necessary effectiveness, so that in case of tax collection based on bank transaction, the financial resources needed by the government will also be provided on time, while tax revenue is collected immediately.