Effectiveness of the Payment Network Regulator in the Accurate and Timely Identification and Collection of Taxes on Purchase Funds from Taxable Merchants in the Iranian Payment Network

Abstract

The regulator of payment network services in Iran, in addition to monitoring the compliance of activities within the payment network according to legal requirements, possesses information from merchants and their transactions that can be utilized by relevant institutions within the framework of the law. The Tax Administration is one of the entities that can use this information to identify and collect taxes. This study examined the effectiveness of the actions taken by the payment network regulator in the Iranian payment industry ecosystem, which intersects with the activities of the Tax Administration. The latent variables examined include the compliance of merchants' primary information with taxpayer data, alignment of business locations with tax files, transaction identification, tax deduction from transactions, and report submission. The methodology of this research is applied in terms of its aim and descriptive-survey in terms of its method. The results of the analysis of data extracted from the questionnaire indicate the effectiveness of the payment network regulator in accurately and timely identifying and collecting taxes on purchase funds from taxable merchants in the Iranian payment network.