Investigating the Effect of Tax Collection Rate on the Relationship between Economic Policy Uncertainty and Corporate Tax Burden: A Quintile Regression Approach

Uncertainty of economic policies, including inflation uncertainty, has wide-ranging effects on macroeconomic performance. Uncertainty challenges economic planning and increases investment risks. In such a situation, strategies to prevent tax evasion may become ineffective. In this situation, companies mainly adopt defensive behaviors to pay less tax. Therefore, companies reduce risk-taking initiatives to avoid taxes. Considering the topic, this study aimed to investigate the effect of the tax collection rate on the relationship between the uncertainty of economic policies and the tax burden of companies from 2010 to 2018 in selected companies on the Tehran Stock Exchange with the approach of quantile regression and fixed effects. The results of this study showed that the amount of tax collection reduces the relationship between inflation uncertainty and the tax burden of companies.