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Due to its triple functions, tax system plays a key role in social and economic system of a country. Based on this and Due to the impact of taxation on other economic sectors and its challenges as well as its broad interaction with society, the tax system was chosen as one of the axes of economic transformation plan. Reform of the tax rules, implementation of Comprehensive tax plan and Full implementation of the VAT system. Transformation of the tax system has three main axes including reforming the tax laws and regulations, implementing the comprehensive tax plan and establishing the value added system comprehensively. In this respect, the Value Added Tax Act which was passed in June 2008 has been implemented since October of the same year. So far five steps out of the seven steps of its establishment process have bean completed is expanding to the final chain. The comprehensive tax plan which has been designed in three stages and 32 projects is completing. So far the entire first phase projects, except for the unified tax system software has been implemented. The last and in fact the most important action that should be done in tax system reform plan is creating a proper legal, managerial and Executive structure in the tax law so it is considered in the tax system reform bill. The most important approaches of this bill are making preparations for updating the tax system through the creation of the necessary legal infrastructure, increasing tax compliance, orientating toward total income tax, Establishing appropriate performance guarantees, simplifying the tax system, promoting the tax position as a means to confront with speculation and brokering, developing tax information system and modifying tax exemptions in order to increasing clarity and effectiveness and to targeting them.

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Tax system development is regarded as a fundamental area of the Iranian economic development. In this respect, substitution of tax revenues for unsustainable ever-changing oil revenues has always been a major area of the country’s economic and social development plans. This is what one may feel more significantly than ever bearing in mind the 5th Development Plan’s obligation for independence of the state’s current expenditures from oil and gas export revenues, achieving a T/GDP ratio of %10 and an annual %10 growth of public revenues to cost credits (excluding oil and gas export revenues) taking into account circumstances resulting from economic sanctions against Iran. In spite of efforts made for the development of the country’s tax system during recent years, there still remain so many challenges. Having in mind three pillar components of a tax system namely, “national production”, “tax laws and regulations”, and the “organization in charge of taxation”, one may mention the following as major barriers and challenges ahead of the Iranian National Tax Administration (INTA): The asymmetrical combination of the Iranian national production, a large volume of the services sector, the way incomes are distributed throughout the country, existence of a large underground economy, existence of public institutions with high turnovers, complexity of tax laws and regulations, weakness of tax laws enforcement guarantees, narrowness of tax bases, broadness of tax exemptions, low efficiency of certain tax incentives, shortage of skilled human resources and insufficient fund resources, lack of an integrated approach to taxpayers, and infidelity of guild :::union:::s to their legal and professional obligations. There is no doubt that it will be impossible to develop the country’s tax system without simultaneous reinforcement of the mentioned-above pillar components. The present paper aims at studying the most important measures already taken for the development of the Iranian tax system along with measures to be taken in future following a review of the functions of taxes in the country and the challenges ahead of the country’s tax system having in mind the three pillar components mentioned above. The introduction and development of the VAT system, revision of tax laws and regulations, implementation of TARA (Tax Automation and Revenue Administration) Project, and HRD reforms are among major areas followed for changing and developing the country’s tax system. But as for measures to be taken in future for the development of the country’s tax system, one may refer to the reform of the country’s overall macroeconomic structure in terms of the way economic activities are done, development of corporate activities, qualitative development (modernization) of the services sector, broadening tax bases, elimination of redundant tax exemptions, resolving INTA’s budget restrictions, provision of human resources, as well as taking all legal, administrative and judicial measures required for combating underground economy.

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This paper discusses the evolution of the role of Customs in recent decades and states the necessity and importance of trade and economic in the state of the country endeavoring to introduce the Customs and Customs duties are important and diverse. It also considers the growth in commercial operation procedures for import, export, transit and Customs revenue during the fourth and fifth plan of the country development to find a way to examine the challenges facing Customs and Customs as being reasons for the economic development plan will focus as part of outreach. This article analyzes Customs procedures done within ten projects in the development of Customs duty proposals to meet the challenges of new deals.

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Proper implementation of important and basic governmental plans primarily depends on existence of robust and efficient monetary and financial institutions. Creating Money, financial brokering, financing and granting banking facilities are main functions of banking system. In recent years banking system has played important role in the country’s development and construction so this paper indicates the most important policies and approaches of banking system in recent 8 years. Redefining the principal 44 of the Constitution and notification of its general policies are main pillars of the country’s economic policy making. Since the implementation of these policies within the framework of predicted regulations and structure, a novel order has been set up in the economic system of the country. Reappraisal of economic domain of governmental, private and cooperative economic activities, putting an end to government’s economic tenure, laying the foundation for non-governmental sectors to participate in all economic fields, extensive granting of big state-own firms and finally improving the business environment are most crucial approaches of these policies. This article tries to clarify important actions resulted from above mentioned policies with noted approaches.

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A pathological examination of Iran’s tax system in a framework guided by its three pillars indicates systematic flaws in all these pillars and furthermore argues the inefficiency of the tax system. Inefficiencies in rules and regulations include complexity and incomprehensiveness, lavish and inefficient tax exemptions, inefficient necessary enforcements in execution of law, and limited tax base. Tax collector organizations flaws include weaknesses in the information infrastructures, and consequently, its limited utilization, the absence of comprehensive data base of tax payers, lack of informational and statistical relations among executive bodies, organization-wide performance-based model of modularity and inefficient taxation processes. According to our investigations in the taxpayers’ side, there are flows such as inappropriate conditions of taxpayer compliance especially by the general public which is mainly rooted in flaws in other two pillars and social culture of them. Overall flaws of the three pillars of tax system had brought about challenges and issues for the system and had turned into the tax system specifications. Some of these challenges are lower tax to GDP ratio, lower share of tax in government income, lower share of tax in government current expenditure, higher costs of tax collection, inappropriate compliance with tax rules by the public, undiversified nature of tax bases and inappropriate tax revenue composition, traditional and outdated tax levy practices, lavish and inefficient tax exemptions, lags in tax collection and flawed tax information system.

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In this paper, in order to achieve the roadmap for reforming the VAT law and its administrative procedures in Iran, executive components evaluation of the VAT system in 22 countries and its comparison with Iran have been studied. The results suggest that the VAT in Iran is a consumption one and based on the destination principle as in the selected countries. Registration criteria in most of the countries are annual turnover or annual taxable turnover, while in Iran, addition to these criteria, the nature of economic activities also is used. Moreover, VAT standard rate in almost all countries, except Austria, India, is a unit as in the Iran. In the countries without discounted rates in their tax structure, usually there is a wider range of exempted goods and services without credit, and this observed in Iran, Armenia and etc.

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Promoting non-oil exports is one of major and principal goals of economic development of Iran. Textile industry with its high financial turnover and its labor intensive technology is an ancient industry in the world that has been suitable to rely on for advancement of exportation. So, knowing about the textile demand and its elasticity in order to gain foreign exchange and economic growth seems to be a matter of great importance. So this paper uses seemingly unrelated regressions econometric method to estimate the almost ideal demand system model to determine the demand for the textile products export (in three groups of leather, wool and cotton and their products). This paper aims to obtain demand and elasticity of textile products for the period of 1992 to 2010 then it will test the hypothesis of structural stability of model's coefficients for a predicted period (2011-2015) via simulation of model variables on basis of different decreasing price scenarios. Results show that decrease of prices lead to lack of structural stability in model coefficients and would change the long run expenditure shares of world's demand in textile products exportation.

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Planning in firms as a kind of resources planning in an enterprise at the macro level is of particular importance. Software packages used to manage resources are integrated sets of pre-designed and pre-built software that cover all business processes of the organization. Achieving maximum efficiency in the implementation of these software’s and their synchronization with organizational needs are very complex problems. From a general view compatibility of software’s input and output and its process control requires modeling and designing of a corporate planning system as a software package in the firm. In this paper, a system which can be useful for different economic planning agency is prepared and supported. This system has been used in of one of the companies of the Industrial Development and Renovation Organization of Iran. Using this system we could evaluate company’s past and present problems. The output of this system in the form of economic and financial ratios could be used to evaluate the policy of the firm and its balance sheet within the firm’s planning framework. This framework can then be used in the preparation of budgets and financial plan in the firm.

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Today the role of tax system is based on three primary political, social and economic goals. its biggest task is to defend economic security of economic agents as well as being known as an income method Economic insecurity has led to the increase in size of the underground economy, so itreduces amounts of investments in the economy .This phenomenon has a negative effect on the tax base and reduces tax revenues. The main objective of this paper is to investigate the relationship between tax revenue and economic security in Iran during the period of 1977-2011. For this purpose, we used the Hsiao's- Granger and Toda & Yamamoto (TY) causality tests. The results show that there is a unilateral causality from the economic to security tax revenue. The economic Health and security of the country is subject to the healthy tax structure. Through establishing Strong tax system, creating appropriate cultural and encouraging people to pay taxes, economic structure of the country will be stronger. So according to the ratio of tax revenues to GDP is low and there is bilateral causal relationship between this variable and economic security, the tax system requires a fundamental review to provide financial security and investment. Consequently, tax revenues increase.

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The business environment refers to a set of policies, legal, institutional and regulatory terms that affects the economic activities of enterprises, while the enterprise managers are not able to influence much on these factors. The judiciary operation has a role in economic efficiency and the protection of property rights, guarantee the performance of contracts, protection of micro shareholders, liquidation, and bankruptcy of a firm. The weakness of this system increases uncertainty in the private sector and economic activity and discourages them from investing and participating in the economy stems. This study by using the World Bank reports on Doing Business project (Doing Business) explains the importance of the judiciary in the business environment and studies the judicial proceedings and reforms in some countries in order to increase the quality and efficiency of the judicial system with the aim of improving contract enforcement. The results show that operations such as creation of special business courts, and providing electronic hearing can resolve commercial disputes more easily, fast, and cheaply and increase the efficiency of the courts. These operations have a direct impact on improving the quality and efficiency of contract enforcement