Iran National Tax Administration has plans to tax bank card owners with more than 45 transactions in one month.
It has reportedly proposed implementing new regulations, as per which bank cards with more 45 receivable transactions will be marked as suspicious and must be connected to a tax file," Siavash Gheybiour, an official with the INTA, said on state TV.
"Bank accounts of businesses are separate from those of individuals," he said, "A cap will be set for the total value of transactions…cardholders with higher transactions will be required to pay tax."
According to the official, the measure is designed to help INTA detect businesses that refuse to use POS terminals and ask customers to transfer money directly to their bank accounts via their debit cards.
INTA in coordination with the CBI decided last year to connect payment gateways to the national tax system to curb fraud and tax evasion by businesses, particularly those in the high income brackets.
According to INTA, so far 2.9 million businesses have filed their tax returns and the number is expected to reach 5 million by March 2023 when the calendar year ends.
Applicants for POS or other payment gateways are required to first file tax returns and those already owning the payment machine are automatically taxed. Most business owners have not filed their tax return for their payment gateways fearing higher taxes.
Some guilds are censured for demanding cash from customers and evading proper bank channels to avoid paying tax. This has rendered tracking their real incomes difficult if not impossible. Officials say by looking into POS transactions the veracity of tax returns can be improved.
So far 15 guilds, including 50 occupations, are obliged to use POS machines and issue a receipt when selling goods and services.
In addition, policymakers say the rules are expected to “significantly curb” illegal activities using “rented payment gateways” and play a key role in tracking fraud, money laundering and online betting because owners of the gateways are legally accountable and must pay tax.
Following reports on increasing tax evasion and strange tax exemptions, the government says it is committed to curb rampant tax dodging that costs the country billions of dollars.
Controlling POS devices in and outside Iran and tightening supervision over dubious bank transactions is on the government agenda following collaboration between administrative bodies, namely the CBI, the Ministry of Information and Communications Technology and INTA.
INTA has said it is planning to make use of artificial intelligence to detect fraud and tax evasion by business owners.
