Coll 28/3(2) ‘Persia. Financial situation.’ [‎11v] (22/817)

considerable improvement. Nevertheless it appears doubtful that revenue from this ^
source * ill ue sufficient to overcome the loss of revenue from the abolished taxes.
Receipts from excise on alcohol have improved considerably in the provinces as
well as in Tehran.
Considerable progress was made during the month in clearing up old tax cases
and in assessing the tax under the new law. During the month 5,0^9 inspections
of business houses were made, bringing the total for the year to 23,190.One thou
sand sixty-five tax assessement notices were issued against 1322 income and 583
for tax arrears under the old law. The total amount of tax assessed during the
month under the new income-tax law was 56,6/2,1^5 rials. At the end of Mehr,
14,600 individual tax declarations had been received. The agricultural income sur
vey commissions turned in 866 inspection sheets for Tehran, and tax assessment
has begun. Reports from the provinces indicate that the agricultural survey com
missions have been formed and are now operating throughout the country. How
ever, numerous sections, particularly Ostans 3,4 and 6, repoit that in many locali
ties the surveys cannot b? made on account of rebellious tribes and unsetded con
ditions. There are also large sections of land, particularly in the North, adminis
tered by the Ceded Properties Administration, from which the income is not tax
able under the income-tax law.
A fourth appeals commission was formed during the month to hear cases aris
ing under the old law, and five commissions were formed to hear cases under the
n t w law. On the basis of appeals made to date from assessmen's under the new
law, it appears probable that 80 to 90 per ctnt of the taxpayers intend to appeal
their assessments. As there are no limitations in the law against appeals to the
commissions and no limitations on carrying the commissions’ decisions to the
Finance Tribunal, it appears probable that thousands of cases will be tied up tor
months ii these two appeal courts, thus preventing any enforcement action to
collect the taxes. During the monthunder review the commissions heard 779 cases
involving tax arrears. This reduced to approximately 4,000 the number of cases
pending, and it is estimated that, with the formation of a fourth commission, they
should pass on about one thousand cases u month.
Collection of the income tax at Mahan has been particularly difficult The fac
tory owners have protested agdinst the application of the new tax against their
i32^ incomes, have protested against the amount of tax assessed, and have only
made partial pa>ment of the amount of tax due on the incomes they have them
selves declared.
In spite of all our efforts it was found impossible to come to any agreement
with the Ministry of Interior on a tax programme for the municipalities. As the
orr posals made to the Ministry inxolvtd the turning over to the municipalities of