The Role of Judicial Precedent in the Realization of Tax Justice

Abstract

An efficient tax system, under the principle of the rule of law, is founded above all on the pillar of “justice.” Nevertheless, the realization of tax justice within the Iranian legal system, as a fundamental ideal, faces serious ambiguities and challenges in the process of concretely implementing legal provisions. This is because the genuine establishment of this concept depends not merely on the enactment of substantive laws, but also on the quality of judicial interpretation and supervision over the conduct of administrative authorities. The importance of this issue becomes even more pronounced when the lack of conformity between “abstract justice” and “executive realities” casts doubt on the efficiency of the tax system. From this perspective, the central issue of the present study is to explain the role of “judicial precedent” in resolving this tension and establishing a connection between the text of the law and practical justice. This issue is reflected in the following main question: What role does Iranian judicial precedent play in influencing tax justice, including horizontal justice (equality of taxpayers under similar conditions) and vertical justice (the proportionality of taxation to actual ability to pay)? The findings of this descriptive-analytical study indicate that “judicial precedent” — particularly the decisions of the General Board of the Administrative Justice Court — possesses significant potential for simultaneously strengthening horizontal justice (equality of taxpayers under similar conditions) and vertical justice (the proportionality of taxation to actual ability to pay) through safeguarding the principles of fair adjudication. However, the quality of this influence has been affected by limitations such as prolonged judicial proceedings, ambiguities arising from the digital economy, and legal constraints. This situation makes it inevitable to reconsider the position of this institution as a complementary pillar to the legislature in order to move toward a fair tax system and enhance the efficiency of the tax system in confronting contemporary developments.