Tax payments by taxpayers are one of the most important tasks that citizens can perform in order to provide financial resources for the welfare of society. Due to government support for political companies with political ties have a non-transparent operating environment, resulting in greater conflict of interest in these companies than in other companies, and higher representation costs. Therefore, this study examines the relationship between tax planning and agency costs with emphasis on the role of political Connections in the Tehran Stock Exchange during the period 2012 to 2018 using the information of 145 selected companies.
The results of the research hypotheses showed that tax evasion and tax evasion increase agency costs. Escape or avoidance of tax payments often play a role in diverting profits to the benefit of managers, and managers try to pursue their opportunism by manipulating profits and prioritizing their interests over the interests of other shareholders, which leads to increased costs. The results also show that representation costs increase in companies with political ties. Because managers with political relationships easily do their opportunistic activities in environments that conflict with interests. addition, the existence of political relationships in companies exacerbates the relationship between tax planning (tax evasion and tax evasion) and agency costs. In other words, in companies with strong political relationships, managers try avoid tax evasion or illegal tax evasion; Postpone payable taxes or avoid paying them, which reduces the transparency of disclosed information and increases the opportunism of managers in situation, which increases agency costs