The Mediating Role of Innovation On the Relationship Between Information Technologies and Reducing Tax Evasion

Authors

Nawaf Thuneibat, Accounting Department, Faculty of Business, Mutah University, JordanFollow
Basel Ali, Accounting and Finance Department, Applied Science University, Kingdom of BahrainFollow
Mithkal Alqaraleh, Accounting and Finance Department, Middle East University, JordanFollow
Hussam Thneibat, Department of Business Administration, Faculty of Administrative and Financial Sciences, Aqaba University of Technology, JordanFollow

Abstract

Numerous nations depend heavily on taxation as their principal source of income, and tax evasion is a big issue for their tax agencies and governments. Studies on information technology and tax evasion in underdeveloped nations and other parts of the globe are few and far between. The purpose of this research was to investigate the link between information technology and the reduction of tax evasion. A mediator variable in the relationship between information technology and tax evasion was also explored in this research, which was called "Innovation." The research employed a survey approach, sending questionnaires to 200 auditors at Jordanian listed companies. A total of 121 questionnaires were gathered from auditors working in Jordanian companies and evaluated using Partial Least Squares methods (PLS). The findings revealed that information technology (both in terms of system quality and user quality) may help to prevent tax evasion. The role of innovation as a mediator has been shown to have a favorable and substantial association between information technology and the reduction of tax evasion. These findings underlined the Jordanian companys increased reliance on information technology in order to carry out tax obligations, which would aid them in their efforts to prevent tax evasion. This research serves as a guideline for tax administrations as they implement improvements in sustainable IT to streamline tax administration while also improving taxpayer services & increasing law enforcement effectiveness.

Recommended Citation

Thuneibat, Nawaf; Ali, Basel; Alqaraleh, Mithkal; and Thneibat, Hussam (2022) "The Mediating Role of Innovation On the Relationship Between Information Technologies and Reducing Tax Evasion," Information Sciences Letters: Vol. 11 : Iss. 5 , PP -.
Available at: https://digitalcommons.aaru.edu.jo/isl/vol11/iss5/5