Providing a Model for Assessing the Tax Literacy of Iranian Managers Using the Fuzzy Delphi Method

Abstract

Since all corporate managers’ decisions have financial implications, it is essential for them to have at least a basic understanding of financial rules, financial literacy, and tax literacy, which play a crucial role in shaping these decisions. The issue of tax literacy among different social groups and its measurement has been widely addressed in past international studies. However, the specific tax literacy of corporate managers, particularly at the national level, has not yet received sufficient attention. Therefore, the present study was conducted with the aim of providing a model for assessing the tax literacy of corporate managers using the fuzzy Delphi method. In this study, the concept of tax literacy, its theoretical foundations, and previous research in this domain are first discussed. Subsequently, the fuzzy Delphi technique was employed to achieve a consensus among 13 tax experts in the country, who formed the Delphi panel. A questionnaire consisting of 20 questions was developed and presented to assess the tax literacy of Iranian managers. Based on the research findings, eleven key components in the formation of tax literacy among managers were identified. These components include knowledge of payroll and compensation regulations, an understanding of value-added tax (VAT) principles, familiarity with reporting requirements for purchases, sales, seasonal transactions, and the taxpayers’ system, as well as an awareness of real estate taxation. Additionally, an understanding of income taxation processes, including money laundering and tax evasion issues, is considered crucial. The study also highlights the importance of tax exemptions in the income domain, knowledge of tax litigation processes and related authorities, and awareness of tax penalties for late tax debt payments. Furthermore, familiarity with accounting standards and financial statement analysis, as well as an understanding of the auditing process and the preparation of independent audit reports, are essential elements contributing to the tax literacy of corporate managers.