Investigating the Technological, Legal, Operational, and Strategic Factors Influencing Financial Transparency in the Tax Management of Digital Businesses
Keywords:
Financial transparency in tax management, technological factors, legal factors, operational factors, strategic factorsAbstract
This study aimed to identify, validate, and analyze the technological, legal, operational, and strategic factors affecting financial transparency in the tax management of digital businesses and to determine the relative influence of each factor. A mixed-methods research design was employed. In the qualitative phase, 30 experts in taxation, accounting, and digital business were selected through purposive and snowball sampling. Data were collected using semi-structured interviews and analyzed through a three-stage coding process, resulting in the extraction of 37 indicators grouped into four major dimensions. In the quantitative phase, a questionnaire was administered to 146 tax experts and managers from the Iranian National Tax Administration. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), and the measurement and structural models were evaluated in terms of reliability, validity, and goodness of fit. Structural equation modeling results demonstrated that all four dimensions exerted positive and statistically significant effects on financial transparency in digital business tax management (p < 0.001). Legal and regulatory factors exhibited the strongest impact (β = 0.882), followed by technological and infrastructural factors (β = 0.823), strategic and adaptability factors (β = 0.641), and operational and business-model factors (β = 0.341). Furthermore, model-fit indices (SRMR = 0.05; NFI = 0.96), together with satisfactory values of composite reliability, Cronbach’s alpha, average variance extracted (AVE), R², F², and Q², confirmed the robustness, explanatory power, and predictive capability of the proposed model. Financial transparency in the tax management of digital businesses is primarily driven by clear and enforceable legal and regulatory frameworks. Strengthening technological infrastructures, enhancing strategic adaptability, and improving operational mechanisms can further reduce the tax gap, increase voluntary tax compliance, and improve the efficiency of taxation systems in the digital economy.
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Copyright (c) 2025 Seyed Hadi Sanagostar (Author); Ali Najafi Moghadam (Corresponding author); Roya Darabi, Hossein Badiei (Author)
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