The effect of Mental Accounting on tax compliance of self-employed auditors in the presence of some intermediate factors

Abstract

The purpose of the this applied research is to investigate the effect of mental accounting on the tax adjustment of self-employed auditors in the presence of financial literacy factors, work conscience, tax incentives and tax evasion. In this study, Olsen et al. (2018) standard questionnaire with the of Cronbach’s alpha reliability (0.93) was completed by 150 self-employed auditors who are active in the Iranian Audit Association. The obtained data were also analyzed using smart PLS software. The results showed that the effect of mental accounting on VAT and income tax payments is 78 and 45 percent, respectively. The effect of financial literacy, work conscience, tax incentives and tax evasion on VAT payments and income taxes can be predicted at 44% and 69%, respectively. The intensity of the relationship between audit and payment of value added tax was 0.289. Also, the intensity of the relationship between mental accounting and income tax payment was 0.192.

Keywords

• "tax payment"
• "self-employed auditors"
• "mental accounting"
• "tax evasion"
• "financial literacy"