An interpretive structural model for factors affecting the tax compliance of professional athletes: a case study of football players

Abstract

PurposeTax revenues are becoming one of the crucial tax policy segments in developing countries. Governments intend to collect more funds in the budget. The study aimed to identify the dimensions and factors influencing tax compliance in Iranian professional football players.Design/methodology/approachBased on interpretive structural modelling (ISM), the required information was collected using a literature review and a pairwise comparison questionnaire from eleven sport academic and executive participants. Content validity index of the questionnaire was >0.7 and its inconsistency index was <0.1.FindingsThe influential factors put in six levels. Results showed “new technologies for implementing regulations” and “clear tax regulations” were the lowest level's most independent factors. Simultaneously, the “possibility of identifying violating taxpayers” and “transparency of the clubs' financial data” were the most dependent factors at the model's first level. Moreover, “legal” was the greatest, and “technological” dimensions had at least importance, and the “amount and manner of fines” was the influential factor. The findings can use for policymaking to improve the professional player's and society tax compliance.Originality/valueThe authors identified the most independent, dependent, influential and minor essential football players' tax compliance factors and the relations between these factors. Recognising each of the factors' role and level of importance can help governments and policymakers in tax legislation in sport.