The Moderating Role of Internal Audit Efficiency on the Relationship between Tax Revenues and Sustainability: Evidence from Palestine رسالة ماجستير

Abstract

This study aims to examine the moderating role of internal audit efficiency on the relationship between tax revenues and sustainability in Palestine, using a descriptive analytical approach. The study population consisted of (750) respondents, representing employees from four major tax departments: the Income Tax Department, the Value Added Tax Department, the Customs Department, and the Property Tax Department. A simple random sample of (255) employees was selected, representing approximately (34%) of the total population, to ensure accurate and comprehensive results. Data were collected through a questionnaire distributed both personally and electronically to ensure broad coverage and reach the largest possible number of participants. The data were analyzed using the SPSS statistical analysis software. The results revealed that tax revenues have a strong and direct impact on the three dimensions of sustainability: economic, social, and environmental. The study supported the validity of the first main hypothesis and its related sub-hypotheses, indicating that tax revenues contribute to enhancing economic stability by increasing financial resources to support government projects and public services, thereby fostering economic development. The study also showed that tax revenues play a central role in achieving social justice by funding social programs aimed at reducing social gaps and supporting the most vulnerable groups. Additionally, tax revenues contribute to funding environmental initiatives, helping to protect natural resources and promote sustainable development. However, the study found that internal audit efficiency did not show a statistically significant moderating effect on the relationship between tax revenues and sustainability. The second main hypothesis and the sub-hypotheses related to the role of internal audit efficiency as a moderator variable in the three sustainability dimensions (economic, social, and environmental) were rejected. This suggests that other factors, such as financial transparency, the effectiveness of tax policies, and efficient resource management, have a greater impact on this relationship. Based on these results, the study made several important recommendations. First, it is essential to invest in training internal audit staff to improve their efficiency and enhance their transparency, through the design of specialized and comprehensive training programs. Second, developing effective and innovative strategies for tax revenue collection, including improving collection systems and combating tax evasion. Third, launching national awareness campaigns to promote the concept of environmental IV sustainability and the importance of adhering to environmental policies. Finally, formulating tax policies that support social justice, focusing on the fair distribution of resources among individuals in society to achieve integration among the three sustainability dimensions.