Requirements for Applying the Fair Value Model to Comply with the Tax System in Iraq (A Practical Study in Agricultural Companies)

Abstract

This study delves into the implications of applying fair value accounting under International Financial Reporting Standards (IFRS) 13 in Iraq's agricultural sector. It examines how the implementation affects tax justice, compliance costs, e-tax system effectiveness, tax burden distribution, business competitiveness, and perceptions of tax avoidance mechanisms. This research uses data to examine these factors, involving surveys of agricultural companies and tax authorities through survey questionnaires. The study utilised smart-PLS to examine the relationship between the variables. The results indicate that fair value accounting boosts perceptions of tax justice and enhances the efficiency of e-tax systems, while simultaneously lowering compliance costs and simplifying processes. Following these implementations, there are signs of a fairer distribution of tax burden and enhanced business competitiveness. Perceptions of the effectiveness of tax avoidance mechanisms decreased. The study emphasises the importance of adopting a well-rounded strategy when implementing fair value accounting, considering both its advantages and obstacles.