This study examines the impact of the implementation of international financial reporting standards on the tax gap with emphasis on the role of political costs in the tehran stock exchange during the period 2014 to 2023 using the information of 155 selected companies using the information of 155 selected companies.
Hypothesis testing was estimated through multiple regression and generalized least squares method. The results showed that the implementation of International Financial Reporting Standards has a negative and significant effect on the tax gap, so that the implementation of these standards has reduced the tax gap. According to agency theory and stakeholder theory, using International Financial Reporting Standards as a basis for calculating taxable income maintains a high level of compliance between accounting profit and taxable profit, which reduces the difference between accounting profit and taxable profit. . The results also show that Political Costs moderates and narrows the relationship between International Financial Reporting Standards and the tax gap. In other words, according to the political cost hypothesis, companies with Political Costs are less likely to pay taxes. In other words, larger companies in terms of assets and equipment, because they have more resources and wider operations, because they do not include opportunity costs in the calculation of net profit, report higher profits on average, so look for ways to reduce Taxes are self-paying. As a result, the managers of these companies choose accounting methods that delay the payment of taxes.