Abstract

Uncertainty and information are the basis of the general information theory. Uncertainty is the core of this theory and information is defined as uncertainty reducing. According to the information view, the accounting function is to provide information and thus reduce uncertainty. So, IIEQ results in tax risk reduction due to it’s reduction in uncertainty about the company's declared tax. In this research, by explaining the difference between the declared and the certain tax amount as the tax risk indicator, the relationship between IIEQ and corporate tax risk was investigated in a multivariable regression method. The research findings, using 136 companies information during 2008-2016, show that environmental uncertainty increases the company's tax risk. Also income quality, income forecast accuracy, financial reporting quality and transparency reduce the tax risk. In addition,corporate governance quality is effective for tax risk reduction. On the other hand, the best path in fuzzy decision tree method indicates the importance of environmental uncertainty, income forecast accuracy, financial reporting quality and transparency in tax risk reduction based on the combination of the most important IIEQ factors. The research findings can be used to assess the companies’ tax risk. It is also suggested to the company’s directors to improve the IIEQ for reducing tax risk.