This study investigates the intricate relationship between tax audits and corporate tax avoidance, with a specific focus on the moderating role of audit quality within the unique economic and regulatory landscape of Palestine. Drawing upon established theories of tax avoidance and audit quality 2, 4, 6, this article develops a conceptual framework and testable hypotheses to examine how the intensity and effectiveness of tax audits influence firms' tax avoidance strategies, and how external audit quality can mitigate or exacerbate this relationship. While prior research has explored these dynamics in various global contexts 9, 15, 18, the Palestinian setting presents distinct institutional characteristics, including a developing tax administration system and a complex geopolitical environment, which warrant specific investigation. This article synthesizes existing literature, proposes a detailed methodology for measuring key variables, and empirically tests the hypotheses using panel data from Palestinian listed firms. The findings of this research are anticipated to offer valuable insights for policymakers and tax authorities in Palestine in designing more effective tax enforcement mechanisms and fostering greater tax compliance.
Za`arir et al. (Fri,) studied this question.