This study explores the critical role of Key Performance Indicators (KPIs) in enhancing tax management within the airline industry, with a focus on improving compliance and strategic decision-making. Employing a mixed-methods research design, the investigation combines qualitative insights from in-depth interviews and case studies with quantitative analysis of survey and financial data from a diverse sample of airlines. The findings reveal that the implementation of compliance-focused KPIs significantly improves tax compliance rates, reduces penalties, and enhances audit outcomes. Furthermore, KPIs related to strategic tax planning are directly linked to improved financial performance, demonstrating their strategic value beyond compliance. Operational efficiency KPIs streamline tax management processes, leading to cost savings and more effective resource allocation. This study contributes to the literature by providing empirical evidence of the benefits of KPI-driven tax management in a complex and highly regulated industry. It also offers practical insights for tax professionals and executives in the airline industry and beyond, highlighting the importance of integrating KPIs into tax management processes to achieve strategic and operational goals. The research suggests avenues for future investigation, including the impact of emerging technologies on KPI efficacy and the cross-industry applicability of these strategies.
MoghadasNian et al. (Sun,) studied this question.