Corporate Tax Avoidance: A Literature Review and Research Agenda

Abstract

Tax avoidance can range from reduction of the corporate tax burden by legitimate use of tax rules to violation of tax laws. In this paper, we endeavor to synthesize the major findings of tax avoidance research from the accounting and finance literatures over the past ten years. We consider theoretical developments and the related empirical findings about the interconnected issues of measuring tax avoidance, and the possible causes and outcomes of corporate tax avoidance. We present some ideas for further research to examine underexplored topics regarding tax avoidance.

Pengaruh Keahlian Keuangan, Kompensasi Direksi, Profitabilitas, Pertumbuhan Perusahaan dan Kepemilikan Institusi Pada Penghindaran Pajak Perusahaan

“…Menurut Wang et al, (2019) Penghindaran pajak (tax avoidance) merupakan strategi menurunkan beban pajak dengan cara yang legal dan tidak melanggar peraturan yang berlaku. Sedangkan menurut Dyreng et al, (2008) penghindaran pajak adalah semua transaksi yang mengurangi kewajiban pajak perusahaan.…”

“…Menurut Hanlon & Heitzman (2010) penghindaran pajak adalah satu set dari semua strategi perencanaan pajak yaitu penghindaran pajak yang sah dan bentuk lainnya berupa ketidakpatuhan, penggelapan, dan lain lain. Menurut Wang et al, (2019), penghindaran pajak dapat dilakukan secara legal dan ilegal. Penghindaran pajak (tax avoidance) merupakan perencanaan pajak dengan melakukan aktivitas operasi yang memanfaatkan celah undang-undang perpajakan.…”

The Woebegone State of Companies Income Tax in Nigeria: Evidence from Widespread Tax Avoidance by Profitable Listed Companies

“…It connotes the use of loopholes in the tax laws to structure transactions in a manner that reduce the amount of tax that is payable by a firm. According to Wang, et al [9] tax avoidance can range from reduction of the corporate tax burden by legitimate use of tax rules to violation of tax laws. Buttressing further, Brown [10] states that tax avoidance involves arrangement of a transaction in order to obtain a tax advantage, benefit, or reduction in a manner unintended by the tax law.…”

“…Buttressing further, Brown [10] states that tax avoidance involves arrangement of a transaction in order to obtain a tax advantage, benefit, or reduction in a manner unintended by the tax law. When tax avoidance is practice by an organization, cash is retained within the company that otherwise would go to the government [9]. Tax avoidance can be affront to tax administration if it violets core tax principles such as administrative efficiency, fairness, certainty, and convenience.…”

“…Research on the variation in ETR date back to over three decades (see [17,9] for summaries). Zimmerman [18] reports that firm size is positively associated with their ETR consistent with the political cost hypothesis.…”