Does Tax Avoidance Diminish Sustainability?

Saka, Chika; Oshika, Tomoki; Jimichi, Masayuki

doi:10.2139/ssrn.3061565

Cited by 4 publications

(4 citation statements)

References 52 publications

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“…Nonetheless, it is a widely used tax avoidance measure that is easily accessible in the tax footnotes of a firm's annual reports. Since GAAP ETR is easily identifiable by those without financial expertise, it is widely used by the media, which has an influence on stakeholders (Saka et al, 2017). Therefore, GAAP ETR, reflecting aggressive tax planning through permanent book-tax differences, is used here.…”

Section: Visualization Of Tax Avoidancementioning

confidence: 99%

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Visualization of tax avoidance and tax rate convergence

Saka

Oshika²,

Jimichi

2019

MEDAR

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Purpose This study aims to explore the evidence of the probability of firms’ tax avoidance and the downward convergence trend of national statutory tax rates and firms’ effective tax rates. Design/methodology/approach This research employs exploratory data analysis using interactive data manipulation and visualization tools, namely, R with SparkR, dplyr, ggplot2 and googleVis (GeoChart and Motion Chart) packages. This analysis is based on the world-scale accounting data of all listed firms from 148 countries spanning 30 years. Findings The results reveal the following: three types of evidences on probability of firms’ tax avoidance, showing a non-random distribution of firms’ effective tax rates and return on assets, cross-sectional variation of firms’ effective tax rates in each country, and the trend of difference between effective tax rates and statutory tax rates, and the downward convergence trend of statutory tax rates and firms’ effective tax rates. Practical implications The results highlight the prominent issues of world-scale tax avoidance and tax rate competition and facilitate a collaborative discussion between laymen and professionals using objective evidence. Originality/value A novel methodology is adopted through the visualization of world-scale accounting data, which can facilitate a new perspective, revealing unexpected patterns and trends in otherwise hidden information. This study also highlights the importance of global consideration of firms’ tax avoidance and tax rate competition, using objective evidence.

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Section: Visualization Of Tax Avoidancementioning

confidence: 99%

“…Visualization is an internal cognitive activity located between information and knowledge. Figure 1 presents the position of visual representation and the visualization in Shedroff's continuum of understanding (Saka and Jimichi, 2017).…”

Section: Visualizationmentioning

confidence: 99%

Visualization of tax avoidance and tax rate convergence

Saka

Oshika²,

Jimichi

2019

MEDAR

Self Cite

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“…Perspektif teori keagenan menyiratkan bahwa pajak penghasilan badan digambarkan sebagai beban yang signifikan khusunya bagi pemegang saham, sehingga melalui sudut pandang ini penggunaan tax avoidance perusahaan jelas bermanfaat (Saka et al 2017). Fenomena teori agensi Jensen dan Meckling (1976) percaya bahwa pemilik perusahaan yang memperkerjakan agent dapat menciptakan konflik, dimana dalam hal pemaksimalan utilitas masing-masing individu maka agent akan dapat melaporkan apa yang telah dicapainya tetapi tidak sesuai dengan keberadaan sesungguhnya dengan didasarkan oleh kepentingan pribadinya (Annisa dan Kurniasih 2017).…”

Section: Pendahuluanunclassified

Peran Ukuran Perusahaan Memoderasi Pengaruh Risiko Pajak Perusahaan Terhadap Penghindaran Pajak

Purbolakseto

Tjahjadi²,

Tjaraka³

2022

JEAM

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This study aims to analyze the effect of Tax Risk on tax avoidance moderated by company size in basic materials companies listed on the IDX in 2017-2021. The number of samples used in this study were 29 companies with purposive sampling technique. The type of data used is secondary data. This study uses a quantitative approach with data analysis methods and hypothesis testing using panel data regression analysis. The proxy used for tax avoidance is Total book-tax differences (BTD) while the proxy for tax risk is CETR volatility. The results showed that tax risk had a negative effect on tax avoidance. Meanwhile, firm size is able to moderate the effect of tax risk on tax avoidance. Keywords: Tax Risk, Tax Avoidance, Firm Size.

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“…Sustainability also demands changes in human tax behaviour and corporate tax behaviour, and from this perspective, exploring consumer and individual behaviour [3] is gaining importance. Tax aggressiveness, tax avoidance and unethical tax behaviour [4] from either companies [5,6] or individuals diminish the tax system's sustainability [7]. Therefore, personal attitudes and personal values towards paying taxes are crucial to collect taxes in a proper and fair way.…”

Section: Introductionmentioning

confidence: 99%

Is There a Relationship between Self-Enhancement, Conservation and Personal Tax Culture?

2023

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Sustainability gets higher on the policy agenda of many countries in terms of the UN Sustainable Development Goals. Unethical tax behaviour diminishes the tax system’s sustainability, but paying taxes is necessary if we want to contribute to society. There is a deeper need to understand the factors that influence taxpayers’ perceptions, personal values and personal tax culture. Previous research by the OECD (2013, 2019) using the World Values Survey (WVS) did not provide a sufficient explanation of all the socio-economic factors associated with personal tax culture. As the behaviour of an individual is shaped by a set of values, and values can provide predictive and explanatory power in the analysis of attitudes, opinions and actions by policymakers, it is necessary for them to understand such when proposing tax morale incentives within the institutional pillar. A literature review showed that the research topics on personal tax culture present specific assumptions and gaps. To contribute to this topic, a conceptual model was developed, and the relationship between personal values (conservation/self-enhancement), measured by the widely accepted and recognised Schwartz’s circular model, and personal tax culture was analysed with the aim of formulating recommendations for policymakers. The survey conducted in Slovenia involved 202 respondents. Based on exploratory factor analysis and the performed correlation analysis, empirical research suggests that a relationship between personal values and personal tax culture as the cornerstones of an individual’s tax-compliant behaviour and their attitude towards the ethics of tax evasion is significant. The correlation between personal values and an individual’s attitude towards the tax system is insignificant. By understanding the relationships between individuals’ personal and tax culture values, policymakers can achieve a greater sustainable tax system.

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Does Tax Avoidance Diminish Sustainability?

Cited by 4 publications

References 52 publications

Visualization of tax avoidance and tax rate convergence

Visualization of tax avoidance and tax rate convergence

Peran Ukuran Perusahaan Memoderasi Pengaruh Risiko Pajak Perusahaan Terhadap Penghindaran Pajak

Is There a Relationship between Self-Enhancement, Conservation and Personal Tax Culture?

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