Ethics of Corporate Taxation: A Systematic Literature Review

Scarpa, Francesco; Signori, Silvana

doi:10.1007/978-3-319-68845-9_115-2

Cited by 3 publications

(4 citation statements)

References 75 publications

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“…The literature has explored the relationship between ESG and tax avoidance (Krieg and Li, 2021; Scarpa and Signori, 2023). Studies on this topic can be divided into those finding that ESG performance and tax avoidance act as complements and those finding a substitution between the two.…”

Section: Literature and Hypothesismentioning

confidence: 99%

Negative media coverage of ESG issues and corporate tax avoidance

Menicacci,

Simoni

2024

SAMPJ

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Purpose This study aims to investigate the role of negative media coverage of environmental, social and governance (ESG) issues in deterring tax avoidance. Inspired by media agenda-setting theory and legitimacy theory, this study hypothesises that an increase in ESG negative media coverage should cause a reputational drawback, leading companies to reduce tax avoidance to regain their legitimacy. Hence, this study examines a novel channel that links ESG and taxation. Design/methodology/approach This study uses panel regression analysis to examine the relationship between negative media coverage of ESG issues and tax avoidance among the largest European entities. This study considers different measures of tax avoidance and negative media coverage. Findings The results show that negative media coverage of ESG issues is negatively associated with tax avoidance, suggesting that media can act as an external monitor for corporate taxation. Practical implications The findings have implications for policymakers and regulators, which should consider tax transparency when dealing with ESG disclosure requirements. Tax disclosure should be integrated into ESG reporting. Social implications The study has social implications related to the media, which act as watchdogs for firms’ irresponsible practices. According to this study’s findings, increased media pressure has the power to induce a better alignment between declared ESG policies and tax strategies. Originality/value This study contributes to the literature on the mechanisms that discourage tax avoidance and the literature on the relationship between ESG and taxation by shedding light on the role of media coverage.

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Section: Literature and Hypothesismentioning

confidence: 99%

Negative media coverage of ESG issues and corporate tax avoidance

Menicacci,

Simoni

2024

SAMPJ

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“…1. A more extensive literature review of studies on the ethics of corporate taxation is offered by Scarpa and Signori (2020). …”

Section: Notesmentioning

confidence: 99%

Understanding corporate tax responsibility: a systematic literature review

Scarpa

Signori

2023

SAMPJ

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Purpose This study aims to contribute to the debate about the place of corporate taxation in corporate social responsibility (CSR) by reviewing the present state of research, offering a comprehensive understanding of the content and dimensions of corporate tax responsibility (CTR) and discussing further developments in research and action. Design/methodology/approach The study builds on a systematic literature review of 117 theoretical and empirical papers on tax within the broad field of CSR published in peer-reviewed academic journals and books. Findings The analysis unfolds and discusses the construct of CTR and proposes a unified conceptualisation that elucidates for what firms are (or should be) held accountable on tax matters and the different dimensions (i.e. instrumental, political, integrative and ethical) which justify greater tax responsibility and enable its achievement. Practical implications The results can provide companies with practical guidance to enhance their tax responsibility and can give stakeholders and policymakers suggestions for new mobilisation strategies to achieve more responsible tax behaviour. Social implications Corporate tax payments are a fundamental dimension of CSR, as they fund public goods and services and reduce the unequal distribution of wealth. Providing a more structured understanding of CTR, this paper can contribute towards attaining more responsible tax outcomes which can better serve and benefit the whole society. Originality/value This study offers a structured overview of the present state of tax research in CSR, while providing a comprehensive understanding and conceptualisation of the construct of CTR, thus enabling scholars to situate their work and develop further relevant research in this field.

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“…The literature on tax evasion addresses the moral aspects in question. However, some relevant studies have been presented mainly in the fields of philosophy and theology (Mihir and Dhammika, 2009; Harrison and Wicks, 2013; Donaldson and Walsh, 2015; Scarpa and Signori, 2020). First, the optimal taxation theory presents the fiction of a benevolent state that must achieve a well-determined level of tax revenue by maximising the welfare of citizens.…”

Section: Introductionmentioning

confidence: 99%

“…The main objective of the scenario method is the interpretation of the respondent's imagination through its open-ended form that leads the individual to present two different reactions; they either criticise the situation or imagine a specific behaviour in the face of a situation (Finch, 1987). This method has been frequently used in the fields of sociology and psychology (Harrison and Wicks, 2013; Scarpa and Signori, 2020).…”

Section: Introductionmentioning

confidence: 99%

Social responsibility and tax evasion: organised hypocrisy of Tunisian professionals

Dammak

Derbel

2023

JAAR

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PurposeThe present work aimed to present the perception of Tunisian professionals towards companies engaged in social responsibility practices and describe the tax evasion strategies of socially responsible Tunisian companies following the coronavirus disease 2019 (COVID-19) pandemic (COVID-19) shock.Design/methodology/approachA survey was sent to 119 Tunisian tax administration auditors. Data analysis methods principal component analysis (PCA) and regression analysis were used. The data were collected through a questionnaire after the general containment of Tunisia from September 2020 to February 2021. These quantitative data were analysed using processing software (STATA).FindingsProfessionals of the tax authorities, particularly those in charge of the audit mission, aim for corporate profitability from the perspective of stakeholders that seek to integrate ethics and social responsibility into companies and consider employee morale a top priority. The results show that highly ethical and socially responsible professionals are far from practising aggressive strategies. Thus, an auditor from the tax administration is far from engaging in social responsibility to justify fraudulent acts. During the COVID-19 period, the role of these professionals was to prevent and detect fraud in the tax sector to fight corruption and investigate taxes based on sound regulations.Research limitations/implicationsThe results are consistent with optimal taxation theory, which postulates that a tax system should be chosen to maximise a social welfare function subject to a set of constraints. Professionals seek to make taxation much simpler for taxpayers by providing advice and consultation to manage tax obligations. The minimisation of tax or the play of tax values requires expertise in the field to respect legal constraints. Therefore, these professionals play a crucial role in tax collection, as the professionals' advice and suggestions can influence taxpayers' decision-making.Practical implicationsIn recent years, academic researchers, policy makers and the public have become increasingly interested in corporate tax evasion behaviour. At the same time, companies are under increasing pressure to integrate CSR into the companies' decision-making processes, which has led to increased academic interest in CSR. Opportunistic tax minimisation reduces state resources and funds needed for government programmes to improve the social welfare of the entire community. This study represents an overriding concern not only for legal and tax authorities and companies, but also for shareholders and stakeholders.Originality/valueThe authors' study contributes to the existing literature by determining the state of play on corporate social responsibility (CSR) practices amongst Tunisian tax authorities' professionals. In Tunisia, an executive of the tax authorities in charge of the verification mission is required to verify the proper application of the accounting and tax legislation in force, follow up on tax control operations on declared taxes and validate the sincerity of the accounts. This study focussed on the tax evasion of companies engaged in social responsibility practices according to the judgements of Tunisian tax authorities' auditors during the global COVID-19 pandemic.

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Ethics of Corporate Taxation: A Systematic Literature Review

Cited by 3 publications

References 75 publications

Negative media coverage of ESG issues and corporate tax avoidance

Negative media coverage of ESG issues and corporate tax avoidance

Understanding corporate tax responsibility: a systematic literature review

Social responsibility and tax evasion: organised hypocrisy of Tunisian professionals

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