Ownership Structure and Tax Avoidance: Evidence from Indian SMEs

Farooq, Omar; Zaher, Angie Abdel

doi:10.1142/s0219091520500125

Cited by 5 publications

(2 citation statements)

References 45 publications

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“…Foreign ownership has a positive effect in increasing tax avoidance strategies in Jordan (Alkurdi & Mardini, 2020). Ownership concentration has a negative effect on tax avoidance in small and medium enterprises in India (Farooq & Zaher, 2020). Managerial and institutional shareholders have a positive effect on tax evasion.…”

Section: Types Of Shareholders and Tax Avoidancementioning

confidence: 99%

The Impact of Shareholders, Intellectual Capital, Auditor Reputation, and Liabilities Level on Tax Evasion in Indonesian Manufacturing Companies

Surifah

2023

IJFBS

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This research aims to contribute to solving the problem of tax evasion, by examine the impact of shareholders, intellectual capital, auditor reputation, and level of liabilities on tax evasion. The population is taken from manufacturing companies operating in consumer goods from 2017 to 2021 at IDX (Indonesia). The sample was selected using purposive sampling method. The dependent variable of this research is tax evasion. The independent variables are: type of shareholders, intellectual capital, auditor reputation and level of liabilities. The data analysis technique uses multiple linear regression, and it is processed using statistical software. The results found that domestic private shareholder, foreign private, the government, and individuals’ share holder have a significant negative impact on the Earnings Tax Ratio (ETR), which is a proxy for tax evasion. This means that all types of shareholders seek to avoid taxes, even in state-owned enterprises. Tax avoidance in Indonesia is difficult to eradicate because it is carried out by various parties, specifically tax officers, tax consultants, and taxpayers. The discussion of this research is limited to various factors that influence tax evasion. Subsequent research can identify how much the state loses due to tax evasion, which is carried out by tax officers, consultants, or by taxpayers. This research found that all types of owners avoid taxes. This can be prevented if the Indonesian government can 1) enforce the law, 2) increase the trust of taxpayers, 3) avoid showing off the luxurious life of tax officials and their families. 4) uphold honesty and avoid corrupt behaviour.

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Section: Types Of Shareholders and Tax Avoidancementioning

confidence: 99%

The Impact of Shareholders, Intellectual Capital, Auditor Reputation, and Liabilities Level on Tax Evasion in Indonesian Manufacturing Companies

Surifah

2023

IJFBS

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“…This study makes two important contributions to the academic literature. First, we used a questionnaire to collect primary data, while most of the previous studies related to sustainability reporting and also tax avoidance used secondary data for data collection for instance sustainability reporting [8,39] and tax avoidance [40][41][42][43][44][45]. This study uses strong data from primary data obtained from SME owners in Palembang as respondents in this study.…”

Section: Introductionmentioning

confidence: 99%

The Relationship between Sustainability Reporting, E-Commerce, Firm Performance and Tax Avoidance with Organizational Culture as Moderating Variable in Small and Medium Enterprises in Palembang

et al. 2022

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This study aimed to identify the effect of e-commerce and sustainability reporting on tax avoidance and firm performance, as well as determining whether organizational culture acts as a moderating variable in small and medium enterprises in Palembang, South Sumatera, Indonesia. Agency theory and stakeholder theory were employed as a framework. The questionnaires were distributed online to the owners of small and medium enterprises in Palembang; a sample of 211 respondents completed the questionnaire. Partial least square structural equation model regression was used to test and analyze the hypotheses. The results show that sustainability reporting and e-commerce have a positive effect on tax avoidance, while tax avoidance has a positive effect on company performance. However, organizational culture does not act as moderating variable to strengthen the effect of tax avoidance on company performance.

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Corporate tax avoidance: a systematic literature review and future research directions

Duhoon,

Singh

2023

LBSJMR

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PurposeThe increased interest among academicians to explore more about tax management behavior is evident in the literature on corporate tax avoidance. This paper aims to illustrate the multiple aspects that influence the tax avoidance behavior of corporations and its impacts through the systematic review method.Design/methodology/approachThis study used “Tax Avoidance” OR “Tax Aggressiveness” OR “Tax Planning” as search strings to extract the relevant literature from the Scopus database. This study is a comprehensive analysis of existing literature on corporate tax avoidance behavior. Further, the keyword network analysis has been used to find out the most explored and dry research areas related to corporate tax avoidance behavior using VOSviewer software.FindingsThe study finds that taxation decision is an important managerial decision. Managers adopt tax avoidance tactics to boost postax profits to meet the shareholders’ expectations, particularly of risk-averse shareholders, and sometimes for their benefit also. With this, this study also finds that firms’ characteristics, political connections and corporate social responsibility activities also impact taxation decisions. In addition, the study identifies that tax-avoiding behavior has a contradictory impact on firm value, market growth and corporate transparency disclosure decisions.Research limitations/implicationsThe study assists the researchers by providing a brief overview of tax avoidance behavior, for corporates in understanding the implications of tax avoidance, and for policymakers to fix the taxation loopholes and bring necessary tax reforms.Originality/valueThis study adds to the existing literature by providing a thorough overview of theories, determinants and outcomes of corporate tax avoidance behavior.

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Ownership Structure and Tax Avoidance: Evidence from Indian SMEs

Cited by 5 publications

References 45 publications

The Impact of Shareholders, Intellectual Capital, Auditor Reputation, and Liabilities Level on Tax Evasion in Indonesian Manufacturing Companies

The Impact of Shareholders, Intellectual Capital, Auditor Reputation, and Liabilities Level on Tax Evasion in Indonesian Manufacturing Companies

The Relationship between Sustainability Reporting, E-Commerce, Firm Performance and Tax Avoidance with Organizational Culture as Moderating Variable in Small and Medium Enterprises in Palembang

Corporate tax avoidance: a systematic literature review and future research directions

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