Taxing Thyssen transnationally?

Purpose: The aim of the study was to assess the relationship between tax incentives and corporate tax avoidance strategies in Kenya.
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: The relationship between Tax Incentives and Corporate Tax Avoidance Strategies in Kenya has been a subject of research. Findings indicate that while tax incentives are intended to promote economic growth and investment, they can also create opportunities for corporate tax avoidance. Companies in Kenya have sometimes leveraged these incentives to reduce their tax liabilities through legal but aggressive tax planning strategies, potentially leading to reduced government revenue.
 Implications to Theory, Practice and Policy: Agency theory, resource dependence theory and political economy theory may be use to anchor future studies on assessing relationship between tax incentives and corporate tax avoidance strategies in Kenya. For practitioners, understanding how tax incentives and avoidance strategies vary across industries is essential. Policymakers should actively engage in global collaboration to address tax avoidance by multinational corporations. International tax policy reforms and coordinated efforts are needed to create a fair and transparent global tax environment that discourages aggressive tax avoidance.

Taxes are the largest source of state revenue which functions as a source of funds intended for financing government expenditures and as a tool to regulate and implement policies in the social and economic fields and are used for the greatest welfare of the people. Therefore, corporate and individual taxpayers are expected to comply with their tax obligations voluntarily and comply with tax regulations. Taxpayer non-compliance can cause disruption to State finances. One of the ways of non-compliance is done by means of tax avoidance. The objectives of this study are as follows: 1) To find empirical evidence regarding the effect of independent boards of commissioners on tax avoidance; 2) Finding empirical evidence regarding the effect of the audit committee on tax avoidance; 3) Finding empirical evidence regarding the effect of audit quality on tax avoidance; 4) Finding empirical evidence regarding the effect of disclosure of corporate social responsibility on tax avoidance; 5) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between independent boards of commissioners and tax avoidance; 6) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between the audit committee and tax avoidance; 7) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between audit quality and tax avoidance; and 8) Finding empirical evidence regarding the extent to which firm size can moderate the relationship between disclosure of corporate social responsibility and tax avoidance. This type of research used in this research is casual associative research (causal associative research). The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange for the 2015-2019 period. The sample selection was done by using purposive sampling method. The analytical method used to test the hypothesis is Moderated Regression Analysis (MRA). The results showed that: 1) The independent board variable has no effect on tax avoidance in a positive direction; 2) The audit committee variable has no effect on tax avoidance in a negative direction; 3) The audit quality variable has no effect on tax avoidance in a negative direction; 4) The variable of corporate social responsibility disclosure has a negative effect on tax avoidance; 5) The size of the company is able to moderate the relationship between the independent board of commissioners and tax avoidance in a negative direction; 6) The size of the company is unable to moderate the relationship between the audit committee and tax avoidance in a negative direction; 7) The size of the company is not able to moderate the relationship between audit quality and tax avoidance in a positive direction; and 8) Company size is able to moderate the relationship between disclosure of corporate social responsibility and tax avoidance in a negative direction.

The research is about to test and analyze the impact of foreign ownership, capital intensity, and transfer prices on tax avoidance and to test and analyze the impact of companies' size in moderating foreign ownership, capital intensity, and transfer prices on the tax avoidance listed in the Indonesian stock exchange. Variables used in this study are foreign ownership, capital intensity, and transfer prices as independent variable, tax avoidance as a dependent variable, and company size as a moderate variable. Selection of samples in this study used a factoring method to the established criteria, allowing 27 companies to acquire six years, the total sample used is 162 data. The type of data used is a secondary data obtained from the company's annual financial statements of 2016-2021. The method of data analysis used are panel data analysis, descriptive statistic analysis, classic assumptions test, multiple and moderate regression tests, and hypothetical testing with the help of Eviews 12. Purpose – The objective to be achieved in this study are as follows (1) To test and analyze the effect of foreign ownership on tax avoidance. (2) To test and analyze the effect of capital intensity on tax avoidance. (3) To test and analyze the effect of transfer prices on tax avoidance. (4) To test and analyze whether company size moderates foreign ownership against tax avoidance. (5) To test and analyze whether the size of the company moderates the capital intensity against tax avoidance. (6) To test and analyze whether the size of the company moderates the transfer price against tax avoidance. Design/methodology/approach – This research method used is a quantitative method. Findings – The results of the research: (1) Foreign ownership has a positive effect on tax avoidance; (2) Capital intensity negatively affects tax avoidance; (3) Transfer prices negatively affect tax avoidance; (4) Company size weakens the influence of foreign ownership on tax avoidance; (5) Company size weakens the effect of capital intensity on tax avoidance; (6) Company size weakens the effect of transfer pricing on tax avoidance. Research limitations/implications – (1) There are some companies that display the details of their company's share ownership, but for foreign shareholding, many companies do not have foreign shares and do not even display details. (2) Not many companies display related receivables on assets, making it difficult for researchers to calculate transfer prices. (3) The results of this study show that not all variables have a positive and significant effect, where there is a possibility of human error at the time of data tabulation. Practical implications – Foreign ownership, capital intensity and transfer prices are among the factors influencing tax avoidance. Companies that have foreign ownership will influence the company's policy regarding tax avoidance, the greater the portion of foreign ownership in the company the more it will avoid taxes because foreign shareholders who dominate an issuer will influence management in determining policies that will benefit them such as the company's policy to pay taxes. The higher the intensity of fixed assets owned by the company, the higher the possibility of the company to avoid taxes by utilizing depreciation expenses that will affect tax payments and companies that transfer profits to affiliates located in other countries that have smaller rates or even do not charge tax rates by taking advantage of loopholes in tax regulations.

Discussion of Dhaliwal, Goodman, Hoffman, and Schwab (2019): Revisiting Tax-Related Reputational Costs

The paper aims to understand the impact of corporate ownership structure on tax avoidance in Asian contexts. The ownership structure in Asia is concentrated in one group of shareholders, which enables this shareholder to have a significant influence on tax avoidance. This research mainly reviews published research articles. Search terms, such as ownership, tax avoidance, and tax aggressiveness were used in the search function in all fields of the papers from Scopus and Web of Science databases. This study captured nine pieces of empirical research after applying several filtrations (inclusion and exclusion) in the article search. Most of selected researches were conducted in China, while some in Southeast Asia. There are four review questions in this research, namely: (1) How do shareholders influence tax avoidance levels in Asia; (2) What is the best way to measure the level of ownership and tax avoidance; (3) What type of corporate owners do scholars study the most and the least; (4) What are the methodological gaps in the research topic (corporate ownership and tax avoidance) that future scholars should be aware of. The paper finds that different shareholders behave differently towards tax, and the behaviour is according to the host country’s attributes, such as country settings, national tax policy, and investor protection levels. The study primarily helps governments and regulators understand the motives and techniques shareholders apply to avoid tax. Furthermore, it also provides repeatable methodological guidance in detail for future researchers to conduct a systematic literature review and for research students to formulate their hypothesis on the relationship between ownership structure and tax avoidance.

Taxes are the main source of state income and reception, and are used to increase the prosperity and welfare of the people as a whole. The income tax collection system currently provides loopholes for taxpayers to prepare reports on tax payments to a minimum as long as they do not deviate from the applicable legislation.Important issues in taxation include awareness of paying taxes, tax paying behavior, obedience in paying taxes and tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. In connection with this research conducted aims to examine empirically about: (1) The moral-ethics effect of income tax on tax avoidance, and (2) Socio-demographic relations on the moral-ethical influence of income tax on tax avoidance. The data needed in this research is obtained from a questionnaire filled in by the income taxpayer sample registered at the KPPP Padang, which consists of 100 taxpayers. The collected data was analyzed using simple and multiple linear regression tests and the MRA (Moderating Regression Analysis) test for moderating variables. The research results obtained are (1) Moral-ethics of income tax affects the intention of personal taxpayers to carry out tax avoidance income tax. (2) Socio Demography does not moderate the relationship between moral-tax ethics and personal taxpayer intentions to carry out tax avoidance income taxes. (3) Moral-Ethics of Income Tax and Socio-Demographic influence together towards Tax Avoidance. In addition Socio Demography is proven only as an independent variable (predictor) in relation to Tax Avoidance.

How Tax Enforcement Disparately Affects Domestic Corporations Around the World

The study examined the moderating effect of managerial ownership on the relationship between firm attributes and tax avoidance in Nigerian listed oil and gas firm for the period of 2011-2020. Secondary data were extracted from the financial reports and accounts of the companies. The study employed Generalized Least Square (GSL) estimator of the regression model. Study revealed that leverage has positive significant effect on tax avoidance. The study reported that board financial expertise has positive and significant impact on tax avoidance. The study documented that managerial ownership has significant positive impact on tax avoidance. Similarly, managerial ownership positively and significantly moderates the relationship between firm size and tax avoidance. The study recommends that, the board of directors in the oil and gas firms in Nigeria should ensure that shareholding of the insider managers is increase in such a way that the proportion of their shareholding should be minimal which should not be less than 20% of the total shareholding in the company as it was found being among the factors that increase tax avoidance. Doing this will encourage managers to put more effort to work toward improving firm performance. The study also recommends that as leverage improve tax avoidance, firms should obtain more debt than equity to advantage of interest on loan which is tax deductible. Since board financial expertise increase tax avoidance, firm should encourage for inclusion of financial expertise as member of board of director in order to take decision on tax issues which will benefit the company.

EPERTS are regularly called on for advice on legal matters. Yet little is known either about when such advice is sought or about the expert's influence on compliance with the law. As lawyers are the primary source of expert legal advice, legal scholars have been particularly attentive to the effects of legal advice on behavior but have had difficulty moving beyond speculation. Heinz observed: "To provide any reasonable definite answers to questions posed concerning the influence of lawyers ... one would need to have some measures of the nature of the relationships and interaction between lawyers and clients, including indices of lawyer influence."' Shavell recently analyzed the decision to consult a lawyer and the effect of the lawyer on legal compliance, but his focus was entirely theoretical.2 In this article, we assemble the empirical evidence urged by Heinz for one prominent area of legal compliance in which expert advice is commonly sought-tax-return preparation. We use the evidence to analyze both theoretically and empirically the types of tax-

This study aims to provide empirical evidence that there is an influence of foreign ownership structure and the foreign board of commissioner against tax avoidance. In addition, the study Also tested based on tax avoidance tax incentives and non-tax incentives. The dependent variable in this study is tax avoidance is measured using five proxies items, namely the effective tax rate (ETR), cash effective tax rate (CETR), the book-tax difference (BTD), tax expenses to operating cash flow (TEOCF), and Tax Paid to Operating Cash Flow (TPOCF). The independent variables are foreign ownership structure, the foreign board of commissioner, tax incentives (profitability) and non-tax incentives (leverage and firm size). The theory tested in this research is the legitimacy theory. The sample of this research is the non-financial sector 53 companies listed in Indonesia Stock Exchange from 2012 to 2016. Data collection method using a purposive sampling technique.The method of analysis in this study using multiple linear regression analysis. The results of this study indicate that the structure of foreign ownership effect on tax avoidance through proxy ETR and CETR. The Board of Commissioners has an effect on tax avoidance through the proxy of TEOCF and TPOCF. Profitability has an effect on tax avoidance through proxy CETR, TEOCF, and TPOCF. Leverage Affects tax avoidance through proxy ETR, TEOCF, BTD, and TPOCF. Company size has no effect on tax avoidance. The results of this study will be useful for Academics to PROVE that foreign ownership structures and the foreign board of Commissioners are Able to limit tax avoidance measures, investors in decision-making, regulators in regards to the presence of the foreign board of Commissioners, as well as Researchers for future reference

PurposeThe purpose of this paper is to investigate the relationship between tax avoidance and the cost of debt and the moderating roles of financial constraints and information asymmetry. It also examines a potential nonlinear effect of tax avoidance on the cost of debt.Design/methodology/approachThe sample covers 3,732 firm-year observations in France from 2009 to 2020. This paper uses Prais–Winsten and ordinary least squares regressions to examine the effect of tax avoidance on the cost of debt.FindingsThe results show a negative effect of corporate tax avoidance on the cost of debt, suggesting that companies using tax avoidance strategies tend to incur lower borrowing costs. Furthermore, the results reveal a U-shaped relationship between tax avoidance and the cost of debt. However, beyond a threshold, aggressive tax practices, coupled with increased information asymmetry, result in a positive association between tax avoidance and the cost of debt. The results also show that the negative effect of tax avoidance on the cost of debt is more prevalent when firms are less financially constrained and incur low levels of information asymmetry.Research limitations/implicationsOne of the limitations of this study is that the results are based on a single country. The results might not be generalizable to other institutional settings.Practical implicationsWhile tax avoidance can help reduce the cost of debt, it is crucial for companies to ensure that their tax strategies comply with laws and regulations. Lenders should carefully assess the tax practices of borrowing companies and their information asymmetry to evaluate firm risk and adjust their cost of debt.Originality/valueThis research extends previous studies by investigating the nonlinear association between tax avoidance and the cost of debt. While previous research primarily focused on linear relationships, this study delves into the complexity of the relationship, offering a more comprehensive understanding of how tax avoidance affects the cost of debt.

Abstract— This paper investigates the influence of Islamic Corporate Social Responsibility (ICSR), Islamic Corporate Governance (ICG), profitability, and bank size on tax avoidance in Islamic Commercial Banks in Indonesia. This paper introduces a novel perspective on the factors contributing to tax avoidance within Indonesia's Islamic finance framework. While the general notion of tax management is recognized, this study innovatively explores the intersection of Islamic principles, corporate governance, and tax practices, providing insights that have not been adequately explored in prior research. The study employs a panel data regression analysis, utilizing data from 13 Islamic Commercial Banks spanning 2017-2022, totaling 58 observations. This research approach enables an in-depth investigation into the relationships between ICSR disclosure, ICG, profitability, bank size, and tax avoidance. The empirical findings indicate that ICSR disclosure, the proportion of independent commissioners, and the audit committee positively influence tax avoidance practices. Conversely, the Sharia Supervisory Board and bank size negatively correlate with tax avoidance. Surprisingly, as measured by Return on Assets (ROA), profitability does not significantly impact tax avoidance decisions. This study underscores the intricate connections between Islamic corporate practices, governance structures, and tax avoidance strategies in Islamic Commercial Banks. The research highlights the significance of ICSR disclosure, corporate governance effectiveness, and the presence of religious oversight in shaping transparent and accountable tax practices. Furthermore, the research cautions against overreliance on profitability as a determinant of tax avoidance behaviors.
 Keywords: Bank Size; Islamic Corporate Governance, Profitability; Islamic Corporate Social Responsibility; Tax Avoidance

PurposeTax avoidance has been extensively examined in the literature, yet the role of corporate corruption risk as a key determinant remains overlooked. This study investigates the impact of corporate corruption risk on tax avoidance while highlighting the moderating role of board gender diversity.Design/methodology/approachA dataset comprising 455 annual observations from French companies listed on the CAC 40 index from 2010 to 2022 was used to test the model using panel data and multiple regressions. This paper considered the feasible generalized least squares (FGLS) estimation for linear panel data models. A multiple regression model is used to analyze the moderating effect of gender diversity on the association between corporate corruption risk and tax avoidance. For robustness analyses, we included the alternative CASH_ETR as a measure of the dependent variable.FindingsThe findings indicate that corporate corruption risk positively affects tax avoidance practices. Conversely, gender diversity on boards negatively impacts tax avoidance, with the presence of women moderating the relationship between corruption risk and tax avoidance, transforming a positive correlation into a negative one for companies with higher gender diversity.Practical implicationsThis study highlights the critical role of gender diversity in enhancing corporate governance and mitigating unethical tax avoidance practices. It offers actionable insights for executives to improve corporate responsibility and public trust, while also guiding policymakers in promoting board diversity through targeted initiatives. By fostering inclusivity, boards can effectively reduce corruption risks and align tax practices with ethical and regulatory standards, contributing to more transparent governance across industries.Originality/valueTo the best of our knowledge, this study is the first to investigate the combined effect of corporate corruption risk and board gender diversity on tax avoidance within CAC 40 firms. While prior literature has predominantly focused on CSR or national-level corruption, corporate corruption risk has remained an often-overlooked yet critical determinant of tax behavior. The internal climate of corruption can significantly influence firms’ tax avoidance strategies, turning them into opportunistic behaviors that undermine both financial transparency and corporate governance. By examining this relationship through agency and institutional theories, and in light of France’s strengthened anti-corruption and gender diversity regulations (notably the Sapin II and Copé-Zimmermann laws), our study highlights the key role of gender-diverse boards in mitigating aggressive tax practices linked to corruption risk. This research contributes to a deeper understanding of how governance mechanisms can shape corporate tax behavior, addressing an important gap in the existing literature.

Understanding the relationship between tax avoidance and earnings management is crucial to evaluating tax policies and ensuring transparent financial reporting. Prior research has highlighted complexities and inconsistent findings, particularly concerning the impact of tax-related reporting incentives. This study addresses these issues by examining the influence of tax incentive recipient status on tax avoidance and earnings management among firms listed on the Kuala Lumpur Stock Exchange (KLSE). It examines whether firms receiving tax incentives from the Malaysian Investment Development Authority (MIDA) exhibit different earnings management behaviours than non-recipient firms. This study employs the effective tax rate (ETR) as a measure of tax avoidance and discretionary accruals (DEM) for earnings management. The dataset includes manually extracted financial information from firms listed on the KLSE for the financial year 2017 and a listing of tax incentive recipient firms from MIDA. Analytical techniques include ANOVA, independent samples t-test, and multiple regression analysis. The findings of this study suggest that higher tax avoidance relates to higher earnings management. Additionally, firms receiving tax incentives exhibit significantly higher ETRs than non-recipients. They are less likely to engage in earnings management, suggesting that tax incentives may deter aggressive financial reporting practices due to compliance pressures. The additional analysis indicates that tax incentives do not significantly moderate the relationship between tax avoidance and earnings management, implying that other pressures still play a crucial role. This study contributes to existing knowledge by emphasizing the need for robust regulatory frameworks that balance economic growth and financial reporting integrity.

Companies are increasingly resorting to tax avoidance, a strategy aimed at reducing the tax burden within the law, to accumulate more capital. Understanding the drivers of tax avoidance is crucial for both regulatory bodies and businesses, particularly in a climate of heightened scrutiny of corporate behaviour. This study examines the intricate relationships between profitability, solvency, good corporate governance (GCG), and tax avoidance. The study focuses on firms in the energy sector listed on the Indonesia Stock Exchange (IDX) between 2021 and 2023. The research adopts a quantitative design, which allows for examining causal relationships between variables. The study examines how tax avoidance is impacted by profitability and solvency as independent factors, with sound corporate governance serving as a moderating variable. The information used for analysis came from secondary sources, specifically the audited annual financial statements of the selected energy sector companies, which were accessed from the IDX website. Structural Equation Modeling (SEM) with a Partial Least Squares (PLS) approach was employed for data analysis. he findings indicate that profitability has a significant negative impact on tax avoidance, while solvency exhibits a positive but insignificant effect. Furthermore, good corporate governance does not mitigate the association between tax avoidance and profitability or solvency. This research provides valuable insights for financial management within the energy sector, emphasizing the need for a deeper comprehension of the relationship between tax avoidance and profitability and solvency, alongside the necessity for good corporate governance practices to enhance transparency, and suggests that tax regulations should be adjusted to account for the effects of profitability on tax avoidance behaviour. The results suggest that, despite the limited influence of governance mechanisms in moderating tax avoidance, companies should still strive to enhance governance practices and transparency. By integrating strong tax compliance measures and a commitment to ethical conduct, companies can reduce their exposure to the reputational and legal risks associated with tax avoidance, even if governance does not directly moderate their tax behaviours.