Aggressive Tax Avoidance, Corruption, and Good Governance

DOI

10.2991/aebmr.k.200410.022How to use a DOI?

Keywords

aggressive tax avoidance, corruption, good governance

Abstract

Purpose: This study has to main purposes; first it is to examine the relationship between aggressive tax avoidance and corruption, second is to examine the moderating effect of good governance implementation on the relationship between aggressive tax avoidance and corruption. Design/methodology/approach: A sample of 840 ASEAN companies publicly-listed from 2015-2018. This study used aggressive tax avoidance model analysis with ETR, C-ETR, and BTD measurements. Findings: This study found a positive relationship between aggressive tax avoidance and the level of corruption. This study also proved the effect of good governance on the weakening of the relationship between aggressive tax avoidance and corruption empirically. Research limitations/implications: These research findings are in line with the context of public-listed ASEAN countries which may have different implications on unlisted companies. Unlisted companies are beyond the scope of this study. This study has implications for the importance of more specific anti-tax avoidance policies in order to reduce state losses due to tax avoidance practices that are influenced by the effects of tax policies in ASEAN-4 countries, and also policies that can prevent corrupt practices by strengthening good government governance implementation. Originality/value: This study offers a new perspective on good governance research. First, from the view of corporate governance, and second, from a view of governance. This study has important implications for developing an aggressive anti-tax avoidance policy that is more specific to reducing state losses due to tax avoidance practices and also effective corruption control mechanisms in reducing aggressive tax avoidance practices.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Mohamad Khoiru Rusydi
PY  - 2020
DA  - 2020/04/13
TI  - Aggressive Tax Avoidance, Corruption, and Good Governance
BT  - Proceedings of the 3rd Asia Pacific International Conference of Management and Business Science (AICMBS 2019)
PB  - Atlantis Press
SP  - 139
EP  - 154
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200410.022
DO  - 10.2991/aebmr.k.200410.022
ID  - Rusydi2020
ER  -