scholarly journals Good Tax Governance: A Matter of Moral Responsibility and Transparency

2017 ◽  
Vol 2017 (1) ◽  
pp. 70-88 ◽  
Author(s):  
Hans J.L.M. Gribnau ◽  
Ave-Geidi Jallai
Keyword(s):  
Multinational Corporations ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Moral Leadership ◽  
Current Debate ◽  
Planning Strategy ◽  
The Difference ◽  
Mind Set ◽  
Corporate Social

Abstract Multinational corporations’ tax practices are hotly debated nowadays. Multinationals are accused of not paying their fair share of taxes. Apparently, acting within the limits set by law is not sufficient to qualify as morally responsible behavior anymore. This article offers ethical reflection on the current debate. The general public typically evaluates (aggressive) tax planning in moral terms rather than legal terms. Therefore, multinationals need to reflect on their tax planning strategy next to economic and legal terms also in ethical terms. This article addresses the relationship between society, morality and taxes. The concepts of tax planning, “aggressive tax planning”, “tax evasion” and “tax avoidance” are elaborated on to exemplify the difference between a purely legal and broader approach. In moral terms, aggressive tax planning may imply loss of integrity and trust which may entail certain costs for businesses, such as reputation damage. It will be argued that in order to improve corporate reputation and (moral) leadership, corporate social responsibility (CSR), endorsed by many corporations around the globe, is a helpful tool. Reflection on tax planning in the context of CSR - good tax governance - should foster a moral mind set and enhance accountability and transparency.

IKEA’s Organizational Structures

2019 ◽  
Vol 16 ◽  
pp. 275-282
Author(s):  
Christophe Van Linden ◽  
Marilyn Young ◽  
Rachel Birkey ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Evasion ◽  
Tax Avoidance ◽  
Organizational Structures ◽  
Tax Planning ◽  
Multinational Group ◽  
Ethical Perspective ◽  
Business Decisions ◽  
Corporate Social

This teaching case is based on the multinational group IKEA, which designs and sells ready-to-assemble furniture. The case is a useful classroom exercise to identify the link between business decisions and their tax implications. The case questions challenge students to consider the differences in tax planning, tax avoidance, tax mitigation and tax evasion. The facts provide a timely and relevant setting to discuss global dimensions of taxation and corporate social responsibility from an ethical perspective.

scholarly journals TAX HEAVENS PHENOMENON: TAX PLANNING STRATEGY OR TAX AVOIDANCE

2020 ◽  
Vol 4 (1) ◽  
pp. 1-24
Author(s):  
Dinik Fitri Rahajeng Pangestuti ◽  
Nisrina Sari ◽  
Ambar Lestari
Keyword(s):  
Data Exchange ◽  
Tax Avoidance ◽  
Tax Planning ◽  
The Other ◽  
Planning Strategy ◽  
Exchange Of Information ◽  
Small Countries ◽  
Negative Effect ◽  
The Government ◽  
Fiscal Authority

Abstract Tax planning is one example of the use of regulatory loopholes. On the other hand for the Fiscal Authority, carrying out tax avoidance practices as a form of tax planning will have a negative effect on the Government and, for this reason, the Government makes fiscal corrections as its remedial. Many also hide their assets in tax heavens countries. This is so that the assets they have are not taxed. Tax heavens countries are usually small countries that apply very low taxes, some even do not impose taxes at all. However, the government has prepared an Automatic Exchange of Information (AEoI) data exchange plan that occurs in 2018, certainly will make tax evaders unable to run away from the pursuit of the tax authorities, even if they have to flee to tax heavens countries (tax heavens). Keywords: tax heavens, tax planning, Automatic Exchange of Information (AEoI)   Abstrak Perencanaan pajak adalah salah satu contoh penggunaan celah peraturan. Pada sisi lain bagi Otoritas Fiskal, melakukan praktik penghindaran pajak sebagai bentuk perencanaan pajak akan membawa efek negatif bagi Pemerintah dan, untuk itulah, Pemerintah melakukan koreksi fiskal sebagai remedialnya. Banyak juga yang menyembunyikan asetnya di negara-negara tax heavens. Hal ini bertujuan agar aset yang mereka punya tidak terkena pajak. Negara tax heavens biasanya merupakan negara kecil yang menerapkan pajak yang sangat rendah, bahkan ada yang tidak mengenakan pajak sama sekali. Namun, pemerintah telah menyiapkan Rencana pertukaran informasi data perbankan secara otomatis (Automatic Exchange of Information/AEoI) yang terjadi pada 2018, dipastikan akan membuat para pengemplang pajak tidak akan bisa lari dari kejaran otoritas pajak, sekalipun mereka harus kabur ke negara surga pajak (tax heavens). Kata kunci: Tax Heavens, Tax Planning, Automatic Exchange of Information (AEoI)

What's in a Name?

2022 ◽  
pp. 228-242
Author(s):  
Larissa Batrancea
Keyword(s):  
Tax Evasion ◽  
Ethnic Diversity ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Factors Influencing ◽  
The Difference ◽  
The Impact ◽  
Complex Matter

The topic of tax behavior always stirs attention among scholars, professionals, national and international authorities, organizations, and citizens alike since it is a complex matter. There are four types of tax behavior acknowledged in the literature, namely voluntary tax compliance, enforced tax compliance, tax avoidance, tax evasion. The complexity of tax behavior stems from the fact that there are a manifold of factors influencing it, from economic to psychological ones. The chapter surveys relevant sources on tax behavior in the quest for eliciting the impact of ethnic diversity on tax compliance. At the same time, the difference between countries are also addressed.

Tax Avoidance and Tax Evasion: The Indian Case

1987 ◽  
Vol 21 (2) ◽  
pp. 233-255 ◽  
Author(s):  
Anil Kumar Jain
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Business Relationships ◽  
Black Economy ◽  
Legal Provisions ◽  
Tax Laws ◽  
Conversational Language

‘Tax avoidance’ and ‘tax evasion’ are terms so frequently referred to in economic and business relationships today that they constitute part of our conversational language and people in general use these terms even without knowing their exact meaning and difference. Whereas tax avoidance implies a situation in which the taxpayer reduces his tax liability by taking advantage of the loop-holes and ambiguities in the legal provisions, in the case of tax evasion, facts are deliberately misinterpreted and the tax liability is understated. Thus, while tax avoidance is perfectly legal and is, at times, referred to as ‘tax planning’, tax evasion is illegal and, therefore, carries with it the risk of penalties and prosecutions under the tax laws. As such, the black economy comprises the sum total of all the various methods of tax evasion but does not include tax avoidance. Accordingly, whereas the consequences of the two phenomena are different for the taxpayers, both reduce the revenue of the Exchequer and consequently need to be checked to the greatest extent possible.

scholarly journals Pengaruh Pengetahuan dan Pemahaman Peraturan Perpajakan, Penghindaran Pajak dan Sanksi Perpajakan Terhadap Kepatuhan Wajib Pajak

2018 ◽  
Vol 10 (2) ◽  
pp. 156-167
Author(s):  
Davidya Febri ◽  
Tri Sulistyani
Keyword(s):  
Data Collection ◽  
Tax Evasion ◽  
Random Sampling ◽  
Sampling Methods ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
The Third ◽  
The Difference ◽  
Program Version

The purpose of this study was to determine the effect of knowledge and understanding of taxation regulations, tax avoidance and taxation sanctions simultaneously and partially on taxpayer compliance. To find out the difference in knowledge and understanding of taxation regulations,  tax  avoidance,  taxation  and  compliance sanctions  on  private  taxpayers  of private employees with ASN's personal taxpayers. In this study using the population of all individual taxpayers registered in the Tegal City KPP with a sample of 100 respondents. The sampling technique using simple random sampling. Methods of data collection by distributing questionnaires. The data is processed using SPSS program version 23. The results of this study conclude that the first hypothesis is that there is the influence of knowledge and understanding of tax regulations, tax avoidance and taxation sanctions simultaneously on taxpayer compliance with a significant value of 0,000. The second hypothesis  is  that  there  is an  influence  of  knowledge  and  understanding  of  taxation regulation partially to taxpayer compliance with the significant value equal to 0,011. The third hypothesis is that there is no partial tax avoidance effect on taxpayer compliance with a significant value of 0.069. The fourth hypothesis is that there is a partial effect of taxation sanctions on taxpayer compliance with a significant value of 0.030. The fifth hypothesis is that  there  are  differences  in  knowledge  and  understanding  of  taxation  regulations,  tax evasion,  tax  sanctions  and  compliance  with  private taxpayers  private  employees  with taxpayers personal ASN. While for both groups of taxpayers both private and ASN employees do not differ or there is no difference in preferences on tax sanctions.

scholarly journals PENGARUH MAQASHID SYARIAH INDEX, PROFITABILITAS DAN CORPORATE SOCIAL RESPONSIBILITY TERHADAP AGRESIVITAS PAJAK

2019 ◽  
Vol 5 (1) ◽  
pp. 98-115
Author(s):  
Ayu Inayaturrohmah ◽  
Indriyana Puspitosari
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Evasion ◽  
Commercial Banks ◽  
Quantitative Research ◽  
Tax Avoidance ◽  
Tax Aggressiveness ◽  
Purposive Sampling ◽  
Tax Revenues ◽  
Corporate Social

Abstract            Realization of tax revenues in Indonesia has not yet reached the target, because tax revenues are not yet optimal and there is tax aggressiveness through tax avoidance and tax evasion. This study aims to analyze the effect of Maqashid Syariah Index (MSI), profitability and Corporate Social Responsibility (CSR) on tax aggressiveness. This type of research is quantitative research with a population of 13 Sharia Commercial Banks in Indonesia during the 2013-2017 observation period. This study used a purposive sampling method and obtained samples of 5 Islamic Commercial Banks that met the criteria. Data analysis to test hypotheses using PLS. The results of this study indicate that the independent variable in explaining the dependent variable is 23% and is solved by other factors outside the study. The results showed that profitability had a significant effect on tax aggressiveness. Whereas MSI and CSR are not significant in tax aggressiveness.  Keyword: Tax Aggressiveness, Maqashid Sharia Index, Corporate Social Responsibility Abstrak            Realisasi penerimaan pajak di Indonesia belum mencapai target, karena penerimaan pajak yang belum optimal serta adanya penghindaran dan penggelapan pajak atau yang kita kenal dengan agresivitas pajak. Penelitian ini bertujuan untuk menganalisis pengaruh Maqashid Syariah Index (MSI), profitabilitas dan Corporate Social Responsibility (CSR) terhadap agresivitas pajak. Jenis penelitian adalah penelitian kuantitatif dengan populasi dalam penelitian ini sebanyak 13 Bank Umum Syariah di Indonesia selama periode observasi 2013-2017. Penelitian ini menggunakan metode purposive sampling dan diperoleh sampel 5 Bank Umum Syariah yang memenuhi kriteria. Analisis data untuk menguji hipotesis menggunakan PLS. Hasil penelitian ini menunjukkan bahwa variabel independen dalam menjelaskan variabel dependen adalah 23% dan diselesaikan oleh faktor lain di luar penelitian. Hasil penelitian menunjukkan bahwa profitabilitas berpengaruh signifikan terhadap agresivitas pajak. Sedangkan MSI dan CSR tidak signifikan pada agresivitas pajak. Kata Kunci: Agresivitas Pajak, Maqashid Syariah Index, Corporate Social Responsibility

scholarly journals Tax Evasion, Corporate Social Responsibility and National Governance: A Country-Level Study

2021 ◽  
Vol 13 (20) ◽  
pp. 11166
Author(s):  
Tânia Menezes Montenegro
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Mediating Effect ◽  
Reputational Risk ◽  
Csr Reporting ◽  
Country Level ◽  
Environmental Disclosures ◽  
Corporate Social ◽  
The Relationship ◽  
Significant Support

This study uses a sample of 25 OECD countries to examine the association between CSR, national governance and tax evasion at the country level. The interaction between country-level governance and CSR relative to tax avoidance is also explored. The findings suggest that neither the ESG dimensions nor the overall CSR measure are significant determinants of tax evasion at the country level. In contrast, national governance quality is significantly and negatively related to tax evasion. Significant support is also found for the mediating effect of national governance on the association between CSR and tax evasion: in countries with weak national governance, CSR and country-level governance are substitutes; in countries with strong national governance, CSR reporting (in particular, environmental disclosures) seems to be used as a cosmetic and compensatory tool for firms to mitigate the reputational risk and public concern arising from tax evasion activities. The findings are theoretically and practically relevant as they underscore not only the importance of national governance in mitigating tax evasion but also the relevance of the mediating effect of national governance on the relationship between CSR and tax evasion. The evidence highlights the need for policymakers in countries with strong national governance to design new/strong anti-tax avoidance regulations.

Are Socially Responsible Firms Less Likely to Expatriate? An Examination of Corporate Inversions

2017 ◽  
Vol 39 (2) ◽  
pp. 43-62 ◽  
Author(s):  
Henry He Huang ◽  
Li Sun ◽  
Tong (Robert Yu
Keyword(s):  
Stakeholder Theory ◽  
Operating Performance ◽  
Tax Planning ◽  
Data Availability ◽  
Socially Responsible ◽  
Full Sample ◽  
Planning Strategy ◽  
Corporate Social ◽  
Practical Implications

ABSTRACT This study examines whether corporate social responsibility (CSR) is related to the likelihood of corporate inversions, a legal tax-planning strategy. We use a full sample to test stakeholder theory and a risk management view of CSR. We find that firms with higher CSR performance are less likely to expatriate compared to firms with lower CSR performance. Although equity investors react positively to inversion announcements, we find that the reaction is less positive for firms with higher CSR ratings. These results are consistent with stakeholder theory. We do not find evidence that inversion firms experience significant improvements in operating performance after inversion. Overall, this study improves our understanding of the role of CSR in corporate expatriation decisions and has practical implications for a firm's stakeholders. Data Availability: Data are available from sources identified in the paper.

TAX PLANNING: PRACTICAL PROBLEMS OF IMPLEMENTATION

2017 ◽  
Author(s):  
Tetiana Shulha ◽  
◽  
Kateryna Khaletska ◽  
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Tax Planning ◽  
Planning System ◽  
Corporate Management ◽  
Tax Management ◽  
Basic Approaches ◽  
The One ◽  
Definition Of

The article has investigated scientific achievements of scientists, who studied the issue of "tax planning" in the system of tax management at an enterprise. The basic approaches to definition of essence of tax planning in the system of corporate management of an enterprise are established. The article has given its own definition of "tax planning". It has ascertained that one of the important elements of tax compliance at the enterprise is tax planning and has substantiated the necessity of its introduction. The article also has defined the main objectives of tax planning. The necessity of introduction of planning is connected to its ability to prevent delinquencies in the sphere of taxation, define losses the enterprise may incur in payment of taxes, determine optimal ways of enterprise activity and etc. The article has described the main levels of planning - strategic, current, operational, and identifies tasks at each of them. Types of tax planning and their peculiarities are established and investigated. The conclusion about the relevance and necessity of the use of tax planning system by the enterprise for its successful functioning is made. It has proved the expediency of creation of special structural subdivisions and engagement of separate specialists for realization of tax planning functions at the enterprises. The article has defined practical problems of implementation of tax planning in an enterprise to which the one can refer: absence of legislative regulation, confusion of notions of "tax planning" with notions of "tax evasion" and "tax avoidance", implementation of aggressive tax planning in an enterprise, inexperience of governing bodies of economic entities and/or their neglect of tax planning. Ways of solving these problems that have developed in practice include defining tax planning, its system, principles, methods and techniques at the level of law, and improving its organizational, informational and methodological support in the enterprise.

scholarly journals Pengaruh Pengungkapan CSR, Karakter Eksekutif, Profitabilitas, Dan Investasi Aktiva Tetap Terhadap Penghindaran Pajak

2019 ◽  
Vol 29 (2) ◽  
pp. 833
Author(s):  
Ni Ketut Lely Aryani Merkusiwati ◽  
I Gst Ayu Eka Damayanthi
Keyword(s):  
Tax Evasion ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Sampling Technique ◽  
Capital Intensity ◽  
Manufacturing Companies ◽  
Analysis Technique ◽  
Fixed Assets ◽  
Investment In Fixed Assets ◽  
Corporate Social

Tax avoidance is one way to reduce the amount of tax legally that does not violate tax regulations, in contrast to tax evasion, which uses unlawful methods to reduce or eliminate the tax burden while tax avoidance (tax avoidance) ) utilizing loopholes in tax regulations to avoid paying larger amounts of tax. This study was conducted to determine the effect of Corporate Social Responsibility (CSR), executive character, profitability and investment in fixed assets in tax avoidance. This research was conducted at manufacturing companies listed on the Indonesia Stock Exchange in 2015-2017. Sampling using a purposive sampling technique. The data analysis technique used in this study is multiple linear regression. Regression test results show that CSR and executive character negatively affect tax avoidance. while the profitability and investment of fixed assets have no effect on tax avoidance. Keywords : CSR; Executive Character; Profitabilitas; Capital Intensity; Tax Avoidance.

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