Corporate Governance Characteristics as a Stimulus to Tax Management

Abstract

This article aimed to investigate whether corporate governance uses tax management to increase companies' performance. The objective was checking whether corporate governance characteristics, such as remuneration paid to the executive board, segregation between Chairman and CEO, and the independence and composition of the Board of Directors, influence tax management in Brazilian companies. At the same time, it aimed to identify whether the preceding tax management is reflected on the subsequent tax management. To do this, a sample of 355 Brazilian companies listed on the BM&FBOVESPA between 2008 and 2014 was used, in order to find out whether their corporate governance characteristics influenced tax management, something identified by calculating ETR, CashETR, and BTD. As a result, it was found (i) that the remuneration paid to executives may be regarded as a characteristic influencing tax management in Brazilian firms, and (ii) that the preceding tax management influences the future tax management. In addition, it was found that Brazilian companies do not rule out tax management benefits, since the average effective rate in the sample under analysis was 25%, and it is statistically lower than the nominal rate of taxes on earnings in Brazil, which is 34%.

Does Managerial Ability and Corporate Governance Mitigate Tax Avoidance Activities When Environmental Uncertainty is Considered?

“…However, tax avoidance activities can create agency problems because shareholder and manager interests may not comply with tax risks [14]. Managers can do tax avoidance by exploiting loopholes of tax avoidance legality whose definitions are still involved and biased [23]. Concerning environmental uncertainty, information asymmetry of agency issues between managers and external stakeholders will be higher due to environmental uncertainty will lead to variability in reported earnings [23].…”

Agressividade Tributária: Um Survey da Literatura

“…Destaquem-se as pesquisas que apreciam os seguintes pontos: a relação entre empresas familiares e a Agressividade Tributária (Cabello & Gaio, 2017;Martinez & Ramalho, 2014); o controle por capital estrangeiro (Bis & Martinez, 2017); a influência da estrutura de controle (Fonseca & Martinez, 2017); o fato de a empresa ser controlada ou controladora (Martinez & Dalfior, 2016); e as características gerais de governança corporativa, como a remuneração paga ao conselho executivo, a segregação entre Chairman e CEO e a independência e composição do Conselho de Administração (Gomes, 2016).…”

Untitled

“…Mekanismeinternal mengacu pada Dewan Direksi. Menurut Gomes (2016),Dewan Direksi memainkan peran kunci dalamtata kelola perusahaan perusahaan. Dewan Direksimerupakan mekanisme internal yang utama untuk mengurangi biaya keagenan antara pemegang sahamdan manajer, serta antara pengendali danpemegang saham minoritas.Salah satu prinsip tata kelola yaitu akuntabilitas menekankan bahwa Direksi melakukan monitoring, evaluasi dan pengendalian terhadap manajemen untuk meyakinkan bahwa manajemen bertindak sesuai dengan kepentingan pemegang saham dan pihak-pihak berkepentingan lainnya.…”

“…Minnick and Noga (2010) Desai and Dharmapala (2006) bahwa remunerasi eksekutif berpengaruh negatif terhadap BTD sebagai proksi manajemen pajak. Menurut Gomes (2016), efek negatif berasal dari karakteristik tata kelola perusahaan yang diadopsi oleh perusahaan. Perusahaan yang memiliki tata kelola perusahaan yang lemah lebih mungkin terjadinya manajemen pajak meskipun remunerasi dewan eksekutif meningkat.…”

“…Semakin tinggi remunerasi dewan eksekutif akan mengurangi manajemen untuk melakukan manajemen pajak karena secara otomatis peningkatan pembayaran remunerasi akan meningkatkan beban sehingga mengurani penghasilan kena pajak. Hasil penelitian ini kontradiktif dengan penelitian Desai and Dharmapala (2006); Gomes (2016); Rego and Wilson (2010);Dyreng et.al. (2010) dan Minnick and Noga (2010) Manajemen pajak tahun sebelumnya yang diukur dengan ETR dan Cash ETR tahun sebelumnya berpengaruh positif terhadap manajemen pajak.…”