Do auditor-provided tax services improve the relation between tax-related internal control and book-tax differences?

Huang, Da; Chang, Ming-Lei

doi:10.1080/16081625.2014.1003570

Cited by 13 publications

(18 citation statements)

References 53 publications

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“…Previous research provides empirical evidence that internal control influences management behavior in compiling financial information and other company policies (Doyle et al, 2007;Ashbaugh-Skaife et al, 2008;Han, 2010). More specifically, Gleason et al (2017) and Huang and Chang (2015) provide empirical evidence that adequate internal control reduces the opportunistic behavior of management in carrying out tax avoidance. So conceptually, in line with Doss and Jonas (2004), effective internal control aims to ensure that tax planning is effective and supports the achievement of company goals.…”

Section: Introductionmentioning

confidence: 99%

The effect of internal control on tax avoidance: the case of Indonesia

Bimo

Prasetyo

Susilandari

2019

JED

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Purpose The purpose of this paper is to analyze the effect of internal control on tax avoidance analyzing internal (family ownership) and external (environmental uncertainty) factors on the effectiveness of internal control in preventing tax avoidance. Design/methodology/approach First, the authors examine the direct effect of the effectiveness of internal control on tax avoidance. Second, the authors examine the effect of moderation of family ownership and environmental uncertainty on the relationship of the effectiveness of internal control on tax avoidance. Third, the authors divide the full sample into two groups, high and less effectiveness of internal control to examine the direct effect of internal control effectiveness on tax avoidance and when considering moderating variables. Fourth, the authors use two different measures of the effectiveness of internal control. Findings This research found that effective internal control can reduce tax avoidance. Family ownership affects the relationship between internal control and tax avoidance, but environmental uncertainty does not influence the relationship between internal control and tax avoidance. Practical implications Internal control increases compliance with rules and policies, so companies must design and implement effective internal control to prevent tax avoidance activities in violation of tax regulations. Originality/value In contrast to previous studies, this study measures the effectiveness of internal control using the index of internal control practice disclosure and considers internal and external factors that can affect the effectiveness of internal control to prevent tax avoidance.

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Section: Introductionmentioning

confidence: 99%

The effect of internal control on tax avoidance: the case of Indonesia

Bimo

Prasetyo

Susilandari

2019

JED

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“…Confirma-se que as empresas auditadas estão associadas a maiores níveis de BTD, em especial nas contas auditadas por uma das Big4 e em concordância com a literatura recente sobre esta matéria [25].…”

Section: Conclusõesunclassified

The effect of auditing on tax corrections: Empirical evidence of Portuguese private companies

Dias

2017

2017 12th Iberian Conference on Information Systems and Technologies (CISTI)

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“…Internal controls applied in the company function to ensure that company management does not violate applicable regulations (Rae, Sands, & Subramaniam, 2017). Huang and Chang (2015) state that internal control can reduce the opportunistic behavior of management in tax avoidance. Good internal control can prevent management from acting opportunistically in tax planning and encourage management to understand the regulations that apply to tax planning.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

Tania

Mukhlasin

2020

MERJ

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This study aims to analyze the effect of the effectiveness of internal control, independent commissioners, the expertise of the board of commissioners, the number of audit committees, and the expertise of the audit committee on tax avoidance in manufacturing companies listed in Indonesia Stock Exchange period 2016-2018. This research is expected to be a material consideration for companies in making decisions related to taxation. The deductive approach used in this study by developing hypotheses based on relevant theories and findings of previous studies. Agency theory is used to see the effect of corporate governance on tax avoidance. The data collection method uses secondary data from the company's financial statements and annual reports according to specific criteria. Data analysis was performed by descriptive statistics and multiple linear regression. The results of the regression analysis prove that effectiveness of internal control and number of audit committees had a positive effect which means higher effectiveness of internal control and number of audit committees cause more tax avoidance, conversely independent commissioners and expertise of the board of commissioners had a negative effect which shows greater independent commissioners and expertise of the board of commissioners cause less tax avoidance. Another result claim that the expertise of the audit committee did not affect on tax avoidance. In contrast to previous studies, this study is more varied by combining several independent variables. JEL Codes: G34, H26.

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Do auditor-provided tax services improve the relation between tax-related internal control and book-tax differences?

Cited by 13 publications

References 53 publications

The effect of internal control on tax avoidance: the case of Indonesia

The effect of internal control on tax avoidance: the case of Indonesia

The effect of auditing on tax corrections: Empirical evidence of Portuguese private companies

The Effect of Corporate Governance on Tax Avoidance: Evidence from Indonesia

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