Pandemic and tax avoidance: Cross-country evidence

Zhu, Jun; Ho, Kung‐Cheng; Luo, Sijia; Peng, Langchuan

doi:10.1016/j.econmod.2023.106300

Cited by 3 publications

(1 citation statement)

References 55 publications

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“…Social costs like consumer boycotts can determine corporate tax avoidance (Razen and Kupfer, 2023). Zhu et al. (2023) found that firm performances, economic growth, country-level stability and interest obligations are connected with corporate tax avoidance.…”

Section: Comparison Of Bangladesh’s Tax Avoidance and Evasion Factors...mentioning

confidence: 99%

Tax avoidance and tax evasion: current insights and future research directions from an emerging economy

Hossain,

Ali,

Ling

et al. 2024

AJAR

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PurposeThis study aims to identify factors affecting tax avoidance and tax evasion in Bangladesh and propose a future research agenda.Design/methodology/approachThis paper reviewed 423 articles published between 2010 and 2023 using a systematic literature review (SLR) approach.FindingsThe review classified the factors into three categories, namely individual taxpayers, corporate taxpayers and tax administration. Income level, tax penalty, tax morale, inefficient tax return system and tax assessment process are associated with the individual’s tax avoidance and tax evasion activities. Profitability, corporate governance and financial restrictions are key factors influencing corporate taxpayers’ involvement in tax avoidance and tax evasion. Factors related to tax administration include lack of social interaction, distrust of national officials, complexities of policies, politicisation of tax authority, lack of political stability, incompetent auditing, insufficient recording, lack of administrative cooperation, lack of accountability, insufficient counselling and compromising in tax prosecution cases.Practical implicationsThis paper provides tax regulators with insights to improve regulations and lessen tax avoidance and tax evasion activities.Originality/valueThis paper is the first attempt to provide guidance for academics when examining tax avoidance and tax evasion in Bangladesh.

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Section: Comparison Of Bangladesh’s Tax Avoidance and Evasion Factors...mentioning

confidence: 99%

Tax avoidance and tax evasion: current insights and future research directions from an emerging economy

Hossain,

Ali,

Ling

et al. 2024

AJAR

View full text Add to dashboard Cite

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The nexus of tax avoidance and firms characteristics – does board gender diversity have a role? Evidence from an emerging economy

Hossain,

Islam,

Ali

et al. 2024

APJBA

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PurposeThis study examines the moderating role of female directors on the relationship between the firms’ characteristics and tax avoidance in an emerging economy.Design/methodology/approachThis study employs the second-generation unit root test and the generalised method of moments (GMM) techniques. The Kao residual cointegration test corroborates a long-run cointegration among variables.FindingsFemale directors demonstrate mixed and unusual findings. No significant impact of female directors on tax avoidance is found. In addition, the presence of female directors does not show any negative or significant moderating impacts on the relationship between leverage, firm age, board size and tax avoidance. However, having more female directors can negatively and significantly moderate the relationship between more profitable firms, larger firms and tax avoidance. These findings show that the board of directors could use the presence of female directors to maximise their opportunistic behaviour, such as to avoid tax.Research limitations/implicationsResearch limitations – The study is limited by considering only 62 listed firms. The scope could be extended to include non-listed firms.Practical implicationsResearch implications – There is increasing pressure for female directors on boards from diverse stakeholders, such as the European Commission, national governments, politicians, employer lobby groups, shareholders, and Fortune and Financial Times Stock Exchange (FTSE) rankings. This study provides input to decision-makers putting gender quota laws into practice. Our findings can help policy-makers adopt regulatory reforms to control tax avoidance practices and enhance organisational legitimacy. Policymakers can change their policy to include female directors up to the threshold suggested by the critical mass theory.Originality/valueThis is the first attempt in Bangladesh to explore the role of female directors in the relationship between the firms' characteristics and tax avoidance. The current study has significant ramifications for bringing gender diversity into practice as a component of good corporate governance.

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Corporate tax performance and the COVID-19 pandemic: empirical evidence from Indonesia

Saragih

2024

PAR

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Purpose This study aims to enhance the understanding of the impact of the COVID-19 pandemic on corporate tax performance in the context of a large emerging country like Indonesia. Design/methodology/approach This study uses a quantitative approach with multiple regression methods on a data set of 2,366 firm-year observations registered on the Indonesia Stock Exchange (IDX) from 2017 to 2022. Findings The primary empirical findings from the multivariate regressions suggest a positive and significant association between the COVID-19 pandemic and corporate tax performance in Indonesia. In other words, these listed firms have increased their tax avoidance activities during the pandemic. As firms face financial hardships due to the pandemic's effects, they tend to engage in tax avoidance practices to reduce current income tax payments, thereby enhancing their liquidity. In addition, over time, firms have adapted to use various tax policies introduced by the government in response to the pandemic to mitigate the adverse impacts of the crisis. Research limitations/implications This study draws on a sample solely from one emerging country. Practical implications The results of this study can aid governments, policymakers, tax authorities and companies in evaluating their strategies concerning preparedness and emergency responses during crises, particularly those caused by pandemics. Originality/value To the best of the author’s knowledge, this study is considered one of the initial efforts to examine the impact of the COVID-19 pandemic on corporate tax avoidance in an emerging country like Indonesia.

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Pandemic and tax avoidance: Cross-country evidence

Cited by 3 publications

References 55 publications

Tax avoidance and tax evasion: current insights and future research directions from an emerging economy

Tax avoidance and tax evasion: current insights and future research directions from an emerging economy

The nexus of tax avoidance and firms characteristics – does board gender diversity have a role? Evidence from an emerging economy

Corporate tax performance and the COVID-19 pandemic: empirical evidence from Indonesia

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