The Impact of Cultural and Business Factors on Corporate Tax Avoidance

Subject Areas : مدیریت

Siamak Tayefeh ¹ , Mohsen Dastgir ² , Farzin Rezaii ³ , Saeed Ali Ahmadi ⁴

1 - PhD student, Department of Accounting, Isfahan Branch, Islamic Azad University, Isfahan, Iran
2 - Professor, Department of Accounting, Isfahan Branch, Khorasgan, Islamic Azad University, Isfahan, Iran
3 - Associate Professor, Department of Accounting, Qazvin Branch, Islamic Azad University, Qazvin, Iran
4 - Assistant Professor, Department of Accounting, Isfahan Branch, Islamic Azad University, Isfahan, Iran

Received: 2019-12-16 Accepted : 2019-12-16 Published : 2019-11-22

Keywords: Cultural Factors, Corporate Tax Avoidance, Business Factors, Structural Equation Technique,

Abstract :

According to the self-interest hypothesis, and despite the information asymmetry between taxpayers and the government authorities, individuals are reasonably trying to avoid paying taxes often. Companies use various forms of business, such as tax savings, to enhance their competitive potency. Tax avoidance behavior, on the other hand, is a function of cultural norms. In the present study, the impact of cultural factors and business factors on corporate tax avoidance has been examined. In this study, we measured cultural values by Hofstede's (1984) questionnaire, business factors by measuring customer centralization, business strategy, related party transactions, and company centralization indices. We tested the hypotheses by the structural equation technique. The statistical sample of the study consists of 77 companies admitted to the Tehran Stock Exchange and its time period during years 2011 to 2015. The results of the research showed that cultural and business factors influence the level of corporate tax avoidance.