Presenting a model of tax non-compliance in Iran based on the network analysis Process (ANP)

محورهای موضوعی : Financial Economics

Esmaeil Hamid ¹ (Department of Accounting. Khorramshahr International Branch. Islamic Azad University. Khorramshahr. Iran.)
Houshang Amiri ² (Department of Accounting. Abadan Branch. Islamic Azad University. Abadan .Iran.)
Mohammad Ramazan Ahmadi ³ (Social Science Department. Faculty Of Economics and Social Science. Shahid Chamran University OF Ahvaz. Ahvaz. Iran.)
Allah karam Salehi ⁴ (Department of Accounting, Masjed-Soleiman Branch Islamic Azad University, Masjed-Soleiman, Iran)

تاریخ دریافت : 1401/02/03 تاریخ پذیرش : 1401/05/25 تاریخ انتشار : 1402/02/11

کلید واژه: tax, Network Analysis, Disobedience,

چکیده مقاله :

In the field of corporate tax behavior, corporate governance mechanisms are effective for shaping and monitoring the behavior of managers. The board, which is responsible for allocating resources, improving performance and increasing shareholder wealth, plays a central role in choosing a tax management strategy. Hence, companies with different governance structures may adopt different types of tax management. Therefore, it can be argued that corporate governance mechanisms can affect corporate tax activities. In order to achieve the weight of the identified criteria, the network analysis process method was used. The purpose of this method was to structure the decision-making process, according to a scenario affected by multiple independent factors. In this method, there can be a relationship between all levels, while in the method of hierarchical analysis process, this relationship could only be from high levels to low levels. The method of the network analysis process, such as the hierarchical analysis process, calculates the inconsistency of all judgments by the conformity rate, and the calculated inconsistency rate must be less than 10%. The compatibility coefficient of the final matrix shows the validity of the questionnaire. In order to analyze the data, Super Decision 1.6.0 software developed by Thomas L. Saati, the inventor of this method, as well as MS Excel 2019 software were used. There is considerable evidence that increasing tax requirements can increase tax compliance, but typically some types of tax offenses are used as a tool to control the phenomenon of tax default.

منابع و مأخذ:

[1] Aghaei, M., Hassani, H., Asadi, Z., The importance of the internal information environment for tax avoidance in the companies listed in Tehran Stock Exchange, Journal of Financial Accounting Research, 2016, 8(4), P.  17-36. Doi: 10.22108/far.2016.21425

 

[2] Ebrahimi, S., Bahraminasab, A., Hasanzadeh, M., The Analysis of Financial Reporting Quality and Tax Avoidance According to Governmental Ownership and Political Connections, Quarterly Journal of Public Organizations Management, 2017, 5(2), P. 61-76 (in Persian).

 

[3] saleh avalidi, M., Najafi Tavana, A., Ahmadi Mosavi, M. Patologhy of Iran's Tax system, The Judiciarys Law Journal, 2016, 80(96), P. 37-58. Doi:10.22106/jlj.2016.24716

 

[4] Etemadi, H., Sepasi, S., Sari, M., A Conceptual Framework for Corporate Tax Planning, Journal of Accounting and Social Interests, 2016, 6(1), P. 61-80. Doi: 10.22051/ijar.2016.2363

 

[5] Sari, M., Etemadi, H., Sepasi, S., Risk Assessment of the Corporate Tax Policies, Empirical Studies in Financial Accounting, 2017, 14(54), P. 6-24 (in Persian).

 

[6] Barzegar, G., Hasan Nataj Kordi, M., Abbasi, A., Impact of Audit Committee Characteristics on Tax Avoidance in the Listed Companies of the Tehran Stock Exchange, Accounting and Auditing Studies, 2020, 9(33), P.25-42. Doi: 10.22034/iaas.2020.107630

 

[7] Izadikhah, M., A fuzzy stochastic slacks-based data envelopment analysis model with application to healthcare efficiency, Healthcare Analytics, 2022, 2, 100038. Doi: 10.1016/j.health.2022.100038

[8] bandarian, A., mosavi, S., The Investigation of Relationship Between Tax Planning and Agency Costs with Emphasis On Political Connections in Tehran Stock Exchange, Journal of Accounting and Management Vision, 2020, 3(30), P.96-113 (in Persian).

 

[9] Barzideh, F., Ebrahimi Dardeh, S., Ranking Effective Behavioural Factors Affecting Non –compliance in Business Tax from the Professional Perspective, J Tax Res. 2019, 27(42), P.43-72. Doi: 10.29252/taxjournal.27.42.43

 

[10] Parsa, O. A., Mehrkam, M., Hesni Moghadam, F., The Impact of Economic Sanctions and Political Relations with Emphasis on Earnings and Tax Gaps: A Test of Political Economy Theory, J Tax Res. 2021, 28(48), P. 83-108, Doi: 10.52547/taxjournal.28.48.83

 

[11] Hosseini Kondelji, M., Derakhshan, M., Philosophical-economic analysis of the factors of taxpayers' disobedience and their prioritization, Scientific Journal (Quarterly) Economic Research and Policy, 2021, 29(98), P. 243-287 (in Persian).

 

[12] Haghighi Fashi, S., Banimahd, B., Ohadi, F., Hemmati, B., Investigating the Impact of Dimensions of Social and Personal Norms on Tax compliance, Journal of Management Accounting and Auditing Knowledge, 2020, 9(33), P. 41-59 (in Persian).

 

[13] Khajavi, S., Sarvestani, A., Tax Avoidance and Agency Theory: Evidence from Tehran Stock Exchange (TSE), Management Accounting, 2017, 10(34), P. 15-28 (in Persian).

 

[14] Rezaei Piteh Noei Y., Gholamreza Pour M., Amirnia N., Effectiveness of the Audit Committee and Corporate Tax Avoidance: A Study of the Modifying Role of Cost Leadership and Differentiation Strategies, Auditing knowledge, 2020, 20(8), P. 1-20 (in Persian).

 

[15] Samaniyan, A., Bandarian, A., Masihipor, K., Investigating the Relationship between Political Connections, Tax Avoidance and Related Party Transactions On Fairm Value: Test of Political Economy Theory in Tehran Stock Exchange, Journal of Accounting and Management Vision, 2021, 3(35), P. 15-32 (in Persian).

 

[16] Arab Salehi, M., Hashemi, M., The effect of managerial overconfidence on tax avoidance, Accounting and Auditing Reviews, 2015, 22(1), P. 104-85. Doi: 10.22059/ACCTGREV.2015.53669

 

[17] Atefimanesh R, Setavarz A R., A Glance at the Financial Markets Transformation the World and Iran in the Year 2012, Economic Journal - Bi-monthly review of economic issues and policies, 2012, 12(7-8), P.113-130, URL: http://ejip.ir/article-1-474-fa.html

 

[18] Izadikhah, M., A Fuzzy Goal Programming Based Procedure for Machine Tool Selection, Journal of Intelligent & Fuzzy Systems, 2015, 28(1), P. 361 – 372. Doi: 10.3233/IFS-141311

[19] Karami, G., Shahabi, A., Tax Policy Model Considering Cultural Values, Financial Research Journal, 2016, 18(3), P. 541-562. Doi: 10.22059/jfr.2016.62455

 

[20] Mojtahedzade, V., Abouhamzeh, M., Mirzaee, M., Corporate Disclosure Quality and Tax Noncompliance., Empirical Research in Accounting, 2015, 5(1), P. 1-21. Doi: 10.22051/jera.2015.1997

 

[21] Mehrani, S., Seyyedi, S., The effect of Accounting Conservative and Tax Income on Tax Avoidance, Journal of Management Accounting and Auditing Knowledge, 2014, 3, P. 13-34 (in Persian).

 

[22] Nikomram, H., Banimahd, B., Rahnamaye Roodpashti, F., Kiai, A., Political Economy Perspective and Earnings Management, Management Accounting, 2013, 6(18), P. 31-43 (in Persian).

 

[23] Nasiri, S., Kaab Omeir, A., Dorseh, S., Impact of Environmental Uncertainty on Tax Avoidance and Tax Evasion of Listed Companies in Tehran Stock Exchange, Journal of Management Accounting and Auditing Knowledge, 2020, 9(36), P. 41-52 (in Persian).

 

[24] Zare, R., Izadikhah, M., Multi-criteria decision making methods for comparing three models of aluminum ingot production through life cycle assessment, Applied Ecology and Environmental Research, 2017, 15(3), P. 1697-1715, Doi: 10.15666/aeer/1503_16971715

[25] Abdul Wahab, E.A., Ariff, A.M., Madah Marzuki, M. and Mohd Sanusi, Z., Political connections, corporate governance, and tax aggressiveness in Malaysia, Asian Review of Accounting, 2017, 25(3), P. 424-451. 

Doi: 10.1108/ARA-05-2016-0053

[26] Aning Sejati, Y., Political connections and earnings quality: evidence from Malaysia, phd dissertation, Oklahoma state university, 2009.

 

[27] Antonius, R., Tampubolon, L. D., Analisis penghindaran pajak, beban pajak tangguhan, dan koneksi politik terhadap manajemen laba, Jurnal Akuntansi, Keuangan, Dan Manajemen, 2019, 1(1), P. 39–52.

 Doi: 10.35912/jakman.v1i1.5

 

[28] Armstrong, C. S., Blouin, J. L., Jagolinzer, A. D., Larcker, D. F., Corporate governance, incentives, and tax avoidance, Journal of Accounting and Economics, 2015, 60(1), P. 1–17. Doi: 10.1016/j.jacceco.2015.02.003.

 

[29] Atwood, T.J., Drake, M.S., Myers, L.A., Book-tax conformity, earnings persistence and the association between earnings and future cash flows, Journal of Accounting and Economics, 2010, 50(1), P. 111-125.

Doi: 10.1016/j.jacceco.2009.11.001

 

[30] Izadikhah, M., Deriving Weights of Criteria from Inconsistent Fuzzy Comparison Matrices by Using the Nearest Weighted Interval Approximation, Advances in Operations Research, 2012, 574710. Doi:10.1155/2012/574710

 

[31] Baker, M., Ruback, R., Wurgler, J., Behavioral corporate finance, Handbook of corporate finance: Empirical Corporate Finance, 2017, Doi: 10.1016/B978-0-444-53265-7.X5001-X

 

[32] Barros, V., Sarmento, J. M., Board meeting attendance and corporate tax avoidance: Evidence from the UK, Business Perspectives and Research, 2020, 8(1), P. 51–66. Doi: 10.1177/2278533719860021

 

[33] Bolourian, S., Angus, A., Alinaghian, L., The impact of corporate governance on corporate social responsibility at the board-level: A critical assessment, Journal of Cleaner Production, 2021, 291(1), 125752.

 Doi: 10.1016/j.jclepro.2020.125752

 

[34] Chyz, J.A., Gaertner, F.B., Kausar, A., Overconfidence and Corporate Tax Policy, Rev Account Stud, 2019, 24, P. 1114–1145, Doi: 10.1007/s11142-019-09494-z

 

[35] Ciconte, W., Donohoe, M. P., Lisowsky, P., Mayberry, M., Predictable uncertainty: The relation between unrecognized tax benets and future income tax cash utows, SSRN, 2016, Doi:10.2139/SSRN.2390150

[36] Dalton, D. R., Daily, C. M., Johnson, J. L., Ellstrand, A.E., Number of directors and financial performance: A meta-analysis, Academy of Management journal, 1999, 42(6), P. 674-686. Doi: 10.5465/256988

 

[37] Izadikhah, M., Azadi, M., Toloo, M., Hussain, F. K., Sustainably resilient supply chains evaluation in public transport: A fuzzy chance-constrained two-stage DEA approach, Applied Soft Computing, 2021, 113, 107879. Doi: 10.1016/j.asoc.2021.107879

 

[38] Salehi, A., Mohammadi, S., Afshari, M., Impact of Institutional Ownership and Board Independence on the Relationship Between Excess Free Cash Flow and Earnings Management, Advances in Mathematical Finance and Applications, 2017, 2(3), P. 91-105. Doi: 10.22034/amfa.2017.533104

[39] Desai, M.A., Dharmapala, D., Corporate Tax Avoidance and High-powered Incentives, Journal of Financial Economics, 2006, 79(1), P. 145-179. Doi: 10.1016/j.jfineco.2005.02.002

 

[40] Itzhak Ben-David, John R., Graham, Campbell R. Harvey, Managerial Miscalibration, The Quarterly Journal of Economics, 2013, 128(4), P. 1547–1584, Doi: 10.1093/qje/qjt023

[41] Ferdinand, A., Chandrasekhar, G., Krishnamurti, S., Chowdhury, H., Corporate social responsibility, overconfident CEOs and empire building: Agency and stakeholder theoretic perspectives, Journal of Business Research, 2020, 111, P. 52-68, Doi: 10.1016/j.jbusres.2020.01.035

 

[42] García-Meca, E., Ram´on-Llorens M-C., Martínez-Ferrero, J., Are narcissistic CEOs more tax aggressive? The moderating role of internal audit committees, Journal of Business Research, 2021, 129(2021), P. 223–235, Doi: 10.1016/j.jbusres.2021.02.043

 

[43] Heitzman, S., Ogneva, M., Industry Tax Planning and Stock Returns, SSRN, 2018.

 Doi: 10.2139/ssrn.2777040

 

[44] Olsen, K.J., Stekelberg, J., CEO Narcissism and Corporate Tax Sheltering, The Journal of the American Taxation Association, 2016, 38(1), P. 1-22. Doi: 10.1590/1808-057x202009800 

 

[45] Izadikhah, M., Roostaee, R., Emrouznejad, A., Fuzzy Data Envelopment Analysis with Ordinal and Interval Data. International Journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 2021 Jun 1, 29(3), P.385-410. Doi: 10.1142/s0218488521500173

 

[46] Parsa, B., Sarraf, F., Financial Statement Comparability and the Expected Crash Risk of Stock Prices, Advances in Mathematical Finance and Applications, 2018, 3(3), P. 77-93. Doi: 10.22034/amfa.2018.544951

[47] Kim, B., Lee, S., Kang, K. H., The Moderating Role of CEO Narcissism on the Relationship between Uncertainty Avoidance and CSR, Tourism Management, 2018, 67, P. 203-213. Doi: 10.1016/j.tourman.2018.01.018

 

[48] Liua , X., Lib, J., Tong, Y., CFO gender and tax aggressiveness: Evidence from China, Pacific-Basin Finance Journal, 2022, 71, 101679, Doi: 10.1016/j.pacfin.2021.101679

 

[49] Olsen, K. J., Stekelberg, J.M., CEO Narcissism and Corporate Tax Sheltering, Journal of the American Taxation Association, 2016, 38(1), P. 1-22. Doi: 10.2308/atax-51251

 

[50] Olsen, K. J., Dworkis, K.K., Young, S.M., CEO Narcissism and Accounting: A Picture of Profits, Journal of Management Accounting Research, 2014, 26, P. 243-267. Doi: 10.2308/jmar-50638

 

[51] Rego, S., Tax-Avoidance activities of U.S. multinational Corporations, Contemporary Accounting Research, 2003, 20(4), P. 805-833. Doi: 10.1506/VANN-B7UB-GMFA-9E6W

 

[52] Skala, D., Overconfidence in Psychology and Finance an Interdisciplinary Literature Review, Bank i Kredyt, 2008, 4, P. 33-50.

 

[53] Izadikhah, M., Aliakbarpoor, Z., Sharafi, H. Ranking DMUs by ideal points in the presence of fuzzy and ordinal data, Theory of Approximation and Applications, 2015, 9(2), P. 13-36.

[54] Jokar, H., Shamsaddini, K., Daneshi, V., Investigating the Effect of Investors' Behavior and Management on the Stock Returns: Evidence from Iran, Advances in Mathematical Finance and Applications, 2018, 3(3), P. 41-52. Doi: 10.22034/amfa.2018.544948

[55] Sun, J., Lan, G. and Liu, G., Independent audit committee characteristics and real earnings management, Managerial Auditing Journal, 2014, 29(2), P. 153-172. Doi: 10.1108/MAJ-05-2013-0865

[59] Supatmi, S., Sutrisno, T., Saraswati, E., Purnomosidhi, B., The effect of related party transactions on firm performance: The moderating role of political connection in Indonesian banking, Business: Theory and Practice, 2019, 20(1), P. 81–92. Doi: 10.3846/btp.2019.08

 

[60] Hsieh, T-S., Wang, Z., Overconfidence and tax avoidance: The role of CEO and CFO interaction, Journal of Accounting and Public Policy, 2018, 37(3), P. 241-253. Doi: 10.1016/j.jaccpubpol.2018.04.004

 

[61] Wang, D., Sutherland, D., Ning, L., Wang, Y., and Pan, X., Exploring the influence of political connections and managerial overconfidence on R&D intensity in China's large-scale private sector firms, Technovation, 2018, 69, P.40-53, Doi: 10.1016/j.technovation.2017.10.007

 

[62] Yogi, P., Zaitul, Z., Yeasy, D., The Effect of Ownership and Audit Commitee Characteristics on Tax Avoidance, Beranda, Open Journal Systems, 2017, 10(1), P. 34-45.