Private firms’ tax aggressiveness and lightweight pre-tax-audit interventions by the tax administration

Hannu Ojala*, Pekka Malo, Esko Penttinen

*Tämän työn vastaava kirjoittaja

Tutkimustuotos: LehtiartikkeliArticleScientificvertaisarvioitu

53 Lataukset (Pure)

Abstrakti

This study examines private companies’ tax aggressiveness and its changes in response to interventions by the government tax administration. While scholars have researched authorities’ interventions extensively, this study is the first to consider the “light” technique of tax adjustments made by the tax administration immediately after the firm submits its tax return. We utilized a large-scale proprietary dataset obtained from Finland's tax administration (covering 85,155 firm–years), the hypotheses addressed the relationship between the firm's level of tax aggressiveness and the tax-administration intervention (H1) and that between the intervention and companies’ response to it (H2). The empirical findings support both hypotheses. Its lightweight nature notwithstanding, the pre-tax-audit intervention can serve as a tool for ameliorating firms’ overly tax-aggressive behavior. Finally, we present management implications that should be of interest to tax administrations and regulatory authorities, related to the potential effectiveness of a tax administration's monitoring processes in mitigating the tax aggressiveness of private companies.

AlkuperäiskieliEnglanti
Artikkeli100550
Sivut1-14
JulkaisuJOURNAL OF INTERNATIONAL ACCOUNTING, AUDITING AND TAXATION
Vuosikerta51
Varhainen verkossa julkaisun päivämäärä12 toukok. 2023
DOI - pysyväislinkit
TilaJulkaistu - kesäk. 2023
OKM-julkaisutyyppiA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

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