Determinants of Tax Planning: Theoretical Analysis
Open Access
- 20 January 2021
- journal article
- Published by Vilnius University Press in Buhalterinės apskaitos teorija ir praktika
- Vol. 22, 5
- https://doi.org/10.15388/batp.2020.27
Abstract
Annotation. Tax planning is a topic of interest for taxpayers, practitioners, public authorities and academics. Analyzing scientific literature on tax planning shows that some authors are looking at the tax planning process, while others are looking at the factors that determine tax planning. Although there are a number of scientific literature analysing these factors, it is noted that there is a need to systematize this literature. The purpose of the article is to identify the determinants of tax planning activities in companies and households. Methods used in the article: systematic analysis of scientific literature, systematization of information, comparison, generalization. After analyzing the scientific literature, authors provide a concept of tax planning and selected determinants that encourage and inhibit the involvement of both types of taxpayers in tax planning activities. After a theoretical analysis, it was found that corporate tax planning is influenced by the company's profitability, profit begor taxes, internationalisation, the scale of foreign operations, listing, capital receptivity and growth, development, size and leverage of the company, optimism of the company CEO, experience of his military service, lobbying, reputation and financial accounting issues. Household tax planning is influenced by taxpayers' age, income, intra-household income inequality, experience, a compendium tax system, its complexity, fines, the likelihood ofecassionisation. Religiousity is a factor that hampers the involvement of both businesses and households in tax planning activities. Keywords: tax planning, determinants, tax avoidance, households, company. JEL Code: H26Keywords
This publication has 32 references indexed in Scilit:
- Multinational enterprises and corporate tax planning: A review of literature and suggestions for a future research agendaInternational Business Review, 2020
- Tax planning of married couples and intra-household income inequalityJournal of Public Economics, 2019
- Tax optimization and the firm's value: Evidence from the Tunisian contextBorsa Istanbul Review, 2016
- Intention to pay taxes or to avoid them: The impact of social value orientationJournal of Economic Psychology, 2015
- DEFINING AND MEASURING TAX PLANNING AGGRESSIVENESSNational Tax Journal, 2014
- CEO characteristics and corporate tax planning evidence from US companiesInternational Journal of Managerial and Financial Accounting, 2014
- Taxes and Corporate Sustainability Reporting: Is Paying Taxes Viewed as Socially Responsible?SSRN Electronic Journal, 2013
- Religiosity and Tax AvoidanceJournal of the American Taxation Association, 2012
- Long-Run Corporate Tax AvoidanceThe Accounting Review, 2008
- On the Extent, Growth, and Efficiency Consequences of State Business Tax PlanningPublished by Cambridge University Press (CUP) ,2007