Shareholder’s political motive and corporate tax avoidance
This paper describes the relationship between shareholder’s political motive and corporate tax avoidance using the Fraud-Risk Theory framework. Many corporate shareholders around the world actively participated in their country’s political arena, either as politicians or as donors to political parti...
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| Format: | Article |
| Language: | en |
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Fakulti Ekonomi dan Pengurusan
2015
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| Online Access: | http://journalarticle.ukm.my/9583/1/7229-33165-1-PB.pdf http://journalarticle.ukm.my/9583/ http://ejournal.ukm.my/ajac/issue/view/748/showToc |
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| author | Suryo Utomo, Mohd Rizal Palil, Romlah Jaffar, Rosiati Ramli, |
| author_facet | Suryo Utomo, Mohd Rizal Palil, Romlah Jaffar, Rosiati Ramli, |
| author_sort | Suryo Utomo, |
| building | Tun Sri Lanang Library |
| collection | Institutional Repository |
| content_provider | Universiti Kebangsaan Malaysia |
| content_source | UKM Journal Article Repository |
| continent | Asia |
| country | Malaysia |
| description | This paper describes the relationship between shareholder’s political motive and corporate tax avoidance using the Fraud-Risk Theory framework. Many corporate shareholders around the world actively participated in their country’s political arena, either as politicians or as donors to political parties. In order to maintain their political activities, they need easy, cheap and large sources of funds. One of the possible sources of funds is the undisbursed income tax payment to the government. However, this predicament has aroused the suspicion of taxation authorities on the extent of shareholder’s corporate tax compliance. Since corporate tax avoidance and shareholder’s political motives are attached to two different entities (corporations and individuals), it is not possible to measure the direct relationship between the variables. However, in this case the relationship will be partially measured. The first part measures the relationship between corporate ownership and corporate tax avoidance, and the second part measures the relationship between shareholder’s political motive and his ownership in the corporation. Results from multivariate data analysis show that there are significant relationships between variables in both partial relationships. Therefore, this study concludes that shareholder’s political motive is negatively related to corporate tax compliance level, and shareholder’s political motive is considered as factor that has significant negative influence on corporate tax avoidance’s decision. |
| format | Article |
| id | my-ukm.journal-9583 |
| institution | Universiti Kebangsaan Malaysia |
| language | en |
| publishDate | 2015 |
| publisher | Fakulti Ekonomi dan Pengurusan |
| record_format | eprints |
| spelling | my-ukm.journal-95832016-12-14T06:50:22Z http://journalarticle.ukm.my/9583/ Shareholder’s political motive and corporate tax avoidance Suryo Utomo, Mohd Rizal Palil, Romlah Jaffar, Rosiati Ramli, This paper describes the relationship between shareholder’s political motive and corporate tax avoidance using the Fraud-Risk Theory framework. Many corporate shareholders around the world actively participated in their country’s political arena, either as politicians or as donors to political parties. In order to maintain their political activities, they need easy, cheap and large sources of funds. One of the possible sources of funds is the undisbursed income tax payment to the government. However, this predicament has aroused the suspicion of taxation authorities on the extent of shareholder’s corporate tax compliance. Since corporate tax avoidance and shareholder’s political motives are attached to two different entities (corporations and individuals), it is not possible to measure the direct relationship between the variables. However, in this case the relationship will be partially measured. The first part measures the relationship between corporate ownership and corporate tax avoidance, and the second part measures the relationship between shareholder’s political motive and his ownership in the corporation. Results from multivariate data analysis show that there are significant relationships between variables in both partial relationships. Therefore, this study concludes that shareholder’s political motive is negatively related to corporate tax compliance level, and shareholder’s political motive is considered as factor that has significant negative influence on corporate tax avoidance’s decision. Fakulti Ekonomi dan Pengurusan 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9583/1/7229-33165-1-PB.pdf Suryo Utomo, and Mohd Rizal Palil, and Romlah Jaffar, and Rosiati Ramli, (2015) Shareholder’s political motive and corporate tax avoidance. Asian Journal of Accounting and Governance, 6 . pp. 27-36. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/748/showToc |
| spellingShingle | Suryo Utomo, Mohd Rizal Palil, Romlah Jaffar, Rosiati Ramli, Shareholder’s political motive and corporate tax avoidance |
| title | Shareholder’s political motive and corporate tax avoidance |
| title_full | Shareholder’s political motive and corporate tax avoidance |
| title_fullStr | Shareholder’s political motive and corporate tax avoidance |
| title_full_unstemmed | Shareholder’s political motive and corporate tax avoidance |
| title_short | Shareholder’s political motive and corporate tax avoidance |
| title_sort | shareholder’s political motive and corporate tax avoidance |
| url | http://journalarticle.ukm.my/9583/1/7229-33165-1-PB.pdf http://journalarticle.ukm.my/9583/ http://ejournal.ukm.my/ajac/issue/view/748/showToc |
| url_provider | http://journalarticle.ukm.my/ |