Asia-Pacific Journal of Business (아태비즈니스연구)

KNU The Institute of Management & Economy Research (강원대학교 경영경제연구소)
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Does Book-Tax Conformity Reduce a Corporate Tax Avoidance?: Analysis of Conforming Tax Avoidance and Non-conforming Tax Avoidance

회계이익과 과세소득의 일치가 기업의 조세회피를 줄이는가?: 순응적 조세회피와 비순응적 조세회피에 관한 분석

  • Ki, Eun-Sun (Division of Business Administration and Accounting, Kangwon National University) ;
  • Kim, Hyoeun (Department of Accounting, College of Business Administration, University of Ulsan)
  • 기은선 (강원대학교 경영회계학부) ;
  • 김효은 (울산대학교 경영대학 회계학과)
  • Received : 2022.02.28
  • Accepted : 2022.03.25
  • Published : 2022.03.30
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Abstract

Purpose - The purpose of this study is to examine the effect of book-tax conformity on conforming tax avoidance and non-conforming tax avoidance. Design/methodology/approach - This study uses financial data from 1996 to 2019 of 34 countries. We regress conforming or non-conforming tax avoidance on book-tax conformity. We use the book-tax conformity measure developed by Atwood et al. (2010), the non-conforming tax avoidance measure developed by Desai and Dharmapala (2006), and the conforming tax avoidance measure developed by Badertscher et al. (2019). Findings - First, book-tax conformity has a significant positive relationship with non-conforming tax avoidance. Second, book-tax conformity is not statistically related to conforming tax avoidance. Research implications or Originality - While prior research focuses on the effect of book-tax conformity on earnings quality, we examine on the effect on tax avoidance. Furthermore, this study is expected to provide important policy implications regarding the types of tax avoidance strategies that tax authorities should pay attention to. Our results imply that tax authorities in countries with high book-tax conformity should pay more attention to non-conforming tax avoidance than to conforming tax avoidance.

Keywords

Acknowledgement

이 논문은 2020년 대한민국 교육부와 한국연구재단의 인문사회분야 신진연구자지원사업의 지원을 받아 수행된 연구임 (NRF-2020S1A5A8045454)

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