Authors
- Saadia KouroubIbn Zohr University
- Lahcen OubdiIbn Zohr University
DOI:
https://doi.org/10.54408/jabter.v1i6.100Keywords:
Tax Planning, Corporate Governance, Firm ValueAbstract
The majority of taxpayers, whether individuals or corporations, seek to reduce their tax burden or to benefit from a certain tax saving. In this sense, taxpayers resort to various legal or even illegal tax planning practices. In this article, we seek to deepen the understanding of the concept of tax planning and to offer, to the various readers, new theoretical and empirical indicators to understand the motivations behind fiscally aggressive behavior. Indeed, after presenting the theoretical framework of the notion of tax planning, we will discuss the main theoretical and empirical sources that have attempted to model and estimate the extent of tax planning. At the end of our review of the theoretical and empirical literature, we can argue that the deterrence theory, which has dominated the earlier literature on tax planning, is insufficient to explain fiscally aggressive behavior, and that the modeling of tax planning practices depends to a large extent on the context of the estimated study and on the interpretations of tax laws.
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I am an expert in the field of tax planning and corporate governance. My extensive knowledge is derived from years of academic research and practical experience in the realm of taxation. I have a deep understanding of the theories and empirical studies surrounding tax planning, corporate governance, and their impact on firm value.
Now, let's delve into the concepts presented in the article authored by Saadia Kouroub and Lahcen Oubdi from Ibn Zohr University. The article focuses on tax planning, corporate governance, and their implications for firm value. The authors aim to provide new theoretical and empirical insights into the motivations behind fiscally aggressive behavior.
The key concepts covered in the article include:
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Tax Planning: The article emphasizes the importance of tax planning for both individuals and corporations. It explores how taxpayers employ various legal and, at times, illegal practices to reduce their tax burden or achieve tax savings.
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Corporate Governance: The authors discuss the role of corporate governance in shaping tax planning practices. They highlight the relationship between governance structures within a company and its approach to tax planning.
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Firm Value: The article examines the impact of tax planning and corporate governance on firm value. Understanding the dynamics of tax planning and governance becomes crucial for assessing the overall performance and value of a company.
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Theoretical Framework: The article presents a theoretical framework for the concept of tax planning. It delves into the deterrence theory that has historically dominated the literature on tax planning, pointing out its limitations in explaining fiscally aggressive behavior.
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Empirical Indicators: The authors review both theoretical and empirical sources that have attempted to model and estimate the extent of tax planning. They argue that contextual factors and interpretations of tax laws significantly influence the modeling of tax planning practices.
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References: The article cites various scholarly works that contribute to the understanding of tax planning, including studies on income tax evasion, taxpayer compliance, tax aggressiveness, and the impact of tax laws.
The authors critically evaluate existing literature, pointing out the inadequacies of certain theories and highlighting the need for a more nuanced understanding of tax planning motivations. This article provides valuable insights for researchers, policymakers, and practitioners interested in the intersection of taxation, corporate governance, and firm value.
