DETERMINANTS OF THE CORPORATE INCOME TAX AVOIDANCE – A BRIEF LITERATURE REVIEW
DETERMINANTS OF THE CORPORATE INCOME TAX AVOIDANCE – A BRIEF LITERATURE REVIEW

Author(s): Costel Istrate
Subject(s): Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: corporate income tax; tax avoidance proxies; tax avoidance determinants
Summary/Abstract: Tax avoidance is the subject of o large number of studies. I choose to analyse these studies by grouping them in three main categories: proxies used to measure the tax avoidance, tax avoidance determinants (this study) and tax avoidance influences on other variables. Analysing almost 80 papers, I identified a long list of factors that can influence the level of tax avoidance practiced by companies, in terms of income tax, and I grouped these factors into several categories. I proposed, first, factors related to the personal and professional profiles of the members of the company's management, after which I analysed factors related to corporate governance, but also to geographical and institutional characteristics. The list of determinants can be continued with factors related to the ownerships structure and the listing of companies on a stock market, as well as with influences of all kinds of crisis (financial, pandemic, at regional or global level). At the same time, I considered elements of a reputational nature that influence the tax avoidance practices of companies, as well as technological developments, company strategies, life cycle phase.

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