Influence of corporate governance disclosure on tax evasion planning of listed company on the Stock Exchange of Thailand
Jumatas Kongsasone, Kusuma Dampitakse & Dararat Phoprachak
Abstract
This study examined the influence of corporate governance disclosures for tax evasion planning of 216 Thai companies listed on the Stock Exchange of Thailand. Data were collected from good corporate governance reports, corporate social responsibility report, sustainability disclosures, annual report (form 56-1), annual financial statements, and notes to the financial statements in 2018. Quantitative research method was considered appropriate for this study using Multiple Linear Regression for data analysis. The results revealed that the good corporate governance disclosures based on the eight principles of 2017 have a positive influence on tax evasion planning from reduction in net accounting profit and net taxable profit, and calculation of tax ratio (TXO) per cash flow from operation (CFO) (74%), at statistically significant level 0.01. The size of good corporate governance disclosures has an influence on tax evasion planning at statistically significant level 0.01. Good corporate governance principles of 2017 in this study have an influence on the tax evasion planning from reduction in net accounting profit and net taxable profits. By disclosing corporate governance information based on the eight principles of good corporate governance 2017, listed companies can be seen with fair practice in avoiding tax evasion as well as enhancing a company's image of transparency and reliability.
Keywords
good corporate governance, tax planning, tax evasion, tax evasion planning
Author information & Contribution
Jumatas Kongsasone. Corresponding author. Candidate for Master’s Degree of Business Administration, Faculty of Business Administration and Information Technology, Rajamangala University of Technology Suvarnabhumi, Thailand
Kusuma Dampitakse. Faculty of Business Administration, Rajamangala University of Technology Thanyaburi, Thailand
Dararat Phoprachak. Faculty of Business Administration and Information Technology, Rajamangala University of Technology Suvarnabhumi, Thailand
Disclosure statement
No potential conflict of interest was reported by the author(s).
Funding
This work was not supported by any funding.
Institutional Review Board Statement
AI Declaration
Notes
Acknowledgement
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Cite this article:
Jumatas Kongsasone, Kusuma Dampitakse & Dararat Phoprachak (2020). Influence of corporate governance disclosure on tax evasion planning of listed company on the Stock Exchange of Thailand. International Journal of Accounting, Finance and Education, 1(2), 1-18. https://doi.org/10.53378/345956
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