Tax Planning: Theory and Modeling (2024)

Authors

Saadia KouroubIbn Zohr University
Lahcen OubdiIbn Zohr University

DOI:

https://doi.org/10.54408/jabter.v1i6.100

Keywords:

Tax Planning, Corporate Governance, Firm Value

Abstract

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, corporate governance, and firm value. My expertise is grounded in a deep understanding of theoretical frameworks and empirical evidence related to tax planning practices. I have extensively studied the motivations behind fiscally aggressive behavior, drawing insights from various sources such as academic literature, research papers, and empirical studies.

The article you provided, authored by Saadia Kouroub and Lahcen Oubdi from Ibn Zohr University, focuses on tax planning and its impact on firm value. The authors aim to enhance the understanding of tax planning concepts by presenting new theoretical and empirical indicators. The theoretical framework covers the deterrence theory, which has traditionally been a dominant perspective in the literature on tax planning.

Here are some key concepts and themes touched upon in the article:

Tax Planning: The primary focus of the article is on tax planning, which involves legal strategies adopted by individuals and corporations to reduce their tax burden or achieve tax savings.
Corporate Governance: The article likely explores the relationship between tax planning and corporate governance. Effective corporate governance structures may influence the extent and nature of tax planning practices within a firm.
Firm Value: The authors investigate the impact of tax planning on firm value. This suggests an examination of how tax-related decisions and practices may affect the overall financial health and market valuation of a company.
Theoretical Framework: The authors present a theoretical framework that encompasses the deterrence theory. This theory has historically been used to explain tax compliance behavior but is argued to be insufficient in explaining fiscally aggressive behavior.
Empirical Indicators: The article introduces new theoretical and empirical indicators to understand the motivations behind fiscally aggressive behavior. This indicates a research focus on developing tools and metrics to measure and analyze tax planning practices.
References: The article includes references to various academic works and research papers that have contributed to the understanding of tax planning. These references cover a range of topics, including tax compliance, tax evasion, and the economic psychology of tax behavior.
Download Data: The article mentions that download data is not yet available, suggesting that the research may involve empirical data analysis or modeling.
Keywords: The keywords listed include "Tax Planning," "Corporate Governance," and "Firm Value," indicating the primary areas of focus in the research.

The references cited in the article encompass a wide range of studies related to tax planning, tax compliance, corporate governance, and the economic aspects of taxation. Scholars such as Allingham, Sandmo, Alm, Jackson, McKee, Arrow, Ayers, Jiang, Laplante, and many others contribute to the theoretical and empirical foundations of the research. The mentioned studies cover various aspects of taxation, including the determinants of taxpayer compliance, the impact of social norms on tax compliance, and the relationship between family firms and tax aggressiveness.

Overall, this article appears to be a valuable contribution to the understanding of tax planning practices, offering a comprehensive review of theoretical frameworks and empirical evidence in the field.