The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa
Businesses find ways to reduce their tax while the government also establishes laws and policies to prevent tax avoidance. These conflicting objectives and strategies have heightened the interest in establishing the factors that influence firms’ level of tax avoidance. The study examined a country’s...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2186744 |
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| author | Alfred James Kimea Msizi Mkhize Haruna Maama |
| author_facet | Alfred James Kimea Msizi Mkhize Haruna Maama |
| author_sort | Alfred James Kimea |
| collection | DOAJ |
| description | Businesses find ways to reduce their tax while the government also establishes laws and policies to prevent tax avoidance. These conflicting objectives and strategies have heightened the interest in establishing the factors that influence firms’ level of tax avoidance. The study examined a country’s institutional and sociocultural elements that influence tax avoidance practices by firms in sub-Saharan Africa (SSA). The study involved one hundred seventy-three (173) listed companies from eight sub-Saharan African countries. The study used a multiple regression analysis technique to estimate the results. The results showed that a country’s institutional settings and particular sociocultural practices impact its firms’ tax avoidance practices. The findings demonstrated that the degree of tax avoidance activities of firms in SSA is influenced by management quality, regulatory quality, auditing quality, culture, and ethics of a country. This result has several policy implications. First, the management of firms can use their resources to lower the tax paid to the government. Governments can also use institutional frameworks to stop businesses from using aggressive tax avoidance strategies. As a result, the study adds to the body of research on the factors influencing tax evasion in emerging markets. The findings align with the institutional theory’s assertions that institutions, laws, and regulations can impact how businesses behave through coercive and normative isomorphism, which can affect how they avoid paying taxes. |
| format | Article |
| id | doaj-art-e0d207d464384ee49fdeee232d2c6526 |
| institution | OA Journals |
| issn | 2331-1975 |
| language | English |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-e0d207d464384ee49fdeee232d2c65262025-08-20T02:15:50ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2023.2186744The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara AfricaAlfred James Kimea0Msizi Mkhize1Haruna Maama2The School of Accounting, Economics and Finance, University of KwaZulu Natal, School of Accounting, Economics and Finance, South AfricaThe School of Accounting, Economics and Finance, Dean of Teaching and Learning, College of Law and Management Studies, University of KwaZulu Natal, South AfricaDurban University of Technology, Financial Accounting Department, Durban, South AfricaBusinesses find ways to reduce their tax while the government also establishes laws and policies to prevent tax avoidance. These conflicting objectives and strategies have heightened the interest in establishing the factors that influence firms’ level of tax avoidance. The study examined a country’s institutional and sociocultural elements that influence tax avoidance practices by firms in sub-Saharan Africa (SSA). The study involved one hundred seventy-three (173) listed companies from eight sub-Saharan African countries. The study used a multiple regression analysis technique to estimate the results. The results showed that a country’s institutional settings and particular sociocultural practices impact its firms’ tax avoidance practices. The findings demonstrated that the degree of tax avoidance activities of firms in SSA is influenced by management quality, regulatory quality, auditing quality, culture, and ethics of a country. This result has several policy implications. First, the management of firms can use their resources to lower the tax paid to the government. Governments can also use institutional frameworks to stop businesses from using aggressive tax avoidance strategies. As a result, the study adds to the body of research on the factors influencing tax evasion in emerging markets. The findings align with the institutional theory’s assertions that institutions, laws, and regulations can impact how businesses behave through coercive and normative isomorphism, which can affect how they avoid paying taxes.https://www.tandfonline.com/doi/10.1080/23311975.2023.2186744Tax avoidancetax planningmanagement qualityethicscultureaudit quality |
| spellingShingle | Alfred James Kimea Msizi Mkhize Haruna Maama The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa Cogent Business & Management Tax avoidance tax planning management quality ethics culture audit quality |
| title | The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa |
| title_full | The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa |
| title_fullStr | The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa |
| title_full_unstemmed | The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa |
| title_short | The Sociocultural and Institutional factors influencing Tax Avoidance in sub-Sahara Africa |
| title_sort | sociocultural and institutional factors influencing tax avoidance in sub sahara africa |
| topic | Tax avoidance tax planning management quality ethics culture audit quality |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2186744 |
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