Category: FourA 2017
Download: Download


In the context of tax system in developing countries, this study examines the effect of internal control quality on tax aggressiveness. Taking China as a unique developing country, we find that better internal control quality is associated with lower corporate tax aggressiveness and smaller tax risk. Further, we take into consideration the impact of regional tax enforcement. The negative effect of internal control quality on tax aggressiveness is less pronounced in the regions with higher tax enforcement. Our results indicate that internal control can depress corporate tax risk in developing countries with lower investor protection. Moreover, these findings show that internal control plays a vital role in corporate risk management and it also has important implications for governments in developing countries in promotion of internal control construction in future.

Keywords: Internal control, tax aggressiveness, tax enforcement, developing countries, China

FourA Digital Library

Contact Us

Asian Academic Accounting Association
Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia 06010 UUM Sintok, Kedah, Malaysia
P: +604 928-7351
Dr. Aidi Ahmi
[email protected]

Link with Us

Get Connected