Journal article
Tax control and corporate VAT compliance: An empirical assessment of the moderating role of tax strategy
Journal of international accounting, auditing & taxation, Vol.57, 100655
12/2024
DOI: 10.1016/j.intaccaudtax.2024.100655
Abstract
Tax control frameworks (TCF) of higher quality are seen by tax authorities and the OECD as a prerequisite for corporate tax compliance. However, a higher quality TCF can also enable organizations to reduce their tax burden by providing information that allows them to make the best use of opportunities within the boundaries of the tax law. We investigate the effect of TCF quality on tax compliance by looking at the tax strategy of the organization and whether the organization unintentionally or intentionally fails to comply. We focus on Value Added Tax (VAT) and test our hypotheses using a sample of large organizations, using a combination of survey data and tax audit results from the Netherlands. Our results show that a TCF of higher quality is positively associated with VAT compliance, resulting in both less unintentional and less intentional errors requiring tax adjustment. For organizations with a more conservative tax strategy, we find that the quality of the TCF does not affect the level of intentional non-compliance. For organizations with a more aggressive tax strategy, however, the level of intentional non-compliance is conditional upon the quality of the TCF, with a lower (higher) quality TCF leading to more (less) intentional non-compliance.
Details
- Title: Subtitle
- Tax control and corporate VAT compliance: An empirical assessment of the moderating role of tax strategy
- Creators
- Maarten A. Siglé - Nyenrode Business UniversitySjoerd Goslinga - Netherlands Tax Administration, the NetherlandsLisette E.C.J.M. van der Hel - Nyenrode Business UniversityRyan J. Wilson - University of Iowa, Iowa City, IA 52242, USA
- Resource Type
- Journal article
- Publication Details
- Journal of international accounting, auditing & taxation, Vol.57, 100655
- DOI
- 10.1016/j.intaccaudtax.2024.100655
- ISSN
- 1061-9518
- eISSN
- 1879-1603
- Publisher
- Elsevier Inc
- Grant note
The authors declare the following financial interests/personal re-lationships which may be considered as potential competing interests: Maarten Sigleand Sjoerd Goslinga work for the Netherlands Tax Administration (NTA) . Their contribution to this paper is written in a personal capacity and does not necessarily reflect statements and/or opinions of the NTA. For Ryan Wilson and Lisette van der Hel there is no declaration of interest. This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
- Language
- English
- Electronic publication date
- 10/02/2024
- Date published
- 12/2024
- Academic Unit
- Accounting
- Record Identifier
- 9984721232102771
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