TRENDS IN CORPORATE INCOME TAX AVOIDANCE IN SMALL AND MEDIUM ENTERPRISES: AN EARLY EVIDENCE
Keywords:
corporate tax avoidance; relationship between accounting and tax; SMEs; effective tax rate; Book-Tax difference
Abstract
The paper’s aim is to seek early evidence of SMEs’ corporate tax avoidance. Based on a sample of the SMEs placed in a district, using two proxies to measure SME’s corporate tax avoidance, namely BTD and ETR, the result shows that the SMEs have tend to avoid corporate taxes and this behavior is no different between business groups in terms of industry and sizes. The result provides an early evidence for future research on corporate tax avoidance of this SMEs.