Corporate tax avoidance from a governance perspective: motivations, channels and policy implications

Abstract

Corporate tax avoidance is a central theme in accounting and finance research, particularly in the context of globalization and the rise of intangible-asset-intensive business models. This article provides a systematic review of prominent international studies to clarify the economic-managerial motivations and the primary technical channels of corporate tax avoidance behavior, while relating these findings to the context of emerging economies like Vietnam. Based on the Agency Framework and Positive Accounting Theory, the article demonstrates that tax avoidance is not an isolated act but the result of interactions between objectives to maximize after-tax cash flows, agency conflicts, incentive structures and the quality of corporate governance. Technically, synthesized evidence confirms the dominant role of non-financial channels - linked to transfer pricing and intangible assets - alongside financial channels based on capital structure and internal debt shifting. Conversely, other techniques such as treaty shopping or tax deferral have seen a relative decline in significance following global anti-base erosion initiatives. The article proposes a consolidated framework linking motivations, avoidance channels, and policy implications, thereby elucidating the specific characteristics of tax avoidance within the emerging market context.