The Role And Ability Of Managers In Tax Avoidance And Corporate Profitability

Paying taxes leads to a reduction in profits and cash remaining for the company's stakeholders, including shareholders, so there is a natural incentive for the company, shareholders and other governing agents to take steps to avoid taxes and thus reduce tax payments. . Tax evasion is the use of legal loopholes in tax law to reduce taxes, which can be done by transferring revenue to a low-tax area or transfer pricing. In most researches that have been done so far with the aim of explaining the factors affecting tax avoidance, the emphasis has been on each specific feature of companies; Recent research, however, examines the ability and role of board members and managers as one of the most important determinants of tax avoidance. The results of previous research show that one of the determinants of tax avoidance is the concept of management ability. The purpose of this study is to review the impact of management ability on tax avoidance. The statistical population of these studies consists of companies listed on the stock exchange. The results show that companies with better performance, managers with a high level of ability are less involved in tax avoidance activities. In general, the research results show In addition to the characteristics of the company, managerial ability is effective on the tax evasion behavior of the company