The Impact of Board Independence on the Relationship between Cash Earnings Policy and Corporate Tax Avoidance

Taxation is one of the main sources of funding for all governments. This burden is financed by firms and businessmen who do not generally consider taxation desirable. Firms and their managers tend to tax evasion and tax avoidance. These incentives for non-taxpayers are affected by various conditions and characteristics, such as the characteristics of the industry, the ability to market products, the concentration of industry groups, and tax policies. The purpose of the present study is to investigate the effect of board independence on the relationship between monetary policy and tax avoidance. This research is applied in terms of purpose and methodology is causal in nature. The statistical population of the study is all the listed companies active in Tehran Stock Exchange, which were systematically sampled by 92 companies. The research period is 2009-2010. Regression analysis was used to test the hypothesis. The results show that the independence of the board of directors does not have a significant effect on the relationship between cash dividend policy and tax avoidance.