Volume 23, Issue 25 (2015)                   J Tax Res 2015, 23(25): 0-0 | Back to browse issues page

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rostaei darehmiane E, Dianati Dilami Z, Banimahd B. The Relationship between Firm’s Business Strategy and Level of Tax Avoidance in the Firms Listed at Tehran Stock Exchange. J Tax Res 2015; 23 (25)
URL: http://taxjournal.ir/article-1-192-en.html
1- University of Economic Sciences , rostaei.1989@yahoo.com
2- University of Economic Sciences
3- Islamic Azad University,Kaajr Branch
Abstract:   (8878 Views)

  

  Abstract

  A firm’s business-level strategy dictates how the firm competes in its chosen line of business. A firm can strengthen its business strategy by using a set of policies and activities to achieve a sustainable competitive advantage in its chosen market. The firms’ strategies are based on firms’ willingness to deal with risk and uncertainty, so the strategy that firms choose can affect the level of tax avoidance.Thus, this paper investigate the relationship between firm’s business strategy and level of tax avoidance. The results of the study on 65 firms in the period of 2004 until 2012 show that when tax avoidance is measured by long-run cash effective tax rate, there is a significant relationship between firm’s business strategy and long-run cash effective tax rate. The Results suggest that those firms that focus on minimizing and reducing costs, have fewer taxes avoidance than firms that follow a strategy focusing on opportunities for further growth and innovation in production. Also the results show that when tax avoidance is measured by book effective tax rate, there is no significant relationship between business strategy and book effective tax rate

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Type of Study: Research |
Received: 2014/12/8 | Accepted: 2015/03/11 | Published: 2015/06/20

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