AN ASSESSMENT OF SHAREHOLDERS PROFITABILITY AS A STRATEGY FOR TAX AVOIDANCE.
Keywords:
Corporate Governance, Shareholders, Wealth Maximization, Tax, Avoidance
Abstract
Tax avoidance is a common problem among many nations all over the world, especially the developing and third world countries. Most citizens see tax payment as very offensive, and seek all means to avoid tax liabilities. Kenya is not exempted from this economic menace. In spite of the several tax holidays enjoyed by firms in Kenya, most firms have resorted to creatively avoid tax under the disguise of shareholders wealth maximization. This act is seen by the researchers as a corporate governance factor because the provision of bonus schemes by shareholders for managers for abnormal wealth maximization had justified the act of tax avoidance in the Kenyan corporate world.
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References
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[15] Jain Tarun (2012) GAAR and Corporate Governance will the stick Do the trick: Journal on Governance vol. 1 No. 6. pp. 629-674.
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[19] Langat, G. K., Nyangau, A.S., Chesoli, W. (2019). An assessment of the effect of Financial Management Practices on the Profitability of Tea Firms in Kenya: A Case of KTDA factories in Kericho County, Kenya. IJARKE – Business and Management Journal. Volume 2, Issue 1, Aug – Oct, 2019.
[20] Lanis R & G. Richardson (2012) Corporate Social Responsibility and tax Aggressiveness. An empirical analysis. 31 journal of accounting and public policy. Analyzing public-listed Austrian corporations.
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[25] Ofunya, J. K., Wafula, J. C., Ngacho C. (2020). Influence of Working Capital Management Practices on Profitability of Small and Medium Enterprises in the Manufacturing sector in Eldoret Town, Kenya. IJARKE – Business and Management Journal. Volume 3, Issue 1, Aug – Oct, 2020.
[26] Ojaide F. (2005) Revenue Mobilization & Resource control in Nigeria. The Nigerian Accountant. Ola
[27] Oseko, M.V., Maobe, A., Wafula, J. (2022). Effect of dividend Policy on shareholder’s wealth maximization of Blue Chip Firms at the Nairobi Securities Exchange. IJARKE – Business and Management Journal. Volume 4, Issue 1, Nov, 21 – Jan, 2022.
[28] Talibong, A., Chesoli, W., Mogwambo, (2019). Examining the effect of Lending Policies on the Profitability of Commercial Banks in Nakuru Town, Kenya. IJARKE – Business and Management Journal. Volume 2, Issue 1, Aug – Oct, 2019.
[2] Appah E. & J.K. Oyadonghan (2011). The challenges of Tax mobilization and management in Kenyan Economy. Journal of business Administration and management, vol. 6 No. 2 pp. 128-136.
[3] Appah E. (2010). The problems of Tax Planning & administration in Kenya. The Fed. & State Local Govt. Experience” International Journal of Labour & Organizational Psychology vol. 3 (182)
[4] Azubike J.U.B. (2009). Challenges of Tax Authorities, Tax payers in the management of Tax Reform process. The Nigerian Accountant. Vol. 42. No. 2 Rg. 36-42.
[5] Bhartia, H.L. (2004) Public finance. New Delhi. Vikas publishing House PVT Ltd.
[6] C.S. (2001) Income Tax Law & Practice in Nigeria. Lagos Heinemann Educational Books Ltd.
[7] Chesoli, J. W. (2017). Accounting Procedures of Small Business Enterprises in Trans Nzoia County, Kenya. IJRDO- Journal of Business Management Volume 3, Issue-5 May, 2017 ISSN: 2455- 6661. Available online at: http://ijrdo.org
[8] Chesoli, J. W. (2017). Assessing the effect of working capital Management on the Business Profitability. IJIRDO –Business and Management Journal. Volume 4, Issue 2
[9] Chesoli, J. W. (2018). Assessing the Effect of Working Capital Management on the Business Profitability. IJIRDO – Journal of Business and Management. Volume 4 Issue 2 Pgs 72 – 91 doi.org/10.53555/bm.v4i2.1860 ISSN: 2455-6661. Available online at: http://ijrdo.org
[10] Chesoli, J. W.(2017). Assessing the Effects of the Accounting Information System under the Enterprise Resources Planning. IJRDO-Journal of Business Management Volume 3 Issues 6 June 2017. ISSN: 2455- 6661. Available online at: http://ijrdo.org
[11] Chesoli, J. W.(2017). Assessing the Reward Techniques that Motivate Employees in Business Organizations. Economic and Finance Review Vol.5 (02) pp.01-04, June, 2017. Available online at http: //www.businessjournalz.org/efr
[12] Chesoli, J. W.(2017). The role of Auditors in ensuring effective financial control at County Government level: The case of Trans Nzoia County, Kenya. IJRDO-Journal of Business Management Volume 3 Issues 7 July 2017. ISSN: 2455- 6661.Available online at: http://ijrdo.org
[13] Chesoli, J. W.(2018) Employee Involvement in Decision Making on Performance of SME’s in Kitale, Trans Nzoia County, Kenya. IJIRDO – Journal of Business and Management Volume 4 Issue 2 Pgs 65 – 71 ISSN: 2455- 6661. Doi.org/10.53555/bm.v4i2.1859. Available online at: http://ijrdo.org
[14] Desai M. & D. Dharmapala (2007) Taxation and Corporate Governance: An Economic Approach. chapter contribution for conference on taxation and corporate Governance at the max planck institute, Munich.
[15] Jain Tarun (2012) GAAR and Corporate Governance will the stick Do the trick: Journal on Governance vol. 1 No. 6. pp. 629-674.
[16] Jhingan M.L. (2004) Money, Banking, International Trade and public Finance. New Delhi. Vrinda publications
[17] Kefela T.E. (2009) Reforming Tax policies & Revenue Mobilization promotes a fiscal Responsibility. A case study of East & West African states: Journal of Law and conflict Resolution vol. (5) pg. 98-106.
[18] Kiabel D.B. & N.N. Nowikpasi (2012) selected aspects of Nigerian Taxes. Owerri, Springfield publishers ltd.
[19] Langat, G. K., Nyangau, A.S., Chesoli, W. (2019). An assessment of the effect of Financial Management Practices on the Profitability of Tea Firms in Kenya: A Case of KTDA factories in Kericho County, Kenya. IJARKE – Business and Management Journal. Volume 2, Issue 1, Aug – Oct, 2019.
[20] Lanis R & G. Richardson (2012) Corporate Social Responsibility and tax Aggressiveness. An empirical analysis. 31 journal of accounting and public policy. Analyzing public-listed Austrian corporations.
[21] Leuky S; R. Lanis & G. Richardson (2012) Corporate tax-Aggressiveness, outside Directors and debt policy; An Empirical Analysis-paper presented at the Annual Meeting of American Taxation Association.
[22] Musgrave R.A. & P.B. Musgrave (2004) Public finance in theory and practice. New Delhi. Tata McGraw Hill.
[23] Nwachukwu C.C. (2007) Management theory and practice. Onitsha: Africana fep. Publishers ltd. (FEP).
[24] Nzotta S.M. (2007) Tax Evasion problems in Nigeria. A critique: The Nigerian Accountant. Vol. 40 No. 2 pg. 40-43.
[25] Ofunya, J. K., Wafula, J. C., Ngacho C. (2020). Influence of Working Capital Management Practices on Profitability of Small and Medium Enterprises in the Manufacturing sector in Eldoret Town, Kenya. IJARKE – Business and Management Journal. Volume 3, Issue 1, Aug – Oct, 2020.
[26] Ojaide F. (2005) Revenue Mobilization & Resource control in Nigeria. The Nigerian Accountant. Ola
[27] Oseko, M.V., Maobe, A., Wafula, J. (2022). Effect of dividend Policy on shareholder’s wealth maximization of Blue Chip Firms at the Nairobi Securities Exchange. IJARKE – Business and Management Journal. Volume 4, Issue 1, Nov, 21 – Jan, 2022.
[28] Talibong, A., Chesoli, W., Mogwambo, (2019). Examining the effect of Lending Policies on the Profitability of Commercial Banks in Nakuru Town, Kenya. IJARKE – Business and Management Journal. Volume 2, Issue 1, Aug – Oct, 2019.
Published
2023-03-07
How to Cite
Chesoli, J. (2023). AN ASSESSMENT OF SHAREHOLDERS PROFITABILITY AS A STRATEGY FOR TAX AVOIDANCE. IJRDO - Journal of Business Management, 9(3), 1-5. https://doi.org/10.53555/bm.v9i3.5583
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