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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Company Characteristics, Non-Audit Services Fee and Aggressive Tax Planning: A Conceptual Framework

Rosmaria Jaffar, Chek Derashid, Roshaiza Taha

http://dx.doi.org/10.6007/IJARBSS/v11-i1/9036

Open access

This study aims to propose a research model on aggressive tax planning behaviour among listed companies in the Malaysian ACE market. There is no mutual decision on the relationship between company characteristics and tax planning in previous studies. Based on a thorough review of previous studies, the inconsistency was due to the utilization of other variables. Therefore, in this study, we introduced the moderating variable of non-audit services fee. Referring to the agency theory, non-audit services fee play a significant role in the relationship between company characteristics and aggressive tax planning behaviour since this fee is also one of the operating costs bear by companies. To have a deeper understanding on the role of non-audit services fee, this study will analyze further the role of this fee by introducing this fee as a moderator to see the interaction in the relationship between company characteristics and aggressive tax planning. It is hoped that the information provided in this study may help in understanding the role of non-audit services fee in reducing the companies tax burden. Besides, tax authorities may use the information in this paper as one of the criteria in choosing the sample for audit purposes.

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In-Text Citation: (Jaffar et al., 2021)
To Cite this Article: Jaffar, R., Derashid, C., & Taha, R. (2021). Company Characteristics, Non-Audit Services Fee and Aggressive Tax Planning: A Conceptual Framework. International Journal of Academic Research in Business and Social Sciences, 11(1), 994-1004.