Corporate tax avoidance activities remain unresolved issues faced by the various tax authorities. Corporate tax avoidance is a strategy undertaken by companies in minimizing their tax liabilities.The transformations in the tax systems give opportunities to companies to manage their tax affairs to benefit their shareholders. Companies tend to engage in aggressive corporate tax avoidance to increase their business income. By employing the longitudinal approach, this study analysed the relationship between the financial motives and corporate tax avoidance level of 7,632 firm-years among public listed companies from the year 2002 to 2017.The regression results from the pooled OLS regression model indicated that financial motives such as capital intensity, return on asset, leverageand audit quality have a significant relationship with corporate tax avoidance. Thus, the findings implied that companies’ financial motives could be used as indicators to identify aggressive tax avoidance in the capital markets.
Volume 12 | Issue 1