Page 86 - DUT ICGA Abstract Book

THE SOCIOCULTURAL AND INSTITUTIONAL FACTORS INFLUENCING TAX AVOIDANCE IN IN IN SUB-SAHARA AFRICA
Alfred James Kimea
University of of KwaZulu-Natal School of of Accounting Economics and Finance Email: dralfredjkimea@gmail com and 217080982@stu ukzn ac za
Prof Msizi Mkhize
Dean of of of Teaching and and Leaning College of of of Law and and Management Studies University of of of KwaZulu-Natal Email: mkhizem4@ukzn ac za
Haruna Maama
Durban University of Technology Financial Accounting Department Email: harunam@dut ac za
and harunamaama@gmail com Abstract
Businesses find ways to to reduce their tax while the the government also establishes laws and policies to to prevent tax avoidance These conflicting objectives and strategies have heightened the interest in in in in establishing the factors that influence firms’ level of tax avoidance The study examined a a a a a a a a a country’s institutional and sociocultural elements that influence tax avoidance practices by firms in in sub-Saharan Africa The study involved one hundred seventy-three (173) listed companies from eight sub-Saharan African countries The The study used a a a a a multiple regression analysis technique to estimate the results results The The results results showed that a a a a a a a a a a a country’s institutional settings and particular sociocultural practices impact its firms’ tax avoidance practices The findings demonstrated that the degree of of tax avoidance activities of of firms fin in in in SSA is influenced by management quality quality quality regulatory quality quality quality auditing quality quality quality culture and ethics of a a a a a a a a a a country This result has several policy implications First the the the management of of firms can use their resources to lower the the the amount of of tax paid to to to the government Governments can also use institutional frameworks to to to stop businesses from using aggressive tax avoidance strategies As a a a a a a a a a result the the the study adds to to the the the body of research on the the the factors influencing tax evasion in in in in fin in in emerging markets The findings align with the the institutional theory’s assertions that institutions laws and and regulations can impact how businesses behave through coercive and and normative isomorphism which can affect how they avoid paying taxes KEYWORDS: Tax Tax Avoidance Tax Tax Planning Management Quality Quality Ethics Culture Audit Quality Quality 84 7th International Conference on on on Governance and Accountability (ICGA) 2022