Government ownership and corporate tax avoidance: empirical evidence from Malaysia

While there have been substantial improvements in the performance of Government-linked Companies (GLCs) in Malaysia in the recent past, their tax planning activities remain a mystery. With government supports, GLCs seem to benefit more from tax avoidance practices. Given this, and in line with t...

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Main Authors:	Salihu, Ibrahim Aramide, Sheikh Obid, Siti Normala, Annuar, Hairul Azlan
Format:	Conference or Workshop Item
Language:	English
Published:	Pak Publishing Group 2014
Subjects:	HF Commerce
Online Access:	http://irep.iium.edu.my/36089/ http://irep.iium.edu.my/36089/ http://irep.iium.edu.my/36089/1/hairul_azlan.pdf

id	iium-36089
recordtype	eprints
spelling	iium-360892015-10-15T08:50:50Z http://irep.iium.edu.my/36089/ Government ownership and corporate tax avoidance: empirical evidence from Malaysia Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan HF Commerce While there have been substantial improvements in the performance of Government-linked Companies (GLCs) in Malaysia in the recent past, their tax planning activities remain a mystery. With government supports, GLCs seem to benefit more from tax avoidance practices. Given this, and in line with the call on investigating the role of government ownership in corporate tax planning by Hanlon and Heitzman (2010), this study investigates the influence of substantial government ownership on corporate tax avoidance. The data for the investigation came from the top 100 Malaysian companies based on FTSE tradable index over a three-year financial period. The results of the system GMM estimation of the dynamic panel data models using four similar measures of tax avoidance show an inconclusive finding. The relationship between government ownership and corporate tax avoidance is documented for only two of the measures. A further qualitative enquiry through personal interview sessions with ten tax auditors of IRBM was conducted to better understand the scenario. The results of the analysis of responses show a similar inconclusive finding. It was therefore concluded that Malaysian GLCs are somehow complex in tax related matters. Following this conclusion, GLCs in Malaysia need to be more transparent in tax compliance matters to restore the public confidence Pak Publishing Group 2014 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/36089/1/hairul_azlan.pdf Salihu, Ibrahim Aramide and Sheikh Obid, Siti Normala and Annuar, Hairul Azlan (2014) Government ownership and corporate tax avoidance: empirical evidence from Malaysia. In: International Conference on Emerging Trends in Scientific Research, 15-16 March 2014, Pearl International Hotel, Kuala Lumpur. http://pakinsight.com/?ic=book_detail&id=3
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce
spellingShingle	HF Commerce Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan Government ownership and corporate tax avoidance: empirical evidence from Malaysia
description	While there have been substantial improvements in the performance of Government-linked Companies (GLCs) in Malaysia in the recent past, their tax planning activities remain a mystery. With government supports, GLCs seem to benefit more from tax avoidance practices. Given this, and in line with the call on investigating the role of government ownership in corporate tax planning by Hanlon and Heitzman (2010), this study investigates the influence of substantial government ownership on corporate tax avoidance. The data for the investigation came from the top 100 Malaysian companies based on FTSE tradable index over a three-year financial period. The results of the system GMM estimation of the dynamic panel data models using four similar measures of tax avoidance show an inconclusive finding. The relationship between government ownership and corporate tax avoidance is documented for only two of the measures. A further qualitative enquiry through personal interview sessions with ten tax auditors of IRBM was conducted to better understand the scenario. The results of the analysis of responses show a similar inconclusive finding. It was therefore concluded that Malaysian GLCs are somehow complex in tax related matters. Following this conclusion, GLCs in Malaysia need to be more transparent in tax compliance matters to restore the public confidence
format	Conference or Workshop Item
author	Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan
author_facet	Salihu, Ibrahim Aramide Sheikh Obid, Siti Normala Annuar, Hairul Azlan
author_sort	Salihu, Ibrahim Aramide
title	Government ownership and corporate tax avoidance: empirical evidence from Malaysia
title_short	Government ownership and corporate tax avoidance: empirical evidence from Malaysia
title_full	Government ownership and corporate tax avoidance: empirical evidence from Malaysia
title_fullStr	Government ownership and corporate tax avoidance: empirical evidence from Malaysia
title_full_unstemmed	Government ownership and corporate tax avoidance: empirical evidence from Malaysia
title_sort	government ownership and corporate tax avoidance: empirical evidence from malaysia
publisher	Pak Publishing Group
publishDate	2014
url	http://irep.iium.edu.my/36089/ http://irep.iium.edu.my/36089/ http://irep.iium.edu.my/36089/1/hairul_azlan.pdf
first_indexed	2023-09-18T20:51:39Z
last_indexed	2023-09-18T20:51:39Z
_version_	1777410034894897152

Government ownership and corporate tax avoidance: empirical evidence from Malaysia

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