EVALUATING TAX PLANNING AND CORPORATE GOVERNANCE

Abstract

Taxation plays a vital role both in a nation and in a corporation. For a nation it is one of the main income sources, while for the corporation taxes will minimizing corporate net income. To reducing the tax payment, corporation dealing a corporate tax planning according to few past researches, there are a correlation in corporate governance deputy could be used in corporate governance research, in this research we are focusing on three number of board, number of independent board and board compensation. We calculate corporate tax planning by using effective tax rate (GAAP ETR and current ETR are used in this research). By using many other control variables, we run the regression and manner the statistical analysis to examine the correlation between corporate governance corporate tax planning. Our result represent the corporate governance have an important correlation to corporate tax planning.