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The effect of tax preparers on corporate tax aggressiveness: Evidence form the UK context
Author(s) -
Assidi Soufiene,
Hussainey Khaled
Publication year - 2021
Publication title -
international journal of finance and economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.505
H-Index - 39
eISSN - 1099-1158
pISSN - 1076-9307
DOI - 10.1002/ijfe.1906
Subject(s) - economics , sample (material) , corporate tax , context (archaeology) , stock exchange , accounting , monetary economics , tax avoidance , business , double taxation , public economics , finance , paleontology , chemistry , chromatography , biology
This paper studies the role of tax preparers in tax aggressiveness. Based on a sample of 342 UK companies indexed on the Financial Times Stock Exchange (FTSE) 350 from 2006 to 2016, it finds that external tax preparers are more tax aggressive than internal ones. The result is explained by the capability of external preparers to take more aggressive tax positions than internal preparers because of their knowledge in different changes to tax law, and their higher expertise in this field. The findings has implications for managers, policymakers and researchers.