Contemporary Issues in Accounting

Running head: CONTEMPORARY ISSUES IN ACCOUNTING
CONTEMPORARY ISSUES IN ACCOUNTING
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CONTEMPORARY ISSUES IN ACCOUNTING1
Discussion
The topic of the chosen article is impact of the corporate governance on the corporate
tax avoidance. The article is further taken from the journal of international accounting,
auditing and taxation. The term corporate governance is referred to as the particular sets of
norms which are applied by the upper level management of the organization. The internal
along with the external factors also creates impacts on the interest of shareholders. The board
of directors of the company are further responsible for such kind of framework laid ion the
corporate governance.
Based on the purpose of this article it can be said that the most of the upper level
management of the company is further responsible of the problems regarding the principle
agent. The mechanism of the corporate governance is further related to the avoidance of tax.
Each and every company’s main objective is to avoid the payment of tax on a large scale. For
the reason the company tries to make a lot of investment s in order to lower the profit so that
the company doesn’t have to pay a lot of money for tax. The board of directors and the key
stakeholders of the business attends the meeting for the purpose to make the concept of
corporate governance within the management system of the company much more efficient
and effective for the purpose of avoiding tax (Kovermann and Velte 2019).
If the principle agency concept in the business does not work then it will be huge
problem from the company for the purpose of avoiding the potential tax in the business. In
this case it is significant to determine the corporate tax avoidance which is considered as the
comprehensive approach by taking the stakeholders and the members of the corporate
governance into association.