Providing a Comprehensive Model of Corporate Tax Avoidance Index Calculation

One of the most important issues that is currently considered in most researches is the discussion of avoidance and its influencing factors and the results. Theoretically, tax avoidance is an attempt to reduce tax payments, so many companies appear to be involved in tax avoidance, so determining the factors that influence the level of tax avoidance in companies is important so far as a comprehensive indicator for it is not provided. Therefore, this study presents a comprehensive index for assessing tax avoidance by considering different indices using mathematical method. Also for testing and evaluation of the designed model, data from 152 companies during 2012-2019 were used in mixed method. For this purpose, a questionnaire was prepared and distributed among the experts about the weight and importance of the criteria considered for measuring corporate tax avoidance and the weight and importance of criteria were determined using one of the methods of multi-criteria decision making model (Shannon entropy). Confirmatory factor analysis was also used to measure the hidden variable relationships in this tax avoidance study; the results show that the proposed model is a good indicator for tax avoidance.