The impact of corporate governance on implicit taxes

Revista Catarinense da Ciência Contábil

Av. Osvaldo Rodrigues Cabral, 1900, - Centro
Florianópolis / SC
Telefone: (48) 3027-7006
ISSN: 2237-7662
Editor Chefe: Rogério João Lunkes
Início Publicação: 30/11/2001
Periodicidade: Anual
Área de Estudo: Ciências Contábeis

The impact of corporate governance on implicit taxes

Ano: 2023 | Volume: 22 | Número: Não se aplica
Autores: Antonio Lopo Martinez, Raimundo da Silva, Alfredo Sarlo Neto
Autor Correspondente: Antonio Lopo Martinez | [email protected]

Palavras-chave: corporate governance, implicit taxes, explicit taxes, taxation

Resumos Cadastrados

Resumo Inglês:

Implicit taxes reduce the pre-tax return rate due to investment tax preferences, contrasting with direct, explicit taxes paid to the government. This paper explores implicit taxes in Brazilian publicly traded firms within the differentiated Corporate Governance segments of [B]3 from 2011 to 2021. Using a focused methodology that tests two hypotheses, the study demonstrates that firms in these segments bear a higher implicit tax burden and have their explicit tax benefits supplanted by implicit ones. Results specifically reveal that companies in differentiated segments experience lower pre-tax investment returns than others, pointing to weakened tax management levels. This concise analysis underscores the complex relationship between implicit and explicit taxes and corporate governance practices, necessitating further research for comprehensive understanding.