Abstract—Corporate tax planning studies have been addressed for a number of years within the developed market context, whereas corporate tax planning research for companies in developing countries is largely non-existent. Studies also associate corporate tax planning with tax avoidance. Tax collection generates large amounts of revenue and is a vital source of income for government to promote overall economic stability and growth. Since Malaysia implemented self-assessment system for companies in 2001, it is important to ensure compliance by taxpayers. Companies engaging with foreign activities are able to utilize in international tax planning. This study is aimed to examine the influence of companies engaging in foreign activity on corporate tax planning. This study tests the relationship by using a cross-sectional-time series valuation using panel data analyses which is Tobit estimations. The findings indicate the link between companies engaging in foreign activity and corporate tax planning in an emerging market.
Index Terms—Corporate tax planning, corporate tax avoidance, foreign activity.
Zaimah Zainol Ariffin is with Universiti Utara Malaysia (e-mail: firstname.lastname@example.org).
Cite:Zaimah Zainol Ariffin, "Tax Planning of a Company Operating Foreign Activity in Malaysia," International Journal of Trade, Economics and Finance vol. 4, no. 4, pp. 209-212, 2013.