Social Responsibility, Machiavellianism and Tax Avoidance: A Study of Hong Kong Tax Professionals

Abstract:     
This study investigates the effects of attitudes toward the perceived importance of corporate ethics and social responsibility and Machiavellianism on professional tax practitioners' willingness to advocate aggressive avoidance schemes on behalf of corporate clients. We hypothesise that practitioners who perceive corporate ethics and social responsibility as more important will judge aggressive avoidance less favourably, and accordingly will estimate a lower likelihood of acquiescence in such schemes. We also hypothesise that practitioners with stronger Machiavellian orientations will be less likely to feel that corporate ethics and social responsibility are important, and more likely to judge aggressive tax avoidance schemes favourably. The findings, based on a survey of tax professionals in Hong Kong, support the hypotheses.

Number of Pages in PDF File: 29

Keywords: Social Responsibility, Machiavellianism, Tax Avoidance, Hong Kong Tax Professionals, corporate ethics, avoidance schemes

working papers series