Exploring Legal Tax Planning Alternatives to Mitigate Tax Evasion Risks in Business Practices

Shelda Multi Rizkinia; Sri  Delasmi Jayanti

doi:10.69725/raida.v1i2.58

Authors

Shelda Multi Rizkinia a. Student of Accounting Study Program, Faculty of Economics, Open University
Sri Delasmi Jayanti b. Sharia Banking, Raden Fatah State Islamic University, Palembang, Indonesia

DOI:

https://doi.org/10.69725/raida.v1i2.58

Keywords:

Legal Tax Planning, Business Practices, Tax Compliance, Tax Strategies, Tax Evasion

Abstract

Objective: This study is conducted to discuss how businesses can utilize alternative tax planning to replace the risk of tax evasion.
Methods: Using a qualitative methodology--including an extensive literature review and case studies of companies implementing legal tax planning strategies -- the research finds that tax optimization is a rational business decision that conforms to the public interest. We'll build through academic articles, government regulations, real-world business, etc. To do this, we will make a comparative analysis of the different tax planning methods to find the most effective practices in preventing the risk of tax evasion.
Results: Through this study, we expect to determine some key legal tax planning strategies including tax deductions, credits, and deferrals adopted by the business aimed at minimizing the tax liabilities while complying with the law. Additionally, it will underline the importance of tax advisors and finances in aiding corporations through the intricacies of tax law, which serves to bolster tax evasion unintentionally.
Novelty: Offers tangible recommendations for businesses wishing to achieve tax efficiency through a lens of ethics by paying closer attention to the multifaceted nature of the existing interplay between law and business ethics, a fresh perspective provided by this research. The difference with prior literature which focuses on strategy of tax avoidance will create the foundation highlight lawful ways to reduce tax evasion propensity.
Research Implications: This study has important implications for policymakers, business leaders, and tax professionals. This will give a better insight on the necessity of legal tax planning in facilitating tax compliance while mitigating tax evasion risk. Findings from the research may also impact on the formulation of tax policies that seek to promote transparency and ethical tax conduct in business.

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Author Biographies

Shelda Multi Rizkinia, a. Student of Accounting Study Program, Faculty of Economics, Open University

Shelda Multi Rizkinia
Student of Accounting Study Program, Faculty of Economics, Open University
Sri Delasmi Jayanti, b. Sharia Banking, Raden Fatah State Islamic University, Palembang, Indonesia

Sri Delasmi Jayanti, S.E., M.ACC., AK., CA,

Lecture
Sharia Banking, Raden Fatah State Islamic University, Palembang, Indonesia

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