Verification Of Tax Avoidance By Audit Quality And Dimensions Of Ownership Structure In Jordanian Manufacturing Companies

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Mosab Tayseer AL-Rashdan


The ownership structure is the main variable that affects the results of the company, which expresses the identities of the shareholders and the size of their holdings. Tax evasion also contributes to reducing the amount of tax or preventing its collection and supply to the department by legal means through some fraudulent methods and policies. However, this paper aims to invistegate the effect of ownership structure dimensions in Jordanian manufacturing companies on tax avoidance with moderating effect of audit quality. In addition, descriptive approach was used in this study, Benford variables were adopted tocollecte the data from annual reports of 12 years were coverd between 2010-2021. All companies donot available the data according to Benford's Law are excluded. Nevertheless, the findings indicate that all the component of property structure positively effect tax avoidance in manufacturing companies. Likewise, audit quality moderiate the effect of property structure and tax avoidance in Jordanian manufacturing companies. However, this finding of this study emphasized the importance of ownership structure and audit quality towards tax avoidance. In addition, there are several important practical implications for the Jordanian Income and Sales Tax Department, which is to determine the structure of corporate ownership in tax avoidance, which contributes to the lack of state revenues. by corporations to determine tax avoidance; Therefore, it is advised for the Income and Sales Tax Department to investigate high quality audit offices and approve their reports to confirm the credibility of the submitted reports.

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