Abstract:

The aim of this study is to examine the impact of audit quality on tax avoidance strategies of Malaysian family-owned companies. This study uses effective taxes rate (ETR) to measure tax avoidance. Using a sample of 1,457 firm-year observations of Malaysian family-owned public listed companies from 2004 to 2014, this study finds that audit quality has negative insignificant relationship with tax avoidance measure. However, the finding highlight that board size and board independent are more likely to mitigate tax avoidance strategies of such firms.