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Abstract:

This study aims to examine the effect of governance mechanisms on the management of the TR of Cameroonian companies. To achieve this, we conducted a survey based on data from tax litigation and of 68 Accounting and Tax Department Managers. The results from the content analysis reveal two types of TR depending on whether they are committed by beginners and experienced taxpayers operating in the Divisional, Regional and Large Business Division Centers. On the other hand, the factorial and regression analyze highlight six determinants, therefore four, likely to have a significant effect on the management of TR. These results imply that for the company the probability of better managing its TR increases when its employees have proven accounting and tax expertise.

Keywords: Tax risk index, Governance mechanisms, Tax administration, Risk culture, Shareholder and partnership theories.

JEL Rating: M41, M48

(ProQuest: ... denotes formulae omitted.)

1.Introduction:

The evolution of the organizational context of companies characterized by radical changes on the economic, technological, social and regulatory levels brings uncertainties and risks for business leaders. According to Maurer (2006), "In the minds of managers, risk is at the center of decisions relating to the overall management of the company ". Wanting to ensure the sustainability of their organization by creating value, they act in an environment that is increasingly complex and carries risks (Mouna, 2013).

With regard to the Tax Risk (TR) which is the focus of our concern in the context of this study, Boucherguine & Zetout (2018) note that taxation is one of the components of the daily management of a company that is difficult to handle because it is almost permanent and invasive. Its financial challenges in the company appeared quickly and managers are now required to have a good knowledge of the legal and tax environment in which they operate (Tchoudja & al., 2020).

When the application of legal rules to the life of the company can prove to be difficult, given the variety of these rules, their complexity and their permanent evolution in space and time (Gouadain, 2000), several authors (Devereux et al., 2014; Some, 2019; Latulippe et al., 2020; Tchoudja, 2022) emphasize the importance of tax risk management as one of the fundamental elements of good corporate governance.

The strong...

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