Abstract:
Ecommerce and tax avoidance are studied previously in the cross border ecommerce transactions context (bosch & ravinda:garcia, 2020) and found positive influence on the tax avoidance in the analysis. On the country level in Europe, labor tax avoidance was studied in another study that focused on the ecommerce increase and the labor tax avoidance and it was established that there is influence of the ecommerce transactions on the tax avoidance, theory . ~ 1 at was used is the general theory of tax avoidance. This work is in the dimension of tax avoidance and related factors that are influenced by somehow, we selected the secondary data of the 121 firms and obtained ecommerce data and performed the regression analysis on those basis, it is seen that simply ecommerce was not the factor to make the results significant but rather as a control variables were required to see the influence on tax avoidance. TAX avoidance in previous studies was measured on the basis of the Effective tax ratio and now the percentage increase was measured for the purpose of the research studies. GOP of the country is increased by the tax contribution and this research dimension is to find ways to fill the gap and aware the corporations to avoid tax will make their business less grows ultimately. The results of fixed effect model reveal that highest positive coefficient was for the ETR (0.2398) is significant at 1% level, as hypothesized. This is a reasonably significant value of R, since tax avoidance is a very complicated concept and is affect by a multitude of factors not covered in the model. The value of R square was found to be 0.405643. It means that our model explains 40.56% of variation in Tax Avoidance (the dependent variable).
