The Reality of Negative Tax Management Practices in the Institution

Abstract

Through this study, we aim to Detecting the reality of fraudulent behaviors of the tax manager through negative practices in the Algerian business environment, and the purpose of its practice. In order to achieve the objectives of this study, an applied study was conducted on BIOPHARM and SAIDAL companies listed on the Algerian Stock Exchange and active in the pharmaceutical industry from 2015 to 2021, Relying on financial reports using the effective tax rates and tax book differences in the measurement process. After analysing the results and testing the hypothesis, the study revealed the existence of negative behaviours practiced by the tax manager in both BIOPHARM during the years 2018, 2019, 2020 and SAIDAL during the years 2017, 2018, 2019. Through the results of the tax differences index and the effective tax rate, and as an example of this tax evasion with the motive of reducing the tax base for self-gains or for the benefit of shareholders in order to maximize the value of the company, the study recommended reducing the tax burden on taxpayers and controlling the fiscal costs of each activity