An International Meeting of the American Accounting Association American Accounting Association 2006 Annual Meeting August 6–9, 2006 Washington, D.C.

William E. Shafer
Lingnan University Hong Kong

Richard S. Simmons
Lingnan University Hong Kong

Abstract: This study investigates the effects of attitudes toward the perceived importance of corporate ethics and social responsibility and Machiavellianism on professional tax practitioners’ willingness to advocate aggressive avoidance schemes on behalf of corporate clients. We hypothesize that practitioners who perceive corporate ethics and social responsibility as more important will judge aggressive avoidance less favorably, and accordingly will estimate a lower likelihood of acquiescence in such schemes. We also hypothesize that practitioners with stronger Machiavellian orientations will be less likely to feel that corporate ethics and social responsibility are important, and more likely to judge aggressive tax avoidance schemes favorably. The findings, based on a survey of tax professionals in Hong Kong, support the hypotheses.

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