M.A. Thesis:

Profit after tax cash flow and tax avoidance

Tax avoidance is a tax evasion activity without breaking the rules of the low and within the fears work of tax lows. In general, a manager can save his own firm through desirable tax avoidance. In this regard, based on the theoretical foundation, the choice of tax strategy to save tax by the director depends on manager,s evaluation criteria, by the shareholders or the board of directors. Among these, two criteria for cash flows and profit after deduction of tax (net income) can have an important reflection on the choice of tax strategy and tax avoidance. Hence, the purpose of this study was to examine the effect of profit after deduction of tax and operating cash flow profits on tax avoidance which in this regard, 175 companies from Tehran Stock Exchange companies were randomly selected during the period 2011-2017 and were tested by using combined data research hypotheses method that the statistical findings showed that there is a significant direct correlation between the orofit after deduction of tax ratio with coefficient(0.092) and avoidance, Aiso there is a direct and significant relationship between the ratio of operating cash flow with coefficient (0.005) and avoidance. Hence, the results indicated that unlike the theoretical foundations, the mentioned relationships were directly confirmed, which seems that the board of directors encourage managers to avoid further tax avoidance by monitoring the activities of managers to reduce tax payments through tax avoidance. When profits after deduction of taxes and operating cash flows are high because otherwise, you have to pay more taxes. According to the statistical findings, this research directly confirmed the relationship of variables. It seems that the board of deductors encourage managers to avoid futher tax avoidance by monitoring the activities of managers to reduce tax payments through tax avoidance, when profits after deduction of taxes and operating cash flows are high, because otherwise they have to pay more taxes.

Keywords: Profit After Deduction Of Tax, Operating cash flow, Tax Avoidance