The Moral Hazard of Tax Avoidance: A Narrative Review Approach

This article explores the phenomenon of moral hazard and its role in corporate tax avoidance practices. Tax avoidance is a deliberate action taken by companies to reduce their tax obligations, both legally and illegally. Due to the unclear boundaries between legal and illegal actions, the legality of corporate tax practices is ultimately determined by the authorities, which define what is permitted and what is prohibited. The purpose of this article is to examine how differences in interests bet