The Influence of Corporate Governance Mechanisms on Corporate Tax Planning Practices in the Indian Automobile Industry

Abstract

This study examines the influence of corporate governance mechanisms on corporate tax planning practices in the Indian automobile industry and their implications for firm performance. Using a quantitative research design, primary data were collected from 121 finance professionals, accountants, auditors, tax consultants, and corporate executives through a structured questionnaire. The data were analysed using descriptive statistics, Pearson correlation, multiple regression, and moderation analysis with SPSS. The findings reveal that corporate governance mechanisms, particularly board independence, audit committee effectiveness, ownership structure, and board characteristics, significantly enhance transparent and compliant tax planning practices. The results further indicate that effective tax planning positively contributes to firm performance and value, while tax norms strengthen the relationship between corporate governance and tax planning. The study concludes that robust governance frameworks promote ethical, accountable, and legally compliant taxation while reducing aggressive tax avoidance practices. The findings offer practical implications for corporate managers, investors, regulators, and policymakers seeking to strengthen governance standards and sustainable taxation in India's automobile sector.