The perception on auditors’ involvement in tax evasion arrangements

Abstract: For most, offshore company setups in countries such as Panama or Ireland are tied to thoughts of illegal activities leading to tax evasion. Although in many cases these preconceptions seem to be in order, in general we seem to miss a key point in reasoning of how and why these activities are possible. The conclusions this study provides are based on material derived from qualitative interviews conducted in Sweden and are used to argue against existing research findings which point the auditor as a key player in tax evasion arrangements and a reason of tax evasion existence. In addition, we argue that issues of tax evasion are of complex nature and therefore no individual profession can be pointed to as a scapegoat, instead additional research needs be done in order to map and understand the processes that are involved in setting up a tax evasion arrangement. Furthermore, the material gathered by this research suggests that a better understanding of tax evasion arrangements might form the ground for an international collaboration such as effective common regulation against tax evasion. The interviews which this study is based upon are conducted on auditor stakeholders who have an understanding in taxation issues and who work near auditors and therefore have an adequate understanding of the auditor profession.