MONETARY POLICY, AUDIT QUALITY AND TAX AVOIDANCE: A CASE OF PAKISTAN

Although tax avoidance and evasion concerns have long been recognised, compliance in emerging nations has received improved attention with the global financial crises. This study examines impacts of monetary policy audit quality on 295 public limited firms listed Pakistan Stock Exchange (PSX) between 2011 2020. Results panel regression analyses show that interest rates affect accounting Effective Tax Ratios (ETR) differently over time. In contrast, is not substantial cash ETR, but external fee negatively affects indicators. These results provide an imperative consideration for practitioners policymakers better to judge their influence behaviour incentives progressive taxation sustainable development.