This study aims to develop a conceptual model demonstrating the predictors and measures for tax management behavior. The study also proposes the mediating role of management accounting systems in the model. A deductive approach was utilized to propose that board effectiveness, managerial competencies, and management accounting systems are predictors of tax management and strategic responses are construct measures for tax management. The underlying mechanisms in which these variables might lead to tax management of both direct and indirect taxes are elaborated using Neo-institutional theory as the major theoretical underpinning. This study indicates that board effectiveness, managerial competencies, and management accounting systems can predict tax management. In addition, based on the Neo-institutional theory, tax management behavior is a response to institutional expectations (demands from tax authorities). This paper provides valuable implications for corporate taxpayers to effectively manage their tax affairs to avoid fines, penalties, prosecution, and other costs whilst ensuring sound compliance with laws and regulations. This paper is the first study that explains tax management as a response to tax enforcement pressures. The paper explains tax management with latent variables planning, organizing, controlling, and communication proxies of management which will be measured using the strategic responses suggested by Oliver (1991). However, this study has some limitations. One limitation of this study is the lack of empirical tests of the proposed model. Another limitation is that only internal organizational dynamics -board effectiveness, managerial competencies, and management accounting systems are proposed factors to explain tax management. Other variables related to organizational interests and value commitments could be explored. Also, external factors like the enforcement measures from the tax authorities are likely to affect tax management in organizations.

Keywords: Tax management, Board effectiveness, Managerial competencies, Management accounting system