Tax Evasion, Corporate Governance, and ESG Disclosure: A Systematic Literature Review of Emerging Patterns and Research Frontiers (2000–2025)

Abstract

This study presents a systematic literature review (SLR) of 95 peer-reviewed international and national journal articles published between 2020 and 2025, examining the interrelationships among tax morale, agency problems, institutional quality, sustainability pressure, and ESG disclosure in the context of corporate tax evasion and avoidance. Following the PRISMA protocol, this review synthesizes evidence drawn from leading databases including Scopus, ScienceDirect, Emerald Insight, and Taylor & Francis Online, as well as top-ranked Indonesian journals indexed in Sinta 1 and Sinta 2. The findings consistently demonstrate that elevated tax morale, anchored in ethical consciousness and robust social norms, substantially curtails opportunistic tax behavior and strengthens compliance among both individual taxpayers and corporate entities. Nonetheless, agency conflicts remain a structural challenge: information asymmetries between managers and stakeholders frequently precipitate reduced transparency, earnings manipulation, and aggressive tax avoidance strategies—particularly in institutional environments characterized by weak regulatory enforcement. Conversely, high-quality institutional frameworks—marked by sound governance mechanisms, credible regulatory bodies, and effective rule of law significantly mitigate agency costs and enhance the reliability of ESG disclosures. The review also reveals a growing convergence between sustainability mandates and tax governance: as regulators, investors, and civil society intensify pressure for responsible corporate behavior, firms increasingly improve the scope and credibility of their ESG reporting, which in turn constrains tax aggressiveness. This review contributes to the literature by mapping the theoretical evolution of tax research, identifying persistent methodological gaps, and proposing an integrative agenda that aligns tax policy, corporate governance, and sustainable development. Implications for policymakers and practitioners especially in developing economies such as Indonesia are discussed in detail. Keywords: Agency Problem; Corporate Governance; ESG Disclosure; Institutional Quality; Systematic Literature Review; Tax Evasion; Tax Morale.