Quality costs and Corporate Taxation. Literature review.

The literature on Total Quality Management (TQM) has never questioned whether there is any relationship between quality and taxation. This paper demonstrates that quality and taxation are two interdependent social realities that can and should be used together in the explanation of phenomena of an economic nature, and that there is a connection and interdependence between quality and taxation at the economic and business level. The relationship between quality and taxation at the corporate level occurs as a result of firms feeling the need to carry out more efficient management of resources. This efficient resource management requires that firms should have more precise and accurate information about all their costs including those associated with meeting their tax obligations (compliance costs). Quality is not alien to these issues: TQM and quality costs are strategies that can be applied to all activities undertaken by firms including their own tax practice. The PAF model, by allowing the reduction of compliance costs, is considered a useful and essential tool for business taxation.