Contingency Management and Tax Planning: A Case Study of an Engineering Company in Cajamarca, Peru

Abstract

A success factor in business management is the result of an adequate tax management, as well as the risks involved in the day-to-day running of companies. In view of this situation, the objective of this study is to establish the relationship between "Tax Planning" and "Risk Management" within organizations. The design used in this research is quantitative under a descriptive, correlational, basic and transversal scope. The survey technique was used, applying a questionnaire to 40 collaborators of a company in Cajamarca-Peru. It is concluded that: (1) Tax planning and contingency management denote a significant relationship, where the value of the correlation coefficient presented a positive sign, indicating a direct relationship, whose strength of association is low positive (2) The results show that 62.5% of the managers of the mining sector surveyed perceive that tax planning is applied in an excellent way. While, 87.5% of the mining sector managers surveyed consider that Contingency Management is excellently implemented. (3) There is a significant relationship (p<0.05) between some of the dimensions of the tax planning variable and Contingency Management, thus establishing that tax planning is part of Contingency Management, helping companies to anticipate and cope with potential tax risks, while promoting financial stability and preparation for future uncertainties.