EFFECTIVE TAX MODEL (ETR): AN APPROACH TO ACCOUNTING, LEGAL, FINANCIAL, AND ADMINISTRATIVE EFFECTIVENESS IN ECUADORIAN ORGANIZATIONS.

Abstract

Over time, most state governments worldwide have incorporated a series of fiscal policies into their administration, with tax exemptions being a strategy that seeks to encourage and promote business development. This research aimed to diagnose the use of tax exemptions by private companies in different sectors and economic activities, as well as to determine the main aspects and factors that contribute to their implementation. The findings were achieved through the application of a quantitative research approach combining a deductive method, variable correlation, and linear regression. The analysis of data from 384 elements led to the conclusion that all fiscal policies are aimed at a common benefit, but for these guidelines to fulfill their purpose, they must be widely understood in their entire context. Therefore, in the case of tax exemptions, companies must have personnel with extensive expertise in legal, tax, and accounting/financial matters so that this fiscal policy reflects favorable numerical results in the financial statements and allows them to be competitive in the market. In addition, a mathematical model is proposed that argues for the usefulness of tax exemptions as an optimal financial strategy.