The purpose of this study is to investigate tax avoidance and the cost of debt for small and medium-sized enterprises. This study is a library study and analyzes past research. Tax avoidance may increase a firm's cash flows, agency costs, information risk, and tax authorities' scrutiny risk on the one hand, and affect the cost of debt on the other. Past research has mainly examined the consequences of tax avoidance on the cost of debt in large firms, and the results obtained are contradictory. However, empirical evidence on this relationship in private firms, especially small and medium-sized enterprises, is scarce. More importantly, the impact of tax avoidance on the cost of debt of small and medium-sized enterprises can vary greatly depending on the characteristics of large firms, their relationship with creditors, and the tax avoidance practices implemented in these firms.