This study investigates the information contents of tax avoidance bahviour of going bankrupt firms. Particularly, potential use of book-tax difference as a bankruptcy predictor was investigated. The sample consisted of 71 bankrupt firms and 71 non-bankrupt matched firms as control sample, during 1381-1391. The results of univariate tests indicated that there were significant differences between the mean and median values for tax avoidances of the bankrupt and non-bankrupt firms, since three periods prior to bankruptcy occurrence. These differences reached their maximum values for one year ahead of bankruptcy occurrence. Furthermore, logistic bankruptcy prediction model show that we can use tax avoidance as a bankruptcy predictor and this variable can significantly improve the model performance.