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1
Bornemann, Tobias. "Tax Avoidance and Accounting Conservatism." WU Vienna University of Economics and Business, Universität Wien, 2018. http://epub.wu.ac.at/6058/1/SSRN%2Did3114054.pdf.
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This study analyzes the relation between accounting conservatism, future tax rate cuts and countries' level of book-tax conformity. Firms have an incentive to increase conservatism in financial reporting when a tax rate cut is imminent to shift taxable income into the lower taxed future. Using a panel of firms across 18 countries from 1995 to 2010 I find that conditional conservatism is positively and significantly associated with future tax rate cuts when book-tax conformity is high. This effect is particularly pronounced for firms that concentrate the majority of their operations in the country in which the tax rate is cut. In contrast, there is no significant relation between future tax rate cuts and unconditional conservatism.Series: WU International Taxation Research Paper Series
2
LI, Yongbo. "Tax-induced earnings management, auditor conservatism, and tax enforcement." Digital Commons @ Lingnan University, 2014. https://commons.ln.edu.hk/acct_etd/17.
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Prompted by the recent statutory corporate income tax-rate reduction in China, in this study I investigate whether the constraining effect that quality auditors have on tax-related discretionary current accruals (DCA) differs for two sub-groups of listed firms with tax incentives to manage earnings upward versus downward. I also explore whether the effectiveness of tax authority scrutiny (i.e. tax enforcement) on DCA differs for the same two groups.
I find that the firms’ two external monitors are sensitive to the direction of managerial incentives for earnings management. Specifically, higher-quality auditors are associated with smaller amounts of reported DCA and this association is stronger for firms with incentives to manage earnings upward and weaker for those with incentives to manage earnings downward, although the accrual decisions for all of the firms are driven by the same tax reporting incentives. The results are consistent with the notion that due to concerns with legal liability and reputation loss, auditors have incentives to ensure that firms report earnings conservatively. I also find a significantly positive association between tax enforcement and reported DCA for firms with incentives to manage earnings downward. This suggests that tax authorities constrain corporate accruals management that is likely to result in tax revenue loss. Taken together, my results suggest that a spillover effect exists between auditors and tax authorities, such that the two monitoring bodies compensate for each other’s lack of monitoring in one direction of accruals management. My results are robust to a set of sensitivity tests and have implications for academic researchers, policy makers, and capital market investors.
3
Beyer, B. (Bianca). "Corporate tax avoidance:does the level of tax aggressiveness depend on economic factors?" Master's thesis, University of Oulu, 2014. http://urn.fi/URN:NBN:fi:oulu-201403131179.
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The purpose of this thesis is to find evidence about national-scale economic instability (especially reflected in the impacts of the financial crisis) being present also on a business level, namely in the form of corporate tax avoidance. A broad strand of literature copes with the topic of corporate tax avoidance. The research stems mostly from companies located in the United States. This thesis combines the approaches taken from US prior research with several cross-country comparisons in Europe in order to examine the influence of economic factors that are specific for each country on the level of corporate tax aggressiveness. The distinction between northern and southern European countries is of special importance in the empirical research of this thesis. This kind of cross-country comparison relating corporate tax avoidance with country-specific economic factors has not yet taken place.
The two strands of literature are examined thoroughly and separately from each other, before they are logically combined in the model development: With a linear regression adopted partially from tax avoidance literature and partially from cross-country comparisons studies, the impact of economic factors like rule of law, the financial system, GDP growth rate, control for corruption and the location of the company regarding the cardinal direction on a tax avoidance proxy measuring tax avoidance aggressiveness is tested and explained. The data are distinguished according to prior and post financial crisis.
The data are financial statement data taken from the World Bank Database, governance indicators taken from the World Bank Worldwide Governance Indicators research project, and further economic influence indicators taken from Eurostat statistics and KPMG. Company observations from eight countries, namely Finland, Sweden, Germany and the Netherlands representing the northern European countries, and Spain, Greece, Italy and Portugal representing the southern European countries, are taken from the years 2005 through 2012. 2005 as the starting point is due to the mandatory IFRS adoption for listed firms in that year. The sample size used in the analyses totals 20,017 company observations from public firms.
The main contribution to literature is that this is the first cross-country comparison across European countries relating to corporate tax avoidance. The evidence is weak but shows that companies in northern European countries tend to be more tax aggressive than in southern European countries, that companies in a market-based country tend to be more tax aggressive than in a bank-based country and that companies changed their behavior after the financial crisis, namely to less tax aggressiveness. The assumption that with an increasing rule of law in a country the companies are more tax aggressive is rejected, which might however be due to interdependencies between variables that the model does not account for. All in all it seems like a stable economy is positively correlated with tax avoidance aggressiveness, at least in post-financial crisis observations.
4
Lopez, Robert A. "Tax-effect accounting in Australia : the nature and treatment of the provision for deferred income tax." Thesis, Edith Cowan University, Research Online, Perth, Western Australia, 1994. https://ro.ecu.edu.au/theses/1091.
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Tax-effect accounting has been controversy since its origin in allocation has generally been adopted the subject in the 1940s. Tax across the English speaking world, even though underlying basic issues have not been resolved. A review of the literature shows that issues such as: whether income tax is an expense; whether the provision for deferred income tax is a liability and whether the provision for future income tax benefit is an asset have not been resolved because of differing opinions as to what is an expense, liability or an asset. The development of a conceptual framework in Australia, which provides definitions of revenues, expenses, assets and liabilities, has provided an opportunity to reexamine some of the unresolved issues mentioned above. Since the conceptual framework, in SAC 4, defines an expense in terms of whether it increases a liability or reduces an asset the re-examination was directed at ascertaining whether the provision for deferred income tax satisfies the definition and recognition criteria for a liability. The results were inconclusive. However, it was possible to conclude that the provision for deferred income tax does not readily satisfy the criteria in SAC 4. An empirical investigation was then undertaken to ascertain whether selected user groups treat the provision for deferred income tax as a liability. The investigation surveyed investment houses, company secretaries, auditors and the parties to trust deeds. Evidence gathered suggest that investment houses and company secretaries treat the provision for deferred income tax all a liability. Auditors appear to regard the provision for income tax as a deferred credit; not a liability. No evidence was found that the parties to trust deeds treat the provision for deferred income tax In a systematic way. It is concluded that the parties to trust deeds do not consider the nature of the provision for deferred income tax when negotiating borrowing limitation ratio. It is hoped that the finding of this investigation will be highly relevant to any review of the standards on tax-effect accounting in Australia.
5
ZHANG, Feng. "An empirical analysis of book-tax reporting difference and tax noncompliance behavior in China." Digital Commons @ Lingnan University, 2005. https://commons.ln.edu.hk/acct_etd/13.
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The traditional accounting system in China was directly linked to the tax assessment. The close linkage between the two sets of reporting rules has substantially weakened, as China promulgated a series of accounting standards and regulations in the late 1990s. As a result, accounting for financial reporting purposes does not have to conform to accounting for tax reporting purposes. This divergence between the two measures of income will inevitably cause accounting book income to differ from taxable income. This is because the more the excess of book income over taxable income, the more the magnitude of tax audit adjustments. Mills (1998) suggests that book tax difference is an indicator of a firm’s tax noncompliance. This implies that additional tax-related costs may arise when accounting book income is higher than taxable income, and these costs may have an impact on the tradeoff between tax incentives and financial reporting incentives.
Based on data from the Chinese stock market, this study tests empirically whether book tax differences due to the tradeoff between tax and non-tax cost results in tax audit adjustments. I hypothesize that the magnitude of tax noncompliance increases as book tax differences increase, and this relationship is stronger after the departure of financial reporting from tax rules in China. The results provide evidence in support of the hypothesis. This study extends prior research and contributes to the understanding of tax and non-tax tradeoffs in a different context. The results have rich implications for corporate managers and policymakers in other developing countries experiencing a similar transition from a tax-based accounting system to a system that gives corporate managers considerable discretion over the choice of accounting methods. One implication is that although book tax delinking may improve the usefulness of financial reports, it could weaken the perceived equity of the tax system and increase corporate tax avoidance behavior. Therefore, when setting accounting standards, policy makers should not only look at the impact of information relevance on the capital market, but also consider the consequence of these standards on government revenue.
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Sünwoldt, Matthias [Verfasser]. "Essays on behavioral tax research and tax accounting / Matthias Sünwoldt (geb. Braune)." Berlin : Freie Universität Berlin, 2016. http://d-nb.info/111088446X/34.
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Lee, Michelle. "Carried Interest: Beyond Mitt Romney's Tax Returns." Scholarship @ Claremont, 2012. http://scholarship.claremont.edu/cmc_theses/535.
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This paper discusses the rise of carried interest in investment partnerships and its controversial tax treatment; it looks into the history of private equity as well as recent literature in determining whether its current treatment is justified, and moreover, suggests further considerations with regards to the matter.
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Hamilton, John Russell. "New Evidence on Investors' Valuation of Deferred Tax Liabilities." Thesis, The University of Arizona, 2018. http://pqdtopen.proquest.com/#viewpdf?dispub=10748935.
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Although deferred tax liabilities represent a significant liability for most firms, prior research provides mixed evidence concerning investors' valuation of these items. Using an expanded data set of hand-collected tax footnotes, I examine (1) whether investors recognize depreciation-related deferred tax liabilities as economic burdens, and if so, (2) how investors measure the effect of these liabilities. I find evidence suggesting that investors price depreciation-related deferred tax liabilities as economic burdens and show that my primary findings are robust to the use of a changes-based methodology. I also examine various factors that could affect investors' measurement of these liabilities. In doing so, I develop a new method to identify tax-sensitive firms to implement my tests. This method incorporates forward-looking profit expectations without a look-ahead bias. Finally, I provide evidence of circumstances where investors discount deferred tax liabilities despite current accounting standards prohibiting managers from discounting these deferred tax liabilities in the reported financial statements. As depreciation-related deferred tax liabilities are among the largest and most common deferred tax liabilities, my study provides important insights into investors' valuation of firms' tax planning.
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Addeh, Rahma. "Book-tax differences and the persistence of accounting earnings." Thesis, University of Southampton, 2016. https://eprints.soton.ac.uk/402059/.
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This study aims to examine the relationship between Book-Tax Differences and earnings quality i.e. earnings persistence in order to assess the usefulness of accounting earnings for decision making. Managers may have incentives to increase accounting or “book” earnings while simultaneously reducing taxable income, any difference in the two measures is termed the book-tax difference (BTD). As the measurement of accounting earnings and taxable income is based on two different sets of rules differences can arise because of permissible discretion in the measurement of accounting income representing genuine economic differences. However, differences could also represent earnings management or manipulation, e.g. an increase in accounting income without a corresponding increase in real assets. Consequently this has raised calls to conform accounting earnings and taxable income in an attempt to limit the misuse of the discretion and the deviation permitted between the two measures. Nevertheless, conformity is argued to cause a loss of accounting earnings informativeness which makes them less useful for decision making. Using an earnings persistence model this study aims to address: (1) Does the contribution of the BTD in the model differ from that of underlying earnings and if so, does the nature of the contribution depend on a short term or longer-term measure of the BTDs. (2) Further, when BTDs are disaggregated into their “temporary” and “permanent” sources does the nature of the contribution change. If BTDs behave differently from underlying earnings, this will support the retention of differing measures of accounting earnings and taxable income and more directly retaining discretion in measurement of accounting earnings.
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Brown, Darryl Lee. "The Persistence and Value Relevance of Earnings From Tax Savings." Diss., The University of Arizona, 2006. http://hdl.handle.net/10150/195331.
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This dissertation examines the persistence and value relevance of earnings attributable to tax savings and the extent to which this persistence and value relevance differs from those of nontax earnings. After controlling for factors previously shown to be systematically associated with the tax component of earnings, results show that tax savings are significant and statistically persistent but statistically less persistent than earnings from nontax sources. Results also reveal that the persistence of tax savings changes across tax regimes whereas earnings from nontax sources remain relatively unchanged. Contextual analysis shows that (1) the persistence of tax savings is largely driven by firms in the pharmaceutical, oil and gas, financial services, insurance and real estate industries, (2) the persistence of tax savings is increasing in the R&D tax credit and (3) this persistence is increasing in settings where the ratio of foreign over domestic earnings is increasing. Additionally, the persistence and value relevance of tax savings is increasing for positive tax savings, implying a market reward (penalty) for lower (higher) tax savings (reported effective tax rates). When I compare the results from my valuation tests with those from my persistence tests, I find that tax savings are sometimes not persistent but value relevant and sometimes persistent but not value relevant whereas the persistence and value relevance of nontax earnings are always consistent. These findings are consistent with managerial opportunistic behavior, a market that suspects managerial opportunistic behavior or a stock market that does not understand fully the persistence of tax savings relative to nontax savings. Results from the Mishkin (1983) test show that the market appears to significantly overestimate both the persistence of tax savings and nontax earnings, implying that securities are mispriced. This potential mispricing appears to be more severe for tax savings, implying that, on average, the market does not appear to understand fully the persistence and value relevance of the tax component of earnings. Finally, this study reconciles some of the mixed results of prior research and carries significant implications for policy makers, firm management, market participants and accounting researchers.
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LUO, Kim Wan Rebecca. "Two essays on the mitigating factors of corporate tax noncompliance." Digital Commons @ Lingnan University, 2015. https://commons.ln.edu.hk/acct_etd/21.
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Corporate tax noncompliance is a serious problem in many developed and developing countries. My PhD thesis is composed of two essays to investigate various factors that mitigate corporate tax noncompliance by listed Chinese firms.
The first essay examines whether a firm’s corporate tax noncompliance can be constrained by auditor quality. Past studies have shown that high-quality auditors are effective in reducing earnings management, which mainly involves overstatements of earnings. In this essay, I find that high-quality auditors are associated with better overall tax compliance by their client firms. In particular, high-quality auditors are effective in constraining book-tax-conforming noncompliance, which mainly involves understatements of both book and taxable income.
The second essay examines the tax noncompliance behavior of firms since the adoption of International Financial Reporting Standards (IFRS) in China, taking into account the influences of lower tax rates and more stringent tax enforcement. In recent years, many countries have moved away from tax-based accounting and toward adopting IFRS which increase tax noncompliance. At the same time, there has been a general reduction of corporate income tax rates as a means to increase tax competitiveness. Lower tax rates should be associated with decreases in tax noncompliance. Similarly, firms should be more tax compliant under a more stringent tax enforcement regime. In this essay, I find that the negative effect of book-tax delinking on tax noncompliance is significantly attenuated for firms that are subject to lower tax rates or more stringent tax enforcement measures. This essay also provides evidence that the effects of tax rates and of tax enforcement measures are more pronounced in the lower book-tax conformity period.
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Pedwell, Kathryn. "Influence of accounting on tax court decisions, an empirical analysis." Thesis, National Library of Canada = Bibliothèque nationale du Canada, 2000. http://www.collectionscanada.ca/obj/s4/f2/dsk1/tape2/PQDD_0026/NQ49529.pdf.
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Sakakibara, Masayuki. "The relationship of accounting, tax and corporate financing in Japan." Thesis, University of Reading, 2001. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.367347.
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McCarthy, Maureen H. "Accounting for corporate tax losses: a survey of corporate practice." Thesis, Queensland University of Technology, 1993. https://eprints.qut.edu.au/227026/1/T%28BS%29%2063_McCarthy_1993.pdf.
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The objective of the study is to empirically examine the recognition or nonrecognition
of the asset, Future Income Tax Benefit (FITS), fn companies where
carryforward tax losses exist.
The study sought evidence as to whether the recognition/non-recognition of FITS
may be explained through the economic consequences of accounting policy
choice. As the recognition of FITS, is reliant on the application of the AASB 1020
asset recognition criterion of "virtual certainty", an examination of the numerical
equivalents (ie. percentages), corporate group accountants associate with the asset
recognition criteria was also undertaken. The recognition/non-recognition of FITS
was examined subject to the allocation of numerical equivalents to the asset
recognition criteria. Finally, the study made a comparison of the numerical
equivalents corporate group accountants allocated to asset recognition criteria of
"beyond any reasonable doubt" and "virtual certainty".
Partial support was found for the hypotheses reliant on economic consequences
theories to explain the · choice of accounting procedure. The existence of
management compensation plans (with payment linked to reported earnings) and a
higher average total long-term liabilities to shareholder's equity ratio for companies
were identified in companies which recognised FITS, where corporate tax losses
existed. However, a lower ratio for the statutory restriction on dividends, and larger
average total assets balance were also identified for firms which recognised FITS.
For companies which recognised FITS, the numerical equivalents corporate group
accountants allocated to the asset recognition criteria of "beyond any reasonable
doubt" and "virtual certainty" were not as high as the percentages allocated by
corporate group accountants of companies which did not recognise FITS, where
corporate tax losses existed.
The comparison of the numerical equivalents for each asset recognition criteria,
identified that a higher numerical equivalent was allocated to the criterion of "virtual
certainty" compared to "beyond any reasonable doubt". This is consistent with the
findings of prior studies by Patel (1991) and Houghton and Walawaski (1992).
15
Lewis, Judy D. (Judy Dianne). "Examination of the Effects of Experience and Missing Information on Tax Preparer Judgment." Thesis, University of North Texas, 1996. https://digital.library.unt.edu/ark:/67531/metadc279220/.
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This research examines how experience and missing information affect judgments of tax return preparers. Tax return preparers may often be faced with the problem of incomplete information, and their responses to this problem may be conditioned by whether or not they recognize information is missing. Based on the Holland et al.'s cognitive theory of induction as applied to tax judgment by Marchant et al., it was hypothesized that experienced tax preparers would correctly classify more items as to their relevance to a specific tax issue than novice tax preparers. Additionally, it was hypothesized that the strength of recommendations of tax preparers who had no relevant information missing would be greater than the strength of recommendations of tax preparers who had relevant information missing and were prompted that information was missing. Lastly, it was hypothesized that prompting that relevant information was missing would have a greater effect on the strength of recommendations of tax return preparers with lesser specific experience than it would on the strength of recommendations of tax return preparers with greater specific experience. The results suggest that experienced tax preparers do recognize the relevance of information to a greater degree than novice tax preparers. There was no significant difference, however, in the strengths of recommendation of tax preparers who had no missing information and those who were prompted that information was missing. There was a significant difference in the strengths of recommendations of tax preparers with lesser specific experience who had been prompted that relevant information was missing and those who had not been prompted that relevant information was missing. Among tax preparers with greater specific experience, however, there was no significant difference between the two groups. These results suggest that tax preparers with greater specific experience recognized that relevant information was missing without being prompted, while tax return preparers with lesser specific experience did not.
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Shovtenko, О. V. "The Depreciation of Fixed Assets in the Context of Legislative Changes." Thesis, Київський національний університет технологій та дизайну, 2017. https://er.knutd.edu.ua/handle/123456789/7764.
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Finley, Andrew Rhodes. "The Impact of Large Tax Settlements on Firms' Subsequent Tax and Financial Reporting." Diss., The University of Arizona, 2015. http://hdl.handle.net/10150/555888.
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In this study, I examine how firms change their tax avoidance and financial reporting following large tax settlements. I find that firms decrease tax avoidance following large settlements and this effect is concentrated among firms under-reserved for the settlement for financial accounting purposes. Additionally, my results suggest firms learn from tax examination resolutions in a way that affects their financial reporting over the tax account. Finally, I find that the effect of large settlements also spills over to firms within the same auditor network. This study provides context to the tax authority's efficacy in deterring tax avoidance and highlights its role in the financial reporting process.
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De, Jager Phillip. "Fair value accounting in South African banks : financial stability implications." Doctoral thesis, University of Cape Town, 2015. http://hdl.handle.net/11427/15568.
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This article-based thesis consists of three main papers that examine the use of fair value accounting in banks and how it can influence behaviour with systemic effects; this helps in understanding the role of fair value accounting in the global financial crisis. The examination consisted of two parts. The first part was the investigation of how fair value accounting was actually used by South African banks. The second part was the development of an analytical model that links together fair value accounting, bank capital regulation and economic outcomes. The South African case study was further divided into two parts. In the first part, a comparative design was used to investigate in detail how fair value accounting was implemented by two South African banks and what their motivations were. The second part sought to answer the question: did South African banks pay out higher dividends based on risky fair value accounting gains? The South African evidence indicates that fair value accounting materially impacts the profit and loss and the regulatory capital of banks. This component of regulatory capital proved to be risky. Dangerous pay-outs resulted from the increase in profits and bank assets grew the most during the period of risky capital formation. It was found that the use of a stock-flow consistent model of the economy was a commonality amongst those that predicted the global financial crisis. A stock-flow consistent model was shown to be descriptive of the South African evidence. The model showed fair value accounting to be at the centre of feedback processes that can weaken the banking system during the economic upswing. The study concludes that fair value accounting is central in processes that weaken the banking system during an economic upswing and thus demonstrates why the current call for prudent accounting in banks is justified. The study expands on current literature in a number of ways. It adds to the literature that fair value accounting is procyclical by demonstrating that this effect is not constant throughout the cycle and is more problematic during the upswing; this differs from the usual argument that fair value accounting accelerates the downturn. The South African empirical evidence showed that fair value accounting for available-for-sale assets is not the only avenue for fair value accounting to be dangerous; fair value accounting adjustments through profit and loss should also be monitored. The analytical model as well as the South African empirical evidence contradicts the common argument that the fair value measurement of financial instruments must be pervasive in a bank and banking system to be dangerous. The South African empirical evidence shows that fair value accounting must be considered a possible avenue of earnings or capital management in banks.
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ZHOU, Ying. "Ownership structure, board characteristics, and tax aggressiveness." Digital Commons @ Lingnan University, 2011. https://commons.ln.edu.hk/acct_etd/3.
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Tax aggressiveness, as commonly proxied by the effective tax rate (ETR), measures a firm’s effort spent on minimizing its tax payments. It is suggested that more tax aggressive firms have greater incentives to allocate resources to minimize taxes and thus have lower ETRs. Corporate governance has been continuously receiving attention in literature across different fields and can affect a firm’s tax strategy through its control mechanism. This thesis investigates how corporate governance influences a firm’s tax aggressiveness. The main hypothesis of this thesis is whether firms with good corporate governance will have less incentives and opportunities to manage tax aggressively. Specifically, I take advantages of the distinct institutional settings in China to study whether the Chinese firm’s tax aggressiveness is affected by ownership structure and the characteristics of board of directors. Using all non-financial listed companies in the Chinese A-share market during 2003 and 2009 period, I find that firms with state-controlled nature and lower proportion of controlling shares pursue less aggressive tax strategies and maintain higher ETRs. In addition, my finding is consistent with prior literature that a higher percentage of the boards’ shareholdings and dual service duties performed by the board chairman result in lower ETRs. However, I do not find a significant relationship between the percentage of independent directors and tax aggressiveness which may suggest the ineffective role of independent directors in China.
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Mauler, Landon. "The Role of Additional Non-EPS Forecasts: Evidence Using Pre-Tax Forecasts." Diss., The University of Arizona, 2013. http://hdl.handle.net/10150/283609.
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In this study, I examine whether and how analysts' pre-tax earnings forecasts are informative to investors. Specifically, I first examine the determinants of pre-tax forecast coverage and whether pre-tax forecasts are incrementally informative to investors in evaluating firm performance. Next, I examine whether pre-tax forecasts decrease the transparency of tax-related earnings management. Lastly, I examine how pre-tax earnings forecasts influence management's incentives to avoid taxes. Using I/B/E/S data from 2002-2011, I find pre-tax forecast coverage is associated with firm-level tax characteristics. In addition, I find investors utilize pre-tax earnings forecasts in evaluating firm performance, after controlling for after-tax earnings forecasts. In addition, the results of this study indicate investors more significantly discount earnings which have been managed through the tax account when pre-tax earnings forecasts are available, consistent with increased transparency resulting from detailed forecasting. Lastly, I find some evidence that increases in pre-tax forecast coverage are associated with a decrease in tax avoidance. This result is consistent with a change in management's incentives resulting from the existence of additional performance benchmarks. Collectively, this study provides evidence that pre-tax earnings forecasts are informative in multiple settings. These findings have important implications for academics and practitioners in understanding the role of additional non-EPS income statement forecasts.
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Downs, Brian. "The U.S. Corporate Tax System: Shortcomings and Alternatives." Scholarship @ Claremont, 2013. http://scholarship.claremont.edu/cmc_theses/788.
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The purpose of this paper is to propose an alternative to the current U.S. corporate tax system. This paper analyzes the qualities of a “good” tax, theories of international neutrality, the two major international tax systems, and how the U.S. hybrid system falls short of these criteria. The current U.S. tax system is inefficient and overly complex. This paper will show that the U.S. tax system has major shortcomings, and will explore the popular proposals for reform. After demonstrating the strengths and weaknesses of the proposals, this paper concludes that a territorial income tax system with certain protections for income shifting is ideal for U.S. corporations.
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Přidal, Martin. "Enhancing the Better Corporate Governance Practice: From Accounting Scandals to Tax Risk Management." Master's thesis, Vysoká škola ekonomická v Praze, 2010. http://www.nusl.cz/ntk/nusl-75024.
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Recent accounting scandals and current global financial crisis have brought new demands on the whole corporate world. The call for better corporate governance is strengthening in all business areas including tax. Tax non -- compliance brings substantial risks for both tax payers and tax revenue authorities. The way how companies manage their tax risks can significantly influence their overall financial performance and reputation. The paper deals with issues of tax non -- compliance as a lack of good corporate governance practice. The main goal of the paper is to put tax into the concept of corporate governance. Moreover, the paper deals with the concept of tax risk management as a way of how tax compliance in general could be enhanced and introduces the current international practice in this field.
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Killen, Karen L. "Ratio of Income Tax Expense to Operating Income as an Indicator of Fraud." Thesis, Northcentral University, 2016. http://pqdtopen.proquest.com/#viewpdf?dispub=10105357.
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Financial statement fraud is so prevalent that the American Institute of Certified Public Accountants (AICPA) and the Securities and Exchange Commission (SEC) both issued guidelines dealing with revenue recognition specifically because the majority of financial statement fraud involves overstating revenue. The specific problem addressed by this study was that although there are analytical procedures used throughout the audit process, only 10% - 12% of detected frauds are found using this method. Research has shown that companies with large differences between reported net income and taxable income showed among other things, fraudulently overstated earnings compared to companies with average differences. The study examined how income tax expense related to operating income, which included all revenue less expenses but before income taxes payable; and, whether the ratio of income tax expense to operating income differs for public companies with and without detected financial statement fraud. The full census sample included examination of fraud firms and non-fraud firms for all cases occurring between the years 1993 and 2005. The data was analyzed using descriptive statistics including measurements of central tendency and variability and inferential statistics including z-scores and Pearson’s correlation coefficient. The results indicated that there is a relationship between non-fraud income tax expense and income before income taxes r = .996, N = 332, (p < .01), two tails, and for fraud firms, there is a correlation between income tax expense and income before income taxes r = .963, N = 386, (p < .01), two tails. This research also indicates that a correlation exists for non-fraud firms between income tax expense and operating income, r = .702, N = 196, (p < .01), two tails and for fraud firms r = .842, N = 386, (p < .01), two tails. Finally, the results also indicate there may be a significant correlation between the ratio of income tax to operating income for fraud firms compared to the ratio of income tax expense to operating income for nonfraud firms where r = .169, N = 196, (p < .05), two tails. Converting the fraud ratio to a z-score demonstrates that any ratio greater than .46 gives a greater than 50% chance of indicating fraud (Field, 2009).
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Naon, Joshua. "Why Corporations Avoid Taxes Through Inversions: How To Fix the United States Tax System." Scholarship @ Claremont, 2015. http://scholarship.claremont.edu/cmc_theses/989.
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The current United States tax code regarding inversions and collection of foreign taxable income is outdated in a heavily globalized world market. Multinational corporations have played games to circumvent the current inversion tax code, Section 7874, in order to lower their effective tax bill. The avoidance of taxes stems from the high corporate tax rate combined with the United States’ worldwide taxation policy, which few countries in the developed world implement. The fear for United States politicians and citizens alike is that the current trend of tax inversions will increase to the point of an exodus of corporations to tax havens. This paper will begin by analyzing inversions, from both a corporate view and a government view. It will delve into why inversions have become so prevalent today. This paper will offer a proposal to prevent unfair inversion practices by U.S. corporations and make suggestions to remove the root of the problem: a high corporate tax rate. Ultimately, this paper will conclude that an adaption of the current inversion prevention provision combined with lower taxes will not only benefit the U.S. corporations, it will maintain the current government tax revenue received from corporations, and increase cash flow into the United States.
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Mahangila, Deogratius Ng'winula. "SMEs' corporate income tax compliance in Tanzania." Thesis, University of Southampton, 2014. https://eprints.soton.ac.uk/370451/.
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Many governments are struggling with inadequate tax revenue and increasing tax gaps. Consequently, changing behaviour of non-compliant taxpayers as small and medium enterprises (SMEs) because of their tax revenue potential and non-compliance behaviour is essential. This thesis examined the impact of corporate income tax penalty incidence, retributive justice, procedural justice, the interaction between retributive and procedural justice on corporate income tax compliance behaviour. Also, the thesis analysed whether corporate income tax compliance costs affect SMEs tax compliance behaviour. Laboratory experimental methods found corporate income tax penalties levied on individual tax managers might be more effective than corporate income tax penalties charged on corporates. Also high tax compliance costs may decrease tax compliance levels. Likewise, a survey method discovered perceptions of retributive and procedural justice might associate with tax compliance behaviour. However, a perception of procedural justice can moderate the relationship between retributive justice and tax compliance. Conclusively, tax authorities may increase SMEs’ corporate income tax compliance by imposing corporate income tax penalties on tax managers, but these penalties should be perceived to fit the crime of corporate tax non-compliance and imposed through fair procedures. Also, the authorities may increase SMEs’ corporate tax compliance by decreasing tax compliance costs. Shortly, the thesis contributes to the limited tax literature on corporate income tax compliance, procedural and retributive justice and usage of real taxpayers in an experiment.
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Felber, Michael. "Kritische Punkte in der Offenlegung nach IAS 12, insbesondere in den Bereichen "effective tax rate and tax reconciliation", "amount of unused tax assets", "reason for recognition of certain tax assets" und "tax effects resulting from discontinued operations", dargestellt an ausgewählten Beispielen von SMI kotierten Schweizer Gesellschaften." St. Gallen, 2007. http://www.biblio.unisg.ch/org/biblio/edoc.nsf/wwwDisplayIdentifier/01656412002/$FILE/01656412002.pdf.
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Hjelström, Anja. "Understanding international accounting standard setting : a case study of the process of revising IAS 12 (1996), income tax /." Stockholm : Economic Research Institute, Stockholm School of Economics (EFI), 2005. http://web.hhs.se/efi/summary/667.htm.
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Johnsson, Richard. "Transport Tax Policy Simulations and Satellite Accounting within a CGE Framework." Doctoral thesis, Uppsala : Univ., Department of Economics, 2003. http://www.loc.gov/catdir/toc/fy043/2003504674.html.
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Williams, Brian. "Financial Accounting Standards, Audit Profession Development, and Firm-Level Tax Evasion." Thesis, University of Oregon, 2016. http://hdl.handle.net/1794/19699.
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In this study I investigate the relation between (1) country-level financial accounting standards and audit profession development and (2) firm-level tax evasion. I investigate this relation using a confidential dataset compiled by the World Bank that provides an estimate of the percent of a firm’s sales reported to the tax authority as well as information on local corruption and economic development. This database includes firms both with and without externally audited financial statements. After controlling for corruption, economic development, rule of law, and other firm, local, and country-level variables I find that firms in countries with more rigorous financial accounting standards and a more developed audit profession evade less tax and that this effect is stronger when firms have externally audited financial statements and thus are more directly influenced by the financial accounting standards and level of audit profession development in their country. These results have important implications for tax authorities and for other policy makers debating whether to dedicate scarce resources to improving their countries’ financial reporting environment.
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Savoy, Steven. "Discretion in accounting for tax reserves: evidence from mergers and acquisitions." Diss., University of Iowa, 2017. https://ir.uiowa.edu/etd/5840.
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I examine the extent to which acquirers exercise discretion in the application of FIN 48 when estimating target tax reserves. By examining the change in target tax reserves recorded through purchase accounting, I am able to hold constant the underlying tax positions, and any changes can be attributed to differences in how the managers of the target and acquirer apply the recognition and measurement principles of FIN 48. For a sample of large public-for-public M&A transactions in which the amount of target tax reserves is observable pre- and post-acquisition, approximately one third (half) of the acquirers adjust target tax reserves by more than half (a quarter) of the preexisting balance. Substantially more acquirers increase rather than decrease target tax reserves, and the average change in target tax reserves recorded through purchase accounting is $25 million. I also find evidence that the change in tax reserves recorded through purchase accounting is increasing in short-term financial reporting pressures and decreasing in the costs of overstating goodwill.
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Shev, Joanne. "A study of some of the combined tax effects of capital gains tax and estate duty and a comparison with similar legislation in the United States of America and the United Kingdom." Master's thesis, University of Cape Town, 2003. http://hdl.handle.net/11427/6904.
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Includes bibliographical references.This paper presents a study of some of the combined effects of capital gains tax and estate duty. In addition, the current estate tax and inheritance tax situations in the United States of America and United Kingdom, respectively, are discussed in this paper for comparative purposes. The tax regimes in the United States of America and the United Kingdom are relevant to this investigation due to their ability to avoid imposing both capital gains tax and estate tax upon the same assets on the death of an individual. The generation-skipping transfer tax in the United States of America and the United Kingdom inheritance tax generation-skipping provisions are also examined as they may assist to close some of the loopholes in the existing South African estate duty legislation. By closing these loopholes, the need to subject the estate assets to both capital gains tax and estate duty on the death of a person may be negated.
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Lignier, Philip Andre Cyberspace Law & Policy Centre Faculty of Law UNSW. "Identification and evaluation of the managerial benefits derived by small businesses as a result of complying with the Australian tax system." Publisher:University of New South Wales. Cyberspace Law & Policy Centre, 2008. http://handle.unsw.edu.au/1959.4/41018.
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This thesis explores the managerial benefits derived by small business entities as a result of complying with their tax obligations. This is the first study on managerial benefits that considers all federal taxes in the Australian context. While the managerial benefits of tax compliance were first identified by Sandford in the 1980s, there is only limited evidence to date about their perception by business taxpayers and no evidence at all about their actual occurrence. The work undertaken by Sandford together with the findings of empirical research on accounting in small businesses, provide the framework for the development of research hypotheses. With the purpose of testing these hypotheses, the research examines concurrently a sample of small businesses located in a regional area of Australia, and a sample of similar entities located in an external territory of Australia exempt from federal taxes and with minimal tax compliance obligations. The thesis adopts a mixed research method which combines a survey and a case study component from which a number of convergent results emerge. Results show that bookkeeping requirements imposed by tax compliance compel small businesses to upgrade their accounting systems, typically in the form of computerisation. The increased sophistication of the accounting system following this upgrade allows small businesses to derive managerial benefits in the form of a better knowledge of their financial affairs. The study also demonstrates that when small businesses seek the assistance of an accountant to comply with their tax compliance obligations, managerial benefits may be derived in the form of informal business advice and other services that come as a spin-off from tax compliance work. The findings of the research also indicate that a majority of small businesses value positively the accounting information generated as a result of tax imposed record keeping requirements, however further studies are required to establish the extent to which the additional information has a positive effect on decision making. Finally, the study identifies various possible approaches to quantify managerial benefits including a method based on the costs of alternative resources, and a valuation based on what owner-managers would be prepared to pay for the information.
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Artemov, A. (Andrey). "The use of deferred tax components in detecting earnings management:evidence from Finnish public firms." Master's thesis, University of Oulu, 2018. http://urn.fi/URN:NBN:fi:oulu-201806062515.
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The purpose of the thesis is to explore the usefulness of information from deferred tax disclosures in detecting earnings management. A deferred tax disclosure is seen as a dashboard that informs users of accounts influenced the most by managerial judgement.
This study contributes to the literature in the several ways. Firstly, unlike the vast majority of previous research, it provides empirical evidence outside of the USA. Finland was chosen as a country with a high quality of the institutional environment and comparably low levels of earnings management among public firms. My empirical analysis covers a decade (2007–2016), which is almost the entire period since the adoption of IFRS by the country in 2005. Data on the composition of deferred taxes used in the analysis were not available via any of the databases and thus were hand-collected from firms’ annual reports. To mitigate potential bias resulting from mergers, acquisitions, divestitures, or discontinued operations, only the changes in deferred taxes that flow through the income statement are considered. Besides, the new classification of deferred tax components is developed and applied.
I formulate hypotheses in relation to earnings management around two earnings targets: reaching positive earnings (avoidance of a loss) and exceeding the prior year’s earnings (avoidance of an earnings decline). Each of the two sets of hypotheses consists of three sub-hypotheses that focus on the usefulness of total net deferred tax liability, deferred tax component related to provisions and reserves, and deferred tax component related to “other” temporary differences. I doubt the usefulness of total net deferred tax liability in detecting earnings management because of its heterogeneous composition. The study extends previous research on the use of deferred tax component related to provisions and reserves in detecting earnings management. Deferred tax disclosures are not fully transparent in terms of sources of temporary differences, and a considerable part of deferred taxes is hidden behind the label of “other”. The testing of this category of deferred taxes is conducted for the first time.
The obtained results show that only change in deferred tax component related to provisions and reserves provides important information on earnings management to avoid an earnings decline. Thus, a significant change in this component of deferred taxes can be used as a complementary indicator of possible earnings management for users of financial information. Although, given the relatively small number of observations, the significance of the obtained results is rather moderate. Another limitation of such types of studies is an assumption that tax accounts are free from manipulation, so changes in deferred taxes properly highlight managerial discretion over book accounts.
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DiLucci, Jasmine. "Tax Return Preparer Liability: A New Approach to Accountability." Scholarship @ Claremont, 2014. http://scholarship.claremont.edu/cmc_theses/880.
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The purpose of this paper is to propose a new theory of civil liability to hold tax return preparers liable to their clients for tax malpractice, applying to understatements, overstatements, and non-optimal tax advice. This paper discusses the tax return preparer’s (TRPs, both signatory and nonsignatory) current liability to the government and to the client, specifically addressing Circular 230, AICPA rules, state boards of accountancy, federal regulations, and malpractice for professionals. It will then go through several case studies to establish current gaps in malpractice law for TRPs, showing how the government is usually favored in court while clients are not. Ultimately, I will explain a general theory of liability to apply nationally for TRPs to increase their accountability to their clients.
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Cuin, Henri Mathieu. "Development of tax analysis software." Thesis, McGill University, 2000. http://digitool.Library.McGill.CA:80/R/?func=dbin-jump-full&object_id=33325.
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The never-ending changes in the mineral industry environment require fast reactions on the part of governments in adapting their mining tax policies. The fiscal analysis software developed for this Master of Engineering and commissioned by the Quebec Ministry of Natural Resources provides the provincial authorities with a quick method of assessing the tax burden of a mining project located in Quebec. It also allows comparison of Quebec's tax burden with that of other Canadian mining provinces as well as the analysis of fiscal changes on a mine's profitability. The use of the software is illustrated by analyzing the effect of inflation and price cycles on the tax burden of a hypothetical mining project located in Quebec. The behavior of specific tax provisions with respect to these factors is emphasized.The report starts with a general review of mineral resource taxation and fiscal instruments available to governments. This is followed by the documentation of mineral taxation in Quebec, Ontario and British Columbia, three important Canadian mining provinces. The general design and programming of tax analysis software is then described and discussed. The thesis concludes with an analysis of two major economic factors that impact on the tax burden of a mining project, inflation and commodity price cycles.
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Terwin, Murray. "Natural resource protection through double tax agreements in the East African community: a critical analysis of whether Kenya, Tanzania and Uganda have sufficiently protected the taxing rights over natural resources within their Double Tax Treaty Network." Master's thesis, University of Cape Town, 2011. http://hdl.handle.net/11427/12640.
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Includes bibliographical references (leaves 52-54).Kenya, Tanzania and Uganda are countries that are in rich natural resources. The two resources which these states are the most economically reliant upon are that of arable land and minerals. It is these two resources which hold the most potential for these three states in terms of further economic growth. This makes it important for these two valuable resources to be afforded the best possible protection through the Double Tax Agreements (DTAs) that the three states have negotiated. This dissertation determined whether sufficient protection exists within the DTA networks of Kenya, Tanzania and Uganda by analysing two important Articles that have a major impact on the ability of the “source State” to tax the exploitation of natural resources.
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Al-Rashed, Wael E. R. "Kuwait's tax reformation, its alternatives and impact on a developing accounting profession." Thesis, University of Hull, 1989. http://hydra.hull.ac.uk/resources/hull:3573.
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Since the discovery of oil, Kuwait has witnessed a vast economic transition which has boosted a significant welfare state. However, in recent years the situation has changed, influencing the state budget and financial resources. The search for sources of income other than oil gave rise to the possibility of imposing taxes in a hitherto tax-free country. The 1955 tax law was applied only to foreign enterprises operating in Kuwait, and since then few attempts have been undertaken to reform it. The purpose of this study is to examine the tax alternatives available to Kuwait, which could increase state revenues, and reduce the level of inequality among the population resulting from the government land purchasing programme adopted in the early sixties. It also aims, through an empirical investigation, to reveal the potential impact of tax reformation on the development of the emerging accounting profession in Kuwait. The determination of the most appropriate tax policy for Kuwait necessitates the examination of the views of those parties most concerned, who are defined in this study as the public, foreign investors, and accounting practitioners. Accordingly, questionnaires were designed, tested, distributed and analysed to reveal attitudes towards tax reformation. In addition, interviews with concerned persons in the country, including tax legislators, officials, and authors, were conducted, so as to further examine these attitudes and other aspects of tax introduction. Based on the findings of this investigation as well as the traditional literature survey, appropriate reforms are suggested, including reformation in the legislative, administrative, and technical considerations of the tax introduction. Moreover, recommendations concerning the development of the accounting profession to accommodate the new tax era are also made, including better organisation of the profession, and its contribution to taxation in Kuwait.
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Huston, George Ryan. "The impacts of recent tax legislation on dividend policy and investment." [College Station, Tex. : Texas A&M University, 2007. http://hdl.handle.net/1969.1/ETD-TAMU-1217.
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Kroukamp, Susan. "Possible tax treatments of the transfer of accounting provisions during he sale of a business and subsequent tax considerations /." Thesis, Stellenbosch : University of Stellenbosch, 2006. http://hdl.handle.net/10019.1/3336.
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Thesis (MAcc (Accountancy))--University of Stellenbosch, 2006.The potential buyer of a business evaluates the attractiveness of the transaction by considering the financial status of the business being sold. In determining the financial status of a business it is more important to determine the nature of the assets and liabilities recorded on the balance sheet rather than the mere existence thereof. Included in the liabilities are accounting provisions recorded in terms of the Generally Accepted Accounting Practice (GAAP) to reflect a fair representation of the financial status. Although these provisions are made for accounting purposes, they cannot necessarily be deducted under the terms of the Income Tax Act, no 58 of 1962. The tax deductibility of accounting provisions has long been a potential contention when a business is sold. The Income Tax Act has specific sections that must be applied in determining the deductibility of accounting provisions, for example, section 11(a), which is the general deduction formula; section 23(g), which prohibits expenses not laid out for the purposes of trade; and section 23(e), which does not allow a deduction when a reserve fund is created (for example a leave pay provision). In conducting this study, seven types of accounting provision generally recorded by businesses were identified: the bonus provision, leave pay provision, warranty provision, settlement discount and incentive-rebate provision, post employment provision, retrenchment cost provision and other provisions. These provisions are discussed in view of their possible income tax deductibility, and relevant case studies were identified to confirm the possible deductibility of these accounting provisions. In this study, the transfer of accounting provisions during the sale of a business is considered for the purposes of both the buyer and seller. The tax implications for the buyer and seller are then evaluated, as well as the subsequent treatment of the accounting provisions for the purposes of the buyer. Because the wording of the purchase contract is extremely important when a business is acquired, three examples of the wording of a purchase contract are discussed as well as the income tax implications thereof. The extent of the advice given by a tax practitioner will depend on the allegiance of the practitioner (either for the buyer or seller) and will determine how the contract will be concluded. In conclusion a tax practitioner would want to assist his client to obtain the most effective tax position for the transaction and therefore each purchase contract must be reviewed on its own set of facts.
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Masters, Colin David. "The avoidance of tax on income, profits and gains." Thesis, University of Southampton, 1990. https://eprints.soton.ac.uk/349251/.
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This thesis deals with the various ways taxpayers have employed to avoid paying tax on income, profits and gains and the responses of the judges and legislators. Each type of avoidance is followed from its first appearance to the present day, where appropriate. The respective manoeuvres of the taxpayers, on the one hand, and the Legislature, on the other, are chartered, as is the attitude of the courts. There are four sections. In the first, the various categories of tax avoidance arrangements that have been implemented over the years in the United Kingdom are examined. The second is concerned with international tax avoidance as seen from a United Kingdom perspective. Thirdly, the approach in the United Kingdom is compared with that of other countries, with particular reference to the United States of America, Canada and Australia. The last section analyses the role of the judges and examines the extent to which they have been prepared to look through the form of a transaction to consider the underlying substance. The role of the judges as makers of tax law is also considered. The way in which the subject was researched was to examine each category of tax avoidance in a chronological order, beginning with the first moves by the taxpayer, and charting the ensuing battle of wits between the taxpayer and the Legislature from the standpoint of those who have had to adjudicate on the process: the Judges.
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Luo, Bing. "Effects of Auditor-provided Tax Services on Book-tax Differences and Investors’ Mispricing of Book-tax Differences." Thesis, University of North Texas, 2015. https://digital.library.unt.edu/ark:/67531/metadc801928/.
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In this study, I investigate the effect of auditor-provided tax services (ATS) on firms’ levels of book-tax differences and investors’ mispricing of book-tax differences. The joint provision of audit and tax services has been a controversial issue among regulators and academic researchers. Evidence on whether ATS improve or impair the overall accounting quality is inconclusive as a result of the specific testing circumstances involved in different studies. Book-tax differences capture managers’ earnings management and/or tax avoidance intended to maximize reported financial income and to minimize tax expense. Therefore, my first research question investigates whether ATS improve or impair audit quality by examining the relation between ATS and firms’ levels of book-tax differences. My results show that ATS are negatively related to book-tax differences, suggesting that ATS improve the overall audit quality and reduce aggressive financial and/or tax reporting. My second research question examines whether the improved earnings quality for firms acquiring ATS leads to reduced mispricing of book-tax differences among investors. Recent studies document that despite the rich information about firms’ future earnings contained in book-tax differences, investors process such information inefficiently, leading to systematic pricing errors among firms with large book-tax differences. My empirical evidence indicates that ATS mitigate such mispricing, with pricing errors being lower among firms acquiring ATS compared with firms without ATS. Collectively, these results support the notion that ATS improve audit quality through knowledge spillover. Moreover, the improved earnings quality among firms acquiring ATS in turn helps reduce investors’ mispricing of book-tax differences.
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Rodriguez, Katherine J. "Reforming the International Corporate Tax Code: A Transition to a Territorial Tax System." Scholarship @ Claremont, 2014. http://scholarship.claremont.edu/cmc_theses/955.
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This paper discusses why the United States is need of international corporate tax reform. It argues that instead of the worldwide tax system it currently uses, the United States needs to transition to a territorial tax system.
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Porter, Susan L. "The effects of alternative state tax regimes on firms'accounting and financial decisions /." Thesis, Connect to this title online; UW restricted, 1994. http://hdl.handle.net/1773/8803.
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Ganon, Michele Wendy 1957. "Self-control theory as an explanation of tax evasion." Diss., The University of Arizona, 1996. http://hdl.handle.net/10150/290599.
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This dissertation introduces to the tax evasion literature self-control theory (Gottfredson and Hirschi 1990), a general theory of crime which explains criminal preferences using socio-psychological constructs, and regards specific criminal acts as manifestations of self-interested behavior. Self-control theory postulates that individuals with the least self-control will have the greatest preference for criminal behavior. By measuring those personality traits which indicate self-control, it may be possible to identify an enduring propensity towards law-abiding or criminal behavior. When combined with knowledge of an individual's decision-making ability and current opportunity, self-control theory is a general theory of crime. Self-control theory was used to develop research questions concerning the causes of tax evasion. A survey instrument was designed to address these questions, which was administered to two groups of taxpayers. The results suggest that measures of self-control are useful in explaining evasion, and that tax evaders are most easily identified by their propensity to engage in other criminal or imprudent activities. Opportunity is useful for explaining the type of evasion committed, but not for discriminating between evaders and compliers. Since self-control theory appears applicable to the evasion problem, it provides accounting researchers with an enhanced understanding of the causes of evasion. For criminology, empirical support for self-control theory in the area of tax evasion demonstrates robustness, supporting its claim to being a general theory of crime.
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Ortmann, Regina, and Erich Pummerer. "Formula Apportionment or Separate Accounting? Tax-Induced Distortions of Multinationals' Location Investment Decisions." WU Vienna University of Economics and Business, Universität Wien, 2015. http://epub.wu.ac.at/4703/1/SSRN%2Did2688090.pdf.
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We examine which tax allocation system leads to more severe distortions with respect to locational
investment decisions. We consider separate accounting (SA) and formula apportionment (FA). The
effects of both systems have been hotly debated in Europe in the past years. The reason is that the EU
Member States are striving to implement a common European tax system that would lead to a switch
from SA to FA. While existing studies focus primarily on the impact of taxes on locational decisions
under either SA or FA, the main innovation of this paper is that it compares both systems with regard
to the level of distortions they induce. We compare the optimal pre-tax investment decision with the
optimal after-tax investment decision and infer from the difference in the allocation of investment
funds which tax allocation system causes more severe distortions. We assume that the multinational
group (MNG) has comprehensive book income shifting opportunities under SA. We find that the
investment incentives under SA are opposed to those under FA for a profitable investment project.
Whereas under SA as much as possible should be invested in a high-tax country, under FA as much as
possible should be invested in a low-tax country. The distortions of locational investment decisions
tend to be more severe under SA than under FA if a greater share of investment funds is to be invested
in a low-tax country from a pre-tax perspective and the investment is profitable. Vice versa, locational
decisions may be more distorted under FA if the optimal pre-tax investment decision requires
investing a major share of funds in the high-tax country. In contrast to the often stated insensitivity of
FA towards income shifting, we find the introduction of a tax allocation system based on FA in
Europe could lead to a severe shift of economic substance to low-tax countries. The results of this
paper are of particular interest for European policy makers and MNGs as our findings may induce
European MNGs to reassess their recent locational investment decisions in the face of a potential
future change in the applied tax allocation system. (authors' abstract)Series: WU International Taxation Research Paper Series
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Zeng, Tao. "Tax planning using derivative instruments and firm market valuation under clean surplus accounting." Thesis, National Library of Canada = Bibliothèque nationale du Canada, 2001. http://www.collectionscanada.ca/obj/s4/f2/dsk3/ftp04/NQ56110.pdf.
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Othman, Rani Diana. "The impact of forensic accounting, investigation and audit on tax compliance in Malaysia." Thesis, Edith Cowan University, Research Online, Perth, Western Australia, 2011. https://ro.ecu.edu.au/theses/453.
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Evidence of success in improving taxpayers‟ compliance behaviour reflects the effectiveness of the enforcement activities of the tax system. The implementation of a Selfassessment System (SAS), together with improvements in tax enforcement functions, are among the recent tax reforms undertaken in Malaysia as part of this effort. Three levels of compliance, namely filing, reporting and payment have been established as performance indicators for international tax administrator (IRS, 2003). Therefore, by applying three compliance models: Return Per Capita (RCAP), Reported Tax Per Return (RTR) and Payment Per Return (PLR), adapted from Plumley (1996) and Dubin (2007), this study‟s objective is to highlight the Malaysian tax authority‟s (IRBM‟s) performance towards enhancing these compliance levels during the pre, post and overall periods of change in the Malaysian tax climate. In doing so, this study focuses on the element of deterrence provided by tax enforcement activities in order to further understand how the enforcement functions provide different levels of deterrence to individual taxpayers. This study also addresses reporting compliance, as one aspect of the quality of compliance, consistent with one of the objectives of the new assessment system: inducing a sense of responsibility and honesty among individual taxpayers. Using the IRBM‟s unexplored data on individual taxpayers for the period 2002 - 2007, this study pioneers an econometric approach towards Malaysian individual tax compliance studies. In doing so it supports the theoretical findings of parallel survey and experimental studies on Malaysian tax compliance. The „compliance principle‟ is found to be applicable to the Malaysian tax climate, where the costs of compliance, especially filing costs, play an important role in the taxpayers‟ compliance decisions. As for tax enforcement effects, the increased probability of audit detection is found to result in significantly higher reporting compliance, while the civil detection rate is more effective in providing the element of certainty of punishment. The introduction of severity of punishment is found to support the hypothesis on the effectiveness of more severe punishment, specifically Section 114(1) (s114) towards deterring the serious and intentional tax evasion. The empirical findings of this study are expected to lead to more opportunities for exploring Malaysian individual taxpayers‟ compliance behaviour.
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Cunha, Fábio Lima da. "O imposto de renda e a juridicização da contabilidade: o conceito de renda no direito tributário e suas relações com a ciência contábil." Universidade de São Paulo, 2013. http://www.teses.usp.br/teses/disponiveis/2/2133/tde-13102016-164805/.
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O imposto de renda, em seus mais variados aspectos e particularidades, tem se mostrado um dos temas mais complexos e debatidos pela doutrina especializada e pelos tribunais ao redor do mundo. No Brasil, jurisdição em que o Sistema Tributário Nacional encontra-se ampla e rigidamente arquitetado pela Constituição Federal, o tema ganha especiais contornos, dada a necessidade de fiel compatibilidade entre a legislação infraconstitucional e os limites minuciosamente desenhados pelo constituinte. A presente pesquisa pretende entrar nessa seara para abordar o intrigante binômio aspecto material e base de cálculo do imposto de renda das pessoas jurídicas. No que tange ao aspecto material, investigaremos o grau de influência da rigidez do Sistema Constitucional Tributário sobre a composição dos elementos que caracterizam a renda constitucionalmente tributável. Nesse mister, será necessário discorrer sobre as teorias que propugnam pela ampla liberdade do legislador infraconstitucional para estabelecer o significado de renda (teoria legalista) até aquelas que apontam pouca (ou nenhuma) autorização para construção do conceito de renda no âmbito infraconstitucional, eis que isso seria matéria eminentemente constitucional. E assim se fará para que, posteriormente, viabilize-se o cotejamento entre a renda constitucionalmente tributável e o lucro contábil apurado de acordo com a legislação societária, eis que, tradicionalmente, é esse o ponto de partida para a apuração da base de cálculo do imposto de renda das pessoas jurídicas. Para tanto, será preciso analisar as funções e os usuários da contabilidade, identificando a atual perspectiva e os critérios que guiam a elaboração dos relatórios contábeis. Feito isso, tratar-se á de responder a seguinte indagação: poderia o legislador tributário brasileiro adotar o modelo de dependência total, isto é, adotar o lucro contábilsocietário como base de cálculo do imposto de renda das pessoas jurídicas sem nenhuma correção ou limitação no seu processo de determinação, como acontece em alguns países? Em última análise, analisar-se-á criticamente se o lucro contábil, juridicizado que foi pelo Direito Societário e Tributário, confirmaria ou infirmaria o aspecto material do indigitado tributo a teor do Texto Magno.The income tax, in its various aspects and particularities, can be considered as one of the most complex and discussed issues by specialized doctrine and courts around the world. In Brazil, a jurisdiction that the National Tax System is comprehensive and almost tightly provided by the Federal Constitution, the issue gains special contours, specially about the compatibility between ordinary legislation and the limits provided by the constituent. This study intends to going through in this matter in order to discuss the intriguing binomial taxable event (material aspect of taxable event) and taxable basis of corporate income tax. Regarding to the taxable event, this study will investigate the influence of the Constitutional Tax System on the composition of the elements that characterize the constitutionally taxable income. At this point, it will be necessary discuss the theories that advocate the wide freedom of ordinary legislature to establish the significance of income (legalistic theory) and those theories that advocate little (if any) authorization to construct the concept of income by ordinary legislature under the argument that this matter would be eminently constitutional. And it will be done in order to make possible the comparison between constitutionally taxable income and accounting income determined in accordance with Brazilian corporate legislation, behold, traditionally, it is the starting point for calculating the taxable basis for corporate income tax purposes. For that, we will need to analyze the functions and users of accounting, identifying the current perspective and criteria that guide the preparation of financial reports. After this, we will be able to answer the following question: could the Brazilian legislature adopt the tax total dependency model, i.e., the corporate accounting as the taxable basis for corporate income tax without any correction or limitation on your determination process, as happens in some jurisdictions? In essence, this study intends to perform critical analysis of if the accounting profit, which was provided for Corporate and Tax Law purposes, confirm (or not) the taxable event provided by Federal Constitution.
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Hjelström, Anja. "Understanding international accounting standard setting : a case study of the process of revising IAS 12 (1996), income tax." Doctoral thesis, Handelshögskolan i Stockholm, Redovisning och Finansiering (B), 2005. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-525.
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Considerable energy and resources continue to be expended on accounting rule-making, particularly through standard setting. This has been the case both at the national and international (global) level for a long time. Despite this, there is continuing dissatisfaction with what has been achieved. Criticism continues to be expressed over the rule-makers, their processes of setting rules as well as the rules being produced. Based on a detailed longitudinal case study of one process of setting an international accounting standard this study suggests a comprehensive model for understanding the (international) accounting standard setting process. In addition to the previously emphasised role of politics, it also recognises the potential significance of learning and executive concerns, as well as significant interactions between these three sub-processes of accounting standard setting. In doing this the suggested model provides a framework for approaching concerns regarding the prospects of, and problems involved in, accounting standard setting as a means of achieving (more) standardised accounting practices. A significant part of this book provides a detailed account explaining why the IASC published a standard on income tax requiring the balance sheet liability method in 1996. This case is especially interesting, not only because income tax constitutes a considerable expense for most companies, but also because the revised standard implied a change in financial accounting practices in most countries. The appendix contains several numerical examples illustrating the difference between alternative methods of accounting for income taxDiss. Stockholm : Handelshögskolan, 2005
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Moodley, Dennis. "Analysis & reform a review of section HK11 of the Income Tax Act 2004 and its effectiveness : a dissertation submitted to Auckland University of Technology in partial fulfilment of the requirements for the degree of Master of Business (MBus), 2008." Abstract Full dissertation, 2008.
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