Do Selected Tax Advantages Affect Tax Revenue from the Personal Income Tax?

Krajňák, Michal

doi:10.7441/joc.2019.04.05

Cited by 8 publications

(6 citation statements)

References 47 publications

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“…As defined by Healy (1985), earning management is reasonable and legal management decision-making and reporting intended to achieve stable and predictable financial results. Earnings management helps to achieve specific targets involving the manipulation of accruals through discretionary choices (Krajnak, 2019). Thus, the emphasis is given to accrual earnings management, which does not influence the underlying corporate economics but involves the change in the accounting presentation of these economics (El Diri, 2018).…”

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confidence: 99%

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

Klieštik

Nica

Suler

et al. 2020

MMI

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Earning management is a collection of managerial decision that results in not reporting the true short-term, value-maximizing earnings as known to management. It is focused on the changes in financial reporting to mislead the stakeholders and achieve contractual benefits. Earnings management emphasizes the manipulation of accounting choices and operating cash flows, and it is known as a practice which chooses an accounting treatment that is either opportunistic (maximizing the utility of management only) or economically efficient. The paper deals with the possibilities of detection and quantification of trend, degree and scope of the earnings management of Slovak and Czech companies from 2015 to 2017. The paper aimed to create a systematic overview of the earnings management specificities considering the enterprises’ innovation policy as the phenomenon of earnings management understood ambiguously, contradictory and without consensus. The paper is to explain various opinions of earnings management understanding and to propose methodical instrumentation for the detection and quantification of earnings management. The validity of the focus in question is multiplied by the possibility of smooth implementation in the transition countries, countries that even after almost thirty years of transformation, still show a significant degree of difference from countries with a developed market economy. In total, 29 earnings management detection models were subjected to forensic analysis. 2,155 Slovak and 4,842 Czech enterprises represented the statistical sample after the removal of extreme values. The most effective model to reveal manipulation with earnings is the Kothari model. Using the Friedman non-parametric test, trend, degree and scope of earnings management were tested. The results of the analysis showed interesting results – countries tend to manipulate earnings upwards. Detection of earnings management practices in enterprises is of vital importance provided that the real and correct data have to be presented to stakeholders and third parties to prevent any forms of financial and credit risks. Keywords earnings management, earnings management detection models, discretionary accruals.

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confidence: 99%

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

Klieštik

Nica

Suler

et al. 2020

MMI

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“…Considering the reduced purchasing power of low-income households and maintaining the current consumption of cigarettes, the state policy in cigarette taxation worsens the standard of living, especially for smokers in low-income households. Such effects impair the intention of various tax instruments such as tax advantages aimed at supporting low-income households, which are described by Krajňák (2019). Accordingly, our results imply much higher significance of other tools of the tax policy such as anti-advertising, spreading information within focused groups, supportive measures to quit smoking, legislation aimed at avoiding from second-hand smoking and other preventive measures to combat the tobacco epidemic than rising prices of cigarettes due to a gradual increase in tobacco taxes.…”

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confidence: 99%

The Real Effect of the Czech Tax Policy for Combating the Tobacco Epidemic

David¹,

Litzman²,

Rozmahel³

2022

ekoncas

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Similar to other developed countries, the Czech Republic implements socioeconomic policies aimed at minimizing smoking. The objective of this research is to provide evidence of the real impact of increasing cigarette taxes on cigarette consumption and its structure in the Czech Republic. The unique database consisting of manufacturers' subscribed cigarette stamps and all posted brand prices were collected by the authors over the past two decades and was utilized in the analysis. The analysis shows that a continuous rise in cigarette market prices does not motivate consumers to prefer low price brands or to reduce cigarette consumption. The research provides evidence that smokers did not minimize smoking but even spent more money on cigarettes, preferring more expensive brands or staying loyal to a favored one. This implies necessary changes in the market basket of the smokers' households.

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“…The basic requirement for the use of accounting statements for business management, control, reporting and other purposes is that they accurately and truthfully present the financial reality (Krajnak 2019). Information obtained from accounting is still one of the main sources of information about a company for most interest groups.…”

Section: Discussionmentioning

confidence: 99%

Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

Blazek

Ďurana

Valášková

2020

JRFM

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The economic results of a company are an important tool for many entities, e.g., for internal entities as well as for external entities. As the economic results of a company are often the only source of information that informs the company’s partners about the managerial activities of their company, it is necessary to present these economic results using real numbers. However, companies prefer to achieve better results by applying the principles of creative accounting, which leads to improved economic values being shown to be achieved during an accounting period. The purpose of this article is to apply models that have been developed to detect creative accounting, which occurs under conditions that help enterprises to adjust their financial statements and tax bases and involves using creative accounting techniques to become competitive or to be able to take advantage of deductions. These models were applied to the Slovak Republic’s agriculture, forestry, and fishing sector (sector A), which is highly affected by earnings manipulation. This article provides a numerical expression of companies, which were previously, with some probability level, involved in conducting financial statement manipulation. Subsequently, the results that were obtained have been displayed using receiver operating characteristic (ROC) curves. The outputs of the analysis show that a large proportion of the companies in this sector tend to use creative accounting, which is not only harmful for entrepreneurs and their business partners in sector A, but also for the Slovak Republic at large, as the Slovak government cannot determine whether the reported accounting results reflect a company’s real financial situation.

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Do Selected Tax Advantages Affect Tax Revenue from the Personal Income Tax?

Cited by 8 publications

References 47 publications

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

Innovations in the Company’s Earning Management: The Case for the Czech Republic and Slovakia

The Real Effect of the Czech Tax Policy for Combating the Tobacco Epidemic

Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

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