Financial reporting on income tax in Serbia and Croatia: An empirical analysis

Abstract

The paper examines the quality of financial reporting on income tax in Serbia and Croatia in order to determine the extent to which disclosed information on income tax in these countries is useful for economic decision making. The research based on financial statements of listed and non-listed companies for 2016 reveals that disclosed information on the income tax is not entirely in accordance with the relevant regulation. Therefore, there is a significant room for improvement of income tax financial reporting practices in both countries. The quality of disclosed income tax information is not related to the presence of companies in the stock market, as capital markets in Serbia and Croatia do not provide strong incentives for disclosing adequate information on income tax. The research also reveals significant differences in the prevailing sources of deferred tax assets and deferred tax liabilities between Serbia and Croatia, which indicates that the income tax financial reporting is conditioned by the specifics of the national environment.

Nexus of Corporate Tax Planning In Malaysia's Trading and Services

“…For tax reporting purposes, companies adjust their pre-tax net income based on tax treatment, i.e., double deductions, allowable expenses, non-allowable expenses, taxable income, non-taxable income, and tax-exempt income. Tax incentives result in actual tax payments being much lower than the STR (Vržina et al, 2020). According to Mgammal and Ku Ismail (2015), companies use different approaches to minimise their tax liability; therefore, they use tax planning strategies to reduce their tax burden.…”

Intelligent Assessment Method of Enterprise Tax Risk Based on Deep Learning

“…Mark the information sources according to the types of enterprise tax risk, and distinguish the information sources according to the management information and the core part [25]. At the same time, the efficiency of management and control is calculated for information conversion and several applications, and the calculation index Q i ð0:01, 0:005, 0:015, 0:01, 0:015Þ of enterprise tax risk failure rate is obtained.…”

Segment disclosures in the financial statements of stock companies in the Republic of Serbia and the Republic of Croatia

“…Medved et al (2016). Istraživanjima je otkriveno da kompanije u RS nedovoljno poštuju i merodavne standarde koji se bave drugim područjima obelodanjivanja, i to: obelodanjivanjima o povezanim stranama (Jakšić, 2010), biološkim sredstvima (Mijić, Spahić i Vuković, 2010;Savić i Obradović, 2020), porezom na dobitak (Vučković-Milutinović & Lukić, 2013;Vržina, Obradović & Bogićević, 2020), nekretninama (uključujući investicione), postrojenjima i opremom (Obradović i Karapavlović, 2014;Karapavlović, Obradović & Milutinović, 2018) i nematerijalnim ulaganjima (Obradović, 2018 Informacije geografskim oblastima (prihodi od prodaje i netekuća sredstva) Nije naznačeno Da 2 Informacije o glavnim kupcima (prihodi od prodaje svakom glavnom kupcu i identitet segmenta/grupe segmenata koji su ostvarili prihode, ali ne i identitet kupca)…”

“…Naime, u RH se MSFI (u početku samo MRS), primenjuju od 1993. godine (Mamić-Sačer i Ramač-Posavec, 2012), a u RS od 2003, (finansijske institucije), odnosno, pd 2004, (ostali profitno orijentisani entiteti). Ipak, istraživanja pokazuju da postoji prostor za unapređenje kvaliteta i transparentnosti godišnjih finansijskih izveštaja kotiranih preduzeća i u RH (Pervan, 2006;Pivac & Čular, 2012;Pervan, 2013;Pivac, Vuko & Čular, 2017;Vržina et al, 2020). Na osnovu navedenog, definisana je prva istraživačka hipoteza.…”