Normal, Abnormal Book-Tax Differences and Accounting Conservatism

Riguen, Rakia; Jarboui, Anis

doi:10.21315/aamjaf2017.13.1.5

Cited by 7 publications

(5 citation statements)

References 41 publications

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“…This research supports Hanlon's (2005), which showed that the company has to be cautious and use conservatism accounting in making financial report, so that book tax differences will not cause company mistakes in giving necessary financial information. According to research conducted by Koubaa and Jarboui (2017), total component and component difference in book tax differences in this case have differential implication towards conservatism accounting.…”

Section: Resultsmentioning

confidence: 88%

Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences

Purwantini

2017

IJRBS

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The research’s first purpose is to analyze directly conservatism accounting influence towards book tax differences and tax avoidance. The second purpose is to analyse indirect influence towards tax avoidance through book tax differences. The research is conducted to companies enlisted in Indonesian Stock Exchange and belongs to LQ45 during 2013 to 2015. The number of companies sample taken by purposive sampling is 23 corporations, therefore total observation is 69 observations. The acquired data analysed by path analysis. This research conclude that conservatism accounting practice significantly influence book tax difference practice but did not influence tax avoidance. Conservatism accounting practice is also having no influence towards tax avoidance committed by book tax differences. This book tax difference is only significantly influential to commit tax avoidance. This research can contribute in taxation field as input in tax planning formulation.

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Section: Resultsmentioning

confidence: 88%

Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences

Purwantini

2017

IJRBS

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Section: Resultsmentioning

confidence: 99%

Slum Population In India: Extent And Policy Response

Sawhney¹

2016

IJRBS

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The research's first purpose is to analyze directly conservatism accounting influence towards book tax differences and tax avoidance. The second purpose is to analyse indirect influence towards tax avoidance through book tax differences. The research is conducted to companies enlisted in Indonesian Stock Exchange and belongs to LQ45 during 2013 to 2015. The number of companies sample taken by purposive sampling is 23 corporations, therefore total observation is 69 observations. The acquired data analysed by path analysis. This research conclude that conservatism accounting practice significantly influence book tax difference practice but did not influence tax avoidance. Conservatism accounting practice is also having no influence towards tax avoidance committed by book tax differences. This book tax difference is only significantly influential to commit tax avoidance. This research can contribute in taxation field as input in tax planning formulation.Page56 avoidance does not belong in the category of tax laws because the taxpayer's attempt to minimize or avoid the tax expense is committed by various ways made possible by tax laws. According to Finnerty, Merks, Petriccione, and Russo (2007), the ways that can be done for such things are: first, moving the tax subjects and or objects to countries that implement special treatment on tax or tax haven country on substantive tax planning. Second, tax avoidance attempt can be done through formal tax planning that give the taxpayer lowest tax expense. The third, by using anti-avoidance requirements towards transfer pricing, thin capitalization, treaty shopping, and controlled foreign corporation (specific anti avoidance rule), and transaction without business substance (general anti avoidance rule). In recent years, the tax authorites tried as hard as they can, not only to enforce clear boundaries between tax avoidance and tax evasion in tax planning, but also to prevent taxpayer from entering obscurity caused by tax laws (Bovi, 2005). With so many negative impacts caused by tax avoidance, research is needed to minimize the occurance, by investigating variables related to tax avoidance.

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“…Moreover, tax knowledge prevented the firms from tax frauds and scams. In addition, it enhances the businesses' efficiencies by enabling them to avail of timely tax benefits and not avoid taxes [107][108][109].…”

Section: Discussionmentioning

confidence: 99%

Effect of Tax Knowledge and Technological Shift in Tax System on Business Performance: A PLS-SEM Analysis

2022

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Taxes are imperative for the economy and businesses for better growth and development. Understanding the taxes and having the right approach towards them can make a vast difference between the success and failure of businesses. Therefore, the present paper aims to examine the impact of tax knowledge on business performance. The study is based on the primary survey of 450 registered Indian MSMEs. The empirical findings from the Partial Least Square Structure Equation Modeling highlight that tax knowledge enhanced operational efficiency and prevented firms from tax fraud. In addition, the technological advancement in the tax system and its knowledge led to proper tax administration and governance by firms which enhanced their productivity. The results may prove beneficial for policymakers, governments, and businesses because in-depth tax knowledge would lead to timely tax compliance and reduced tax evasion, avoidance, and scams.

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Normal, Abnormal Book-Tax Differences and Accounting Conservatism

Abstract: The present paper investigates the effect of book-tax differences on the accounting conservatism (as a proxy for financial reporting quality

Cited by 7 publications

References 41 publications

Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences

Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences

Slum Population In India: Extent And Policy Response

Effect of Tax Knowledge and Technological Shift in Tax System on Business Performance: A PLS-SEM Analysis

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