Tax compliance by firms and audit policy

Bayer, Ralph C.; Cowell, Frank

doi:10.1016/j.rie.2015.07.003

Cited by 19 publications

(22 citation statements)

References 6 publications

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“…The audit strategy with the main objective to increase state tax revenues aims to catch and prevent tax evasion carried out by the taxpayers (European Commission, 2006). Another study explains that the purpose of tax revenue is not only for state revenue, but also broadly affects the economy (Bayer and Cowell, 2016) by means that the results of this tax audit can create external information and be used by economic actors. The results of the tax audit are expected to be a trigger for other taxpayers to be more efficient.…”

Section: Literature Reviewmentioning

confidence: 99%

FOREIGN CAPITAL LOSS, FOREIGN INCOME TAX CREDIT, AND DOMESTIC INCOMES / Foreign Capital Loss, Foreign Income Tax Credit, and Domestic Incomes

Santoso

2021

Uluslararası Ekonomi İşletme Ve Politika Dergisi

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A taxpayer has a different interpretation about compensation for capital loss in the USA with taxable income in Indonesia from the tax authority (DGT). This compensation is related to foreign income tax credit. Tax court states that if the capital loss is recognized in calculating the foreign income tax credit, the capital loss must be considered in calculating the taxable income. By using the case in the tax court decision in Indonesia and analysis of existing regulations, this paper finds that are multiple interpretations in a regulation. The capital loss in the USA only can be compensated in the USA, not in Indonesia. This paper finds that besides the actual tax payments, the calculation of foreign income tax credit can use the tax rates in the tax treaty and effective tax rate from tax payment in a foreign country. The existing tax regulations should be revised to reduce multiple interpretations.

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Section: Literature Reviewmentioning

confidence: 99%

FOREIGN CAPITAL LOSS, FOREIGN INCOME TAX CREDIT, AND DOMESTIC INCOMES / Foreign Capital Loss, Foreign Income Tax Credit, and Domestic Incomes

Santoso

2021

Uluslararası Ekonomi İşletme Ve Politika Dergisi

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“…However, the scope of tax auditing tends to have a narrower functional focus of obtaining compliance with existing laws and the Revenue Code (compared to the broader scope of financial auditing to examine the compliance with the Accounting Act, the Companies Act and a number of tax laws). Tax compliance includes the examination of activities relating to tax calculations and evaluating whether they are in line with the firm's audit policy (Cuccia, 1994;Mata and Call, 2010;Bayer and Cowell, 2016).…”

Section: Auditing Approachmentioning

confidence: 99%

Technology auditing and risk management of technology incubators/science parks

Wonglimpiyarat

2017

WJEMSD

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Purpose The purpose of this paper is to discuss the application of risk management and auditing to technology incubators/science parks. The proposed audit plan focusses on the risk assessment using the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework. Design/methodology/approach The risk-based audit plan for auditing and managing the risks associated with the operation of technology incubators/science parks is based on the application of the COSO framework. Findings The proposed audit plan and performance analysis as a result of COSO application can be used as a risk management tool to improve effective operation of the incubator programmes. Originality/value The paper addresses the challenges of new auditing approach. In particular, the study applies the COSO framework to manage the risks of technology incubators/science parks which would help fill the gap in technology auditing. The audit plan and the performance analysis tool provide a new approach to assist R&D managers in performing risk assessments across various aspects of incubation operation.

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“…In addition to taxpayers' compliance and state revenues, tax audit influences the external information of other companies. It encourages audited companies and other companies of similar industries to be more efficient (Bayer & Cowell, 2016). Audited taxpayers will be more conservative in reporting their taxes and planning future taxes (Brushwood, Johnston, & Lusch, 2018).…”

Section: Introductionmentioning

confidence: 99%

Account Receivable Flow Test to Prove Real Sales Case: A Study Case of a Tax Court Decision in Indonesia

Santoso¹

2021

IJAFAP

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The data in the financial statements and the corporate tax return must be supported by accurate and valid evidence. When the Directorate General of Taxation (DGT) as a tax authority in Indonesia conducts a tax audit by an account receivable flow test (ARFT), the taxpayer net sales can be corrected to be larger due to a lack of evidence. This paper applied a case study of a tax court decision in Indonesia by a desk-based literature study. The DGT audited a taxpayer and produced a stipulation of additional taxable income. The taxpayer did not agree with the provision and the taxpayer filed an appeal to the tax court. This paper finds the taxpayer’s unorganized and inaccurate bookkeeping leads the judges to reject the taxpayer’s appealing.

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Tax compliance by firms and audit policy

Cited by 19 publications

References 6 publications

FOREIGN CAPITAL LOSS, FOREIGN INCOME TAX CREDIT, AND DOMESTIC INCOMES / Foreign Capital Loss, Foreign Income Tax Credit, and Domestic Incomes

FOREIGN CAPITAL LOSS, FOREIGN INCOME TAX CREDIT, AND DOMESTIC INCOMES / Foreign Capital Loss, Foreign Income Tax Credit, and Domestic Incomes

Technology auditing and risk management of technology incubators/science parks

Account Receivable Flow Test to Prove Real Sales Case: A Study Case of a Tax Court Decision in Indonesia

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