Possibilities of Identifying Informal Enterprise Groups and Assessing Their Corporate Income Tax Avoidance Risk in the Context of Digitization

2021 ◽  
Author(s):  
Kristina Kundeliene ◽  
Evaldas Stankevicius ◽  
Vytautas Janilionis
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax ◽  
Enterprise Groups

scholarly journals Management Of Accrual Components In Response To Corporate Income Tax Rate Changes: Evidence From Korea

2013 ◽  
Vol 29 (5) ◽  
pp. 1421 ◽  
Author(s):  
Won-Wook Choi ◽  
Hyun-Ah Lee
Keyword(s):  
Financial Reporting ◽  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax ◽  
Tax Rate ◽  
Taxable Income ◽  
Accruals Management ◽  
Accrual Management ◽  
Aggressive Tax Avoidance ◽  
Statutory Tax Rate

Changes in the statutory corporate income tax rate provide firms with an opportunity to reduce their tax burden by shifting their taxable income from higher to lower tax rate years. One negative consequence of shifting taxable income across years is higher variation in book income for financial reporting purposes. Taxable income and book income are closely related in most countries, and, in general, reporting volatile book income across years is not a favorable signal to investors. This study investigates how firms shift taxable income and concurrently mitigate book income fluctuation by managing accrual components separately when the statutory income tax rate changes. Unlike prior studies, we decompose discretionary accruals into two components and examine distinctive patterns of accrual management in Korea, where book-tax conformity is high and aggressive tax avoidance is restricted. We find that firms manage book-tax accruals for taxable income shifting and manage book-only accruals to mitigate book income fluctuation. Furthermore, we find the extent of book-tax and book-only accruals management varies depending on the firms tax and financial reporting costs. The results of this study provide clear and compelling evidence of firms opportunistic accrual management behavior in response to statutory tax rate reduction.

TRADE LIBERALIZATION AND CORPORATE INCOME TAX AVOIDANCE

2019 ◽  
Vol 57 (4) ◽  
pp. 1963-1980 ◽  
Author(s):  
Wenjing Gao ◽  
Yao Lu ◽  
Xinzheng Shi
Keyword(s):  
Trade Liberalization ◽  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax

scholarly journals Corporate Income Tax Avoidance in the European Arena

2015 ◽  
Vol 11 (02) ◽  
pp. 61-68
Author(s):  
Tibor Pál ◽  
Zsófia Tóth
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax

scholarly journals Can Corporate Income Tax Cuts Stimulate Innovation?

2019 ◽  
Vol 55 (5) ◽  
pp. 1415-1465 ◽  
Author(s):  
Julian Atanassov ◽  
Xiaoding Liu
Keyword(s):  
Income Tax ◽  
Financial Constraints ◽  
Opposite Effect ◽  
Tax Avoidance ◽  
Income Taxes ◽  
Corporate Income Tax ◽  
Corporate Income Taxes ◽  
Corporate Innovation ◽  
Tangible Assets ◽  
Tax Cuts

We hypothesize that corporate income taxes distort firms’ incentives to innovate by reducing their pledgeable income. Using a differences-in-differences methodology, we document that large corporate income tax cuts boost corporate innovation. We find a similar but opposite effect for tax increases. Most of the change in innovation occurs 2 or more years after the tax change, and there’s no effect before the tax change. Exploring the mechanisms, we show that tax cuts have a stronger impact on innovation for firms with weaker governance, greater financial constraints, fewer tangible assets, smaller patent stock, and a greater degree of tax avoidance.

Corporate Income Tax Avoidance in China

2018 ◽  
pp. 284-306
Author(s):  
Guodong Yuan ◽  
Ron P. McIver ◽  
sLei Xu ◽  
Sang Hong Kang
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax

scholarly journals Political connections, state owned enterprises and tax avoidance: An evidence from Indonesia

2016 ◽  
Vol 13 (3) ◽  
pp. 279-283 ◽  
Author(s):  
Yudha Aryo Sudibyo ◽  
Sun Jianfu
Keyword(s):  
Income Tax ◽  
Tax Avoidance ◽  
Corporate Income Tax ◽  
Annual Reports ◽  
Political Connections ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Listed Firms ◽  
The Status ◽  
The Relationship

This study investigated the relationship between political connections and tax avoidance behaviour in Indonesian listed-firms in 2007-2013 year period. Some firms created links to government for obtaining benefits in various variables such import licensing, taxes, and supply-funds. We have manually managed to identify politically connected-firms from the annual reports and measure tax avoidance by using Cash Effective Tax Rate (CETR) as the proxy. Our observation indicated that politically connected-firms paid lower corporate income tax than non-politically connected-firms. Our study also examined how the status of State Owned Enterprise (SOE) correlates to tax avoidance. Firms hiring politically connected independent commissioners (INDCOM) in this study were more likely to show tax avoidance behavior. However, we have no strong evidence to prove our proposition regarding the type of political connections

scholarly journals Factors affecting the corporate income tax compliance in private enterprises in Ba Ria – Vung Tau province

2021 ◽  
Vol 5 (2) ◽  
pp. first
Author(s):  
Lê Thị Bảo Như ◽  
Nguyễn Thị Thu Hảo ◽  
Nguyễn Thị Hồng Hạnh
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Linear Regression Analysis ◽  
Tax Avoidance ◽  
Tax Compliance ◽  
Corporate Income Tax ◽  
Survey Method ◽  
Private Enterprises ◽  
Tax Rate ◽  
Factors Affecting

The corporate income tax management in Vietnam in general and Ba Ria - Vung Tau province, in particular, are facing a big challenge, which is finding the means of tax sufficient collection and avoidance of tax evasion. However, tax fraud or tax avoidance has been complicated and the number of these illegal activities tends to increase. From practical requirements, this paper contributes to the gap of previous studies by identifying factors affecting the corporate income tax compliance in private enterprises in Ba Ria - Vung Tau province. By survey method and linear regression analysis, the results show that there are seven factors that affect corporate income tax compliance, including the simplicity in tax declaration, tax inspection, the fairness of tax system, tax rate, financial status, the taxpayer's knowledge, and tax administration performance. Of all factors, the tax rate factor has a negative effect and the remaining factors have a positive effect on corporate income tax compliance. Based on these results, the authors propose some solutions to encourage private enterprises to comply with the corporate income tax regulations in Ba Ria - Vung Tau province.

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