CONCEPTUAL NATURE OF THE CORPORATE INCOME TAX

2009 ◽  
Vol 36 (2) ◽  
pp. 31-74 ◽  
Author(s):  
Hugo Nurnberg
Keyword(s):  
Conceptual Framework ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Extensive Discussion ◽  
Professional Literature ◽  
Accounting Standard ◽  
Financial Reports ◽  
Entity Theory ◽  
Income Statement ◽  
Conceptual Nature

This paper examines a long-standing controversy about the conceptual nature of the corporate income tax: whether it is an expense, a loss, a distribution of income, or some anomalous item. That controversy reflects in part different theories of the accounting entity. Despite several authoritative pronouncements stating or implying that the tax is an expense, and despite an extensive discussion in the academic and professional literature, the controversy has never been fully resolved. Additionally, the tax is not characterized as an expense in corporate financial reports. The FASB's conceptual framework does not resolve this controversy, nor does the impending joint FASB-IASB revised conceptual framework. Within the context of a coalesced (or fused) proprietary-entity theory of the accounting entity, this paper leads to the unsurprising conclusion that the corporate income tax is an expense, albeit an expense with some remarkable characteristics. Additionally, this paper shows how the conceptual nature of the corporate income tax impacts its income statement and cash flow statement reporting, and how a better understanding of this conceptual controversy might preclude fruitless controversies over other accounting issues currently troubling accountants and accounting standard setters.

scholarly journals ANALISIS KOREKSI FISKAL DALAM RANGKA PERHITUNGAN PPH BADAN PT. KAWANUA DASA PRATAMA

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Felix Daniel Wongso ◽  
Jantje Tinangon ◽  
Stanley Walandouw
Keyword(s):  
Income Tax ◽  
Accounting Standards ◽  
Financial Statements ◽  
The State ◽  
Financial Accounting ◽  
Corporate Income Tax ◽  
Financial Reports ◽  
Taxable Income ◽  
Income Statement ◽  
A Company

PT.Kawanua Dasa Pratama is a company which is a resident and as an entity that has the responsibility to calculate, report, and deposit the tax payable to be paid to the State. However, there are problems that will occurred in the payment of taxes. This is due to the particular financial reports, especially income statement have commercial income statement and fiscal income statement. Both of them are distinctly different, from some point of views about Profit Commercial that refers to the Financial Accounting Standards, while referring to the Act Taxable Income - Tax Act applicable. These differences are simply found in the presence of income and expenses are recognized as income or expense by the company but are not recognized by the Tax. These differences require an adjustment or reconciliation so that the amount of corporate income tax payable are calculated by the company and the tax could be alike. The purpose of this study is to determine the fiscal income statement derived from the financial statements of fiscal correction in the commercial. In this study, obtained after correction of the fiscal profit of Rp 2.241.020.568 and had to pay tax of Rp 560.255.142.

scholarly journals ANALISA PENERAPAN PERHITUNGAN REKONSILIASI FISKAL TERHADAP LAPORAN KEUANGAN KOMERSIAL PT XYZ PADA WILAYAH KERJA KANTOR PELAYANAN PAJAK PULO GADUNG

account ◽  
2020 ◽  
Vol 7 (2) ◽  
Author(s):  
Deddy Dariansyah
Keyword(s):  
Income Tax ◽  
Financial Statements ◽  
Corporate Income Tax ◽  
Net Income ◽  
Financial Reports ◽  
Income Statement ◽  
Net Profit ◽  
Qualitative Descriptive ◽  
Descriptive Approach ◽  
Commercial Accounting

ABSTRACTThis research was conducted to determine the application of fiscal reconciliation calculations tocommercial financial reports at PT XYZ, because there are differences in calculations, especially profit with commercial accounting and taxable profit (fiscal). To bridge the differences in commercial financial reports and more efficient fiscal financial reports, fiscal financial reports are prepared together with commercial financial reports, which means that even though commercial or business financial reports are prepared based on business accounting principles, taxation provisions are dominant in the reporting process. financial statements. This research method uses a Qualitative Descriptive approach, which describes making a fiscal reconciliation report on PT XYZ's commercial financial reports, as well as collecting a number of other supporting data to get a clear picture of the facts about the state of the 2019 Financial Statements at PT XYZ. The results of this study are the calculation of the Reconciliation Report in the framework of calculating the Corporate Income Tax from the tax profit / loss statement for December 31, 2019 with the net profit before tax based on the calculation in the December 31 commercial income statement obtained by PT amounting to Rp. After calculating the fiscal reconciliation of the commercial income statement, PT XYZ's net income before tax is Rp. 10,315,000,000. Keywords : Fiscal Reconciliation, Commercial Financial Reports, Corporate Income Tax ABSTRAKPenelitian ini dilaksanakan untuk mengetahui penerapan perthitungan rekonsilasi fiskal terhadap laporan keuangan komersial pada PT XYZ, karena adanya  perbedaan perhitungan, terutama laba akuntansi komersial dengan laba kena pajak (fiskal). untuk menjembatani adanya perbedaan dalam laporan  keuangan  komersial  dan  laporan  keuangan  fiskal  yang  lebih  efisien,  maka  LaporanKeuangan fiskal disusun bersama dengan laporan keuangan komersial, yang berarti bahwa meskipun laporan keuangan komersial atau bisnis disusun berdasarkan prinsip akuntansi bisnis, tetapi ketentuan perpajakan dominan dalam proses pelaporan penyusunan laporan keuangan. Metode penelitian ini menggunakan pendekatan Deskriptif Kualitatif, yaitu mendeskripsikan tentang membuat laporan rekonsiliasi fiskal atas laporan keuangan komersial PT XYZ, serta mengumpulkan sejumlah data data pendukung lainnya untuk mendapatkan gambaran fakta-fakta yang jelas tentang hal keadaan Laporan Keuangan Tahun 2019 pada PT XYZ tersebut. Hasil penelitian ini perhitungan Laporan Rekonsiliasi dalam rangka perhitungan Pajak Penghasilan Badan dari laporan Laba/Rugi fiskal untuk 31 Desember 2019 dengan Laba bersih sebelum pajak berdasarkan perhitungan dalam laporan laba-rugi komersial 31 Desember yang diperoleh PT sebesar Rp 11.317.000.000,-. setelah dilakukan perhitungan rekonsilasi fiskal atas laporan laba rugi komersial, laba bersih sebelum pajak menurut fiskal yang dimiliki PT XYZ adalah sebesar Rp. 10.315.000.000 . Kata kunci: Rekonsiliasi Fiskal, Laporan Keuangan komersial Pajak penghasilan Badan

scholarly journals Pengaruh Partisipasi Penyusunan Pajak Penghasilan Badan Yang Terutang Terhadap Kinerja Bagian PPh Badan Dengan Koreksi Fiskal Sebagai Penentu Kebijakan

2020 ◽  
Vol 20 (2) ◽  
Author(s):  
Bayu Adi ◽  
Moh Afrizal Miradji
Keyword(s):  
Income Tax ◽  
Financial Statements ◽  
Corporate Income Tax ◽  
Preparation Process ◽  
Corporate Tax ◽  
Financial Reports ◽  
Corporate Entity ◽  
Future Policy ◽  
The Many

According to Hidayat (2013) in terms of financial statements, there are many contradictions within the company and the many interests that exist within the company in preparing financial statements to prepare their taxes to be compiled as Corporate Tax Income Tax reports (Article 25 Income Tax) many conflicts in preparing corporate tax reports, starting from income tax article 21 to income tax article 25 of the profit / loss statement, so that the tax return can be reported as a corporate taxpayer, then in this case before reporting and avoiding tax errors, a fiscal correction is needed to carry out tax preparation. According to Agustina (2007) states that in the preparation of taxes it is necessary to have coordination from various parties who use interests in the use of company finances due to future policy determinants.From this research it is found that in the process of preparing corporate tax many companies do not correct fiscal financial reports, many accounts are not included in the tax calculation, so that if used can reduce the tax burden.In addition, companies can be used to gain investor trust and fairness entities.From expenditures and reports can show the fiscal can show the performance of Corporate Income Tax goes well.The second proof that in the tax preparation process using fiscal correction shows the fairness of a tax obligation.In this case the fiscal financial statements and if corrected fiscal will cause good corporate income tax performance.This shows that there are no tax arrears in a corporate entity because the company complies with company regulations.

Applying the updated PBU 18/02 Standard in the context of transition to Federal Accounting Standard FSBU 25/2018

2020 ◽  
Vol 23 (5) ◽  
pp. 503-520
Author(s):  
I.A. Lisovskaya ◽  
N.G. Trapeznikova
Keyword(s):  
Systems Analysis ◽  
Income Tax ◽  
Corporate Income Tax ◽  
Methodological Issues ◽  
Deferred Taxes ◽  
Accounting Standard ◽  
Tax Accounting

Subject. This article considers the complex issues of the co-use of PBU 18/02 Corporate Income Tax Accounting and Federal Accounting Standard FSBU 25/2018 Accounting for Leases. Objectives. The article aims to analyze methodological issues related to the recognition of deferred taxes in a tenant's accounting with consideration to the differences in the reflection of lease operations in accounting and tax records. Methods. For the study, we used a systems analysis and generalization. Results. The article identifies a number of unresolved methodological issues relating to the provisions of the updated version of PBU 18/02 in the context of the transition to a new lease reflection procedure. Conclusions and Relevance. The article concludes that it is now appropriate to prepare methodological materials explaining and clarifying the practice of applying regulations on the reflection of deferred income tax on lease transactions. The results of the study can be used in scientific and practical activities, as well as to develop proposals to improve the methodology of Russian accounting, focused on convergence with modern international practices.

scholarly journals Perhitungan Laba Rugi Model Bagi Hasil Usaha Peternakan Sapi pada Bumdes Banna Lhokseumawe

2021 ◽  
Vol 5 (2) ◽  
pp. 450-457
Author(s):  
Dasmi Husin ◽  
Hilmi ◽  
Azhar
Keyword(s):  
Community Service ◽  
Financial Statements ◽  
Profit Sharing ◽  
Accounting Standard ◽  
Financial Reports ◽  
Standard Format ◽  
Direct Demonstration ◽  
Income Statement ◽  
Service Activity ◽  
Owned Company

This community service activity was carried out at Bumdes (village community owned company) of Banna in Paya Punteut Village, Muara Dua District - Lhokseumawe, Aceh. This village-owned company is known to be engaged in cattle fattening. The motivation and enthusiasm to develop from the management of BUMDes Banna is very high, but the managerial ability of Bumdes management is still very limited. Bumdes, who were expected to grow forward, turned out to be suffering from many problems. One of the problems is when the profit sharing is not proportional. The operating costs incurred are not appropriate. Livestock care work is given to a group of people on the condition that Bumdes bears all operational costs. Profit sharing is based on the revenue sharing system where Bumdes gets a 40% portion of the sales of cows. The service method used in the dedication of the application of science and technology is a participatory method, namely by making continuous observations, speeches, and direct demonstration (demonstration) methods. This activity is capacity building assistance for six months. The focus is on strengthening productivity and management such as compiling financial reports, business visibility, and strengthening archives management. The results of community service activities indicate that the profit sharing system has not fully met the standard accounting standard format, especially in the preparation of the income statement. In order for Bumdes to no longer feel that it is making a profit, but in fact it is a loss, the formulation of the AD-ART (regulation of company village) needs to be revised with the approval of Bumdes stakeholders through village meetings. Furthermore, the preparation of financial statements must be based on applicable accounting standards.

scholarly journals MENGUAK EFEK PENURUNAN TARIF PAJAK PENGHASILAN DI MASA PANDEMI COVID-19

2021 ◽  
Vol 14 (2) ◽  
pp. 171-183
Author(s):  
Alfi Bryan Garin Susanto
Keyword(s):  
Income Tax ◽  
Balance Sheet ◽  
The State ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
Total Income ◽  
Tax Rate ◽  
Income Statement ◽  
Deferred Tax ◽  
Tax Expense

This article explains the effect of lowering income tax rates during the COVID-19 pandemic. The government's role in maintaining economic stability is carried out by issuing fiscal policies, in terms of taxation, namely by reducing the Corporate Income Tax rate. This research intends to find out the results of a decrease in corporate income tax rates affecting a decrease in current taxes deposited into the state treasury, a decrease in the total income tax burden, and recording in the income statement financial statements. The informants of this research are members of the Tax Rules Update Forum. This type of qualitative research uses a netnography approach. The reduction in current taxes deposited into the state treasury benefits the company by minimizing the costs incurred for the obligation to deposit state taxes. Companies that have deferred tax liabilities receive deferred tax benefits recorded in the balance sheet account, so the total income tax expense has decreased. In recording the income statement, the company has deferred tax assets adding to the deferred tax expense. Deferred tax expense in profit or loss account.

scholarly journals PENYUSUNAN LAPORAN KEUANGAN BERDASARKAN STANDAR AKUNTANSI KEUANGAN ENTITAS TANPA AKUNTABILITAS PUBLIK NO. 5 PADA HOTEL BOULEVARD

2020 ◽  
Vol 15 (3) ◽  
pp. 496
Author(s):  
Halim Ellena Muliadi ◽  
Stanly W Alexander ◽  
Hendrik Gamaliel
Keyword(s):  
Qualitative Research ◽  
Research Method ◽  
Accounting Standard ◽  
Financial Reports ◽  
Income Statement ◽  
A Company ◽  
Descriptive Method ◽  
Descriptive Qualitative

Income statement is a report that describes the success of a company in carrying out its business activities. In this case, Boulevard Hotel in recording the income statement is still very simple not in accordance with applicable financial standards, namely Accounting Standard Non Publicly Accountable Entities (SAK ETAP). This study aims to make an income statement and describe and compare the results of the calculation of revenues, costs and profits based on SAK ETAP with the results of the calculation applied by Hotel Boulevard. This research is a descriptive qualitative research. The research method used is descriptive method that is describing the results of research in accordance with the facts found in the field. The results obtained indicate that Boulevard Hotel has not prepared financial reports in accordance with SAK ETAP No. 5. 

scholarly journals Estimating an impact of base erosion and profit shifting (BEPS) countermeasures — a case of business group

2017 ◽  
Vol 8 (4) ◽  
pp. 621-642 ◽  
Author(s):  
Renata Legenzova ◽  
Kristina Levišauskaitė ◽  
Egidijus Kundelis
Keyword(s):  
Income Tax ◽  
Case Analysis ◽  
Business Group ◽  
Corporate Income Tax ◽  
Macro Level ◽  
Profit Shifting ◽  
Professional Literature ◽  
Micro Level ◽  
Transaction Level ◽  
Level Analysis

Research background: Base erosion and profit shifting (BEPS) is a reduction of corporate income tax base and related corporate income tax payments via taking advantage of tax loopholes. OECD prepared 15 BEPS actions, which set countermeasures to fight tax avoid-ance in a coordinated way and shall be implement by countries on a voluntary basis. Literature review revealed that on a macro-level and company-level the extent of BEPS is large and statistically significant while studies addressing micro-level (transaction-level) impact and BEPS countermeasures’ related issues are limited. Purpose of the article: to identify methods and metrics available for evaluation of BEPS countermeasures’ impact on a micro-level and to assess BEPS countermeasures’ impact on a business group. Methods: the paper employs comparative analysis of scientific and professional literature to identify approaches and methods available for evaluation of BEPS countermeasures’ impact on a micro-level; and a case analysis method to assess an expected impact of BEPS coun-termeasures on a specific business group.  Findings & Value added: An approach used to estimate BEPS countermeasures impact on the micro-level differs from the one applied in macro-level analysis. To conduct the case analysis, OECD’s proposed macro-level fiscal impact assessment approach has been adapted for a micro-level analysis. It includes the analysis of the transactions subject to BEPS countermeasures and develops an action plan to manage related risks. The conducted case analysis differs from previous research as it employs transaction-level data and estimates fiscal effect of BEPS countermeasures on a micro-level. Analysis of the activities of the specific business group revealed that 5 from 15 countermeasures are relevant and directly applicable to this business group. They would not have an immediate significant direct fiscal effect, but risks related to BEPS countermeasures exist and action plans to manage negative effects of BEPS countermeasures have to be implemented.

scholarly journals The Impact of Corporate Income Tax on Capital Structure: Evidence from Serbian Food Industry

2021 ◽  
Author(s):  
Teodora Tica
Keyword(s):  
Capital Structure ◽  
Income Tax ◽  
Food Industry ◽  
Research Question ◽  
Corporate Income Tax ◽  
Financial Reports ◽  
The Republic ◽  
Tax Savings ◽  
Additional Support ◽  
The Impact

Research Question: The aim of this paper is to present the effect of corporate income tax on capital structure in the food industry of the Republic of Serbia. Motivation: Based on the empirical results of Moradi & Paulet (2018) and Kuc & Kalicanin (2021), the author's aim of the research conducted in this paper is to analyse the impact of corporate income tax on the capital structure in the Republic of Serbia as a developing country with an underdeveloped capital market and to support the results of this sporadically researched area of corporate finance in the Republic of Serbia. Idea: The author believes that by determining the optimal capital structure, it could be possible to reduce the burden of corporate income tax. Given that the food industry is one of the most significant and profitable industries in the Republic of Serbia, the results of this theoretical and empirical research would be of a great benefit to the local Tax Authority and to large taxpayers. Data: The research was conducted on a sample of 250 most active companies that operated within the food industry of the Republic of Serbia in the period from 2017 to 2019. The source of data for the purposes of this research are the official financial reports of companies registered with the Serbian Business Registers Agency. Tools: Elemental descriptive statistics techniques and panel regression analysis were applied throughout the data analysis. For the purpose of data processing the author used STATA statistical software. Findings: The results confirmed the existence of a negative and statistically significant relationship between tax savings based on depreciation costs and profitability on the one hand, and capital structure, on the other. Thus, the results indicate the need of profitable companies to use high depreciation costs to provide a reduced burden of corporate income tax with a capital structure shifted to accumulated own financial resources. In addition, the results of the regression model showed the absence of a statistically significant effect of tax savings based on interest costs on capital structure. Contribution: The contribution of this paper is reflected in additional support to existing discussions on impact of corporate income taxes on capital structure. Further, the paper contributes to business practice by determining how corporate income tax burden could be reduced by choosing optimal financial mix.

The investment activity of Russian business: Relationships with corporate income tax burden

2020 ◽  
Vol 23 (7) ◽  
pp. 800-823
Author(s):  
A.A. Razuvaeva ◽  
N.V. Pokrovskaya
Keyword(s):  
Income Tax ◽  
Systems Approach ◽  
Corporate Income Tax ◽  
Federal State ◽  
Tax Burden ◽  
Return On Assets ◽  
Investment Activity ◽  
Analysis And Synthesis ◽  
Tax Benefits

Subject. This article assesses the role of tax incentives for the Russian business' investment behavior. Objectives. The article aims to identify the relationship between the corporate income tax burden as an indicator responding to tax benefits application and the investment activities of Russian companies. Methods. For the study, we used the methods of analysis and synthesis, and the systems approach. The analysis covers the period from 2012 to 2018. The data of the Russian Federal State Statistics Service, Federal Tax Service of Russia, and the Ministry of Finance of the Russian Federation are the source of information for analysis. Results. The article summarizes the characteristics of the investment activity of the Russian business. However, the article does not reveal any obvious relationship between the income tax burden and the investment activity of the Russian business in the 2010s. There is also no link found between fixed investment and return on assets. Conclusions. The increase in income tax burden in the late 2010s, accompanied by a decrease in profitability, poses a threat to the active investment development of Russian organizations.

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