The Impact of Embedded Intelligent Agents on Tax-Reporting Decisions

2002 ◽  
Vol 24 (2) ◽  
pp. 60-78 ◽  
Author(s):  
John J. Masselli ◽  
Robert C. Ricketts ◽  
Vicky Arnold ◽  
Steve G. Sutton
Keyword(s):  
Intelligent Agents ◽  
General Assumption ◽  
Unintended Effects ◽  
Form Errors ◽  
Reporting Requirements ◽  
Tax Laws ◽  
Reporting Decisions ◽  
Tax Returns ◽  
Tax Reporting ◽  
The Impact

The use of tax preparation software to meet federal tax-reporting requirements has dramatically increased in the last decade. The general assumption is that such software improves the accuracy of taxpayers' returns, in part because embedded intelligent agents identify potential form errors, provide interpretations of tax laws, and highlight potential IRS audit flags. However, it is possible that these intelligent agents may have other, unintended effects as well. In particular, it is likely that the audit warnings embedded in many of these products may cause many taxpayers to take more conservative positions in their tax returns. Taxpayers most likely to be affected in this way are those who are relatively less knowledgeable about tax laws and reporting requirements. This study presents the results of a computerized tax experiment that are consistent with the above expectations. For novice taxpayers, the audit flags embedded in the software led to conservative adjustments that are rather extreme, resulting in significantly higher reported taxable incomes relative to their counterparts who did not have access to the embedded audit flags. Knowledgeable taxpayers, in contrast, maintained essentially the same level of taxable income and corresponding tax liability despite software warnings of potential audit.

Unintended Consequences of Linking Tax Return Disclosures to Financial Reporting for Income Taxes: Evidence from Schedule UTP

2017 ◽  
Vol 92 (5) ◽  
pp. 201-226 ◽  
Author(s):  
Erin M. Towery
Keyword(s):  
Financial Reporting ◽  
Income Tax ◽  
Multinational Firms ◽  
Unintended Consequences ◽  
Income Taxes ◽  
Unintended Effects ◽  
Reporting Requirements ◽  
Reporting Decisions ◽  
Tax Returns ◽  
Tax Benefits

ABSTRACT This study exploits the implementation of IRS Schedule UTP to examine how linking tax return disclosures to financial reporting for income taxes affects firms' reporting decisions. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. The reduction in reserves is concentrated among multinational firms and firms with larger reserves prior to Schedule UTP. These findings suggest that some firms changed their financial reporting for uncertain tax positions to avoid Schedule UTP reporting requirements without changing the underlying positions. In contrast with prior studies, this evidence represents a permanent, rather than a temporary, tax-induced reporting change. My results imply that linking tax return disclosures to financial reporting can have unintended effects on firms' reporting decisions.

Impact of roof shading on building energy performance in warm & humid climatic places of India

2020 ◽  
pp. 50-64
Author(s):  
Kuladeep Kumar Sadevi ◽  
Avlokita Agrawal
Keyword(s):  
Energy Consumption ◽  
Energy Conservation ◽  
Energy Performance ◽  
General Assumption ◽  
Climatic Conditions ◽  
Building Envelope ◽  
Passive Cooling ◽  
Base Case ◽  
U Value ◽  
The Impact

With the rise in awareness of energy efficient buildings and adoption of mandatory energy conservation codes across the globe, significant change is being observed in the way the buildings are designed. With the launch of Energy Conservation Building Code (ECBC) in India, climate responsive designs and passive cooling techniques are being explored increasingly in building designs. Of all the building envelope components, roof surface has been identified as the most significant with respect to the heat gain due to the incident solar radiation on buildings, especially in tropical climatic conditions. Since ECBC specifies stringent U-Values for roof assembly, use of insulating materials is becoming popular. Along with insulation, the shading of the roof is also observed to be an important strategy for improving thermal performance of the building, especially in Warm and humid climatic conditions. This study intends to assess the impact of roof shading on building’s energy performance in comparison to that of exposed roof with insulation. A typical office building with specific geometry and schedules has been identified as base case model for this study. This building is simulated using energy modelling software ‘Design Builder’ with base case parameters as prescribed in ECBC. Further, the same building has been simulated parametrically adjusting the amount of roof insulation and roof shading simultaneously. The overall energy consumption and the envelope performance of the top floor are extracted for analysis. The results indicate that the roof shading is an effective passive cooling strategy for both naturally ventilated and air conditioned buildings in Warm and humid climates of India. It is also observed that a fully shaded roof outperforms the insulated roof as per ECBC prescription. Provision of shading over roof reduces the annual energy consumption of building in case of both insulated and uninsulated roofs. However, the impact is higher for uninsulated roofs (U-Value of 3.933 W/m2K), being 4.18% as compared to 0.59% for insulated roofs (U-Value of 0.33 W/m2K).While the general assumption is that roof insulation helps in reducing the energy consumption in tropical buildings, it is observed to be the other way when insulation is provided with roof shading. It is due to restricted heat loss during night.

Does Wrongdoer Reputation Matter? Impact of Auditor-Wrongdoer Performance and Likeability Reputations on Fellow Auditors' Intention to Take Action and Choice of Reporting Outlet

2011 ◽  
Vol 23 (2) ◽  
pp. 207-234 ◽  
Author(s):  
Jesse C. Robertson ◽  
Chad M. Stefaniak ◽  
Mary B. Curtis
Keyword(s):  
Two Dimensions ◽  
Data Availability ◽  
Good Performer ◽  
Reporting Decisions ◽  
Prior Literature ◽  
Reporting Channel ◽  
Channel Preferences ◽  
Main Effects ◽  
The Impact ◽  
Selection Of

ABSTRACT We investigate the effects of auditor-wrongdoer reputations for performance and likeability on fellow auditors' intentions to take action in response to a questionable audit act. We also use this context to explore auditor selection of reporting outlets, when they do choose to take action. In an experiment with 181 auditors, main effects suggest that likeability reputation is a significant determinant of intention to take action, while performance reputation is marginally significant. As expected, interaction results indicate that auditors have the greatest intention to take action against less likeable, poor performers. Contrary to expectations, intention to take action against a more likeable, good performer is no lower than the mixed conditions. Thus, the influence of the two dimensions of reputation is complex. Additionally, we find auditors are more likely to whistle-blow internally than externally, and through non-anonymous outlets than anonymous outlets. Our contributions include exploring the impact of reputation on the actions of third parties, and advancing prior literature by considering the influence of wrongdoer attributes on reporting decisions and auditors' reporting channel preferences. Data Availability: Data are available from the first author upon request.

Mandatory corporate social responsibility in India: reporting reality, issues and way forward

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pawan Taneja ◽  
Ameeta Jain ◽  
Mahesh Joshi ◽  
Monika Kansal
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Mandatory Reporting ◽  
Content Type ◽  
Csr Reporting ◽  
Reporting Requirements ◽  
Expectation Gap ◽  
The Government ◽  
Corporate Social ◽  
The Impact

Purpose Since 2013, the Indian Companies Act Section 135 has mandated corporate social responsibility (CSR) reporting by Indian central public sector enterprises (CPSEs). CSR reporting is regulated by multiple Government of India ministerial agencies, each requiring different formats and often different data. This study aims to understand the impact of these multiple regulatory bodies on CSR reporting by Indian CPSEs; evaluate the expectation gap between regulators and the regulated; and investigate the compliance burden on CPSEs. Design/methodology/approach An interview-based approach was adopted to evaluate the perspectives of both regulators and regulated CPSEs on the impact of the new regulations on CSR reporting quality. The authors use the lens of institutional theory to analyse the findings. Findings Driven by coercive institutional pressures, CPSEs are overburdened with myriad reporting requirements, which significantly negatively impact CPSEs’ financial and human resources and the quality of CSR activity and reports. It is difficult for CPSEs to assess the actual impact of their CSR activities due to overlapping with activities of the government/other institutions. The perceptions of regulators and the regulated are divergent: the regulators expect CPSEs to select more impactful CSR projects to comply with mandatory reporting requirements. Originality/value The findings of this study emphasise the need for meaningful dialogue between regulators and the regulated to reduce the expectation gap and establish a single regulatory authority that will ensure that the letter and spirit of the law are followed in practice and not just according to a tick-box approach.

scholarly journals The Attenuating Effect of Intelligent Agents and Agent Autonomy on Managers' Ability to Diffuse Responsibility for and Engage in Earnings Management

2020 ◽  
Vol 34 (4) ◽  
pp. 143-164
Author(s):  
Peter C. Kipp ◽  
Mary B. Curtis ◽  
Ziyin Li
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Intelligent Agents ◽  
Autonomous Agents ◽  
Ethical Conduct ◽  
Human Agent ◽  
Perception Of Control ◽  
Reporting Decisions ◽  
Aggressive Financial Reporting

SYNOPSIS Advances in IT suggest that computerized intelligent agents (IAs) may soon occupy many roles that presently employ human agents. A significant concern is the ethical conduct of those who use IAs, including their possible utilization by managers to engage in earnings management. We investigate how financial reporting decisions are affected when they are supported by the work of an IA versus a human agent, with varying autonomy. In an experiment with experienced managers, we vary agent type (human versus IA) and autonomy (more versus less), finding that managers engage in less aggressive financial reporting decisions with IAs than with human agents, and engage in less aggressive reporting decisions with less autonomous agents than with more autonomous agents. Managers' perception of control over their agent and ability to diffuse their own responsibility for financial reporting decisions explain the effect of agent type and autonomy on managers' financial reporting decisions.

scholarly journals ANALISIS PERHITUNGAN PENCATATAN DAN PELAPORAN PAJAK PERTAMBAHAN NILAI ATAS EKSPEDISI ANTAR PULAU PADA PT. TAJUR JAKARTA

2014 ◽  
Vol 8 (3) ◽  
Author(s):  
Priscilia Joanna Rundengan ◽  
Jantje Tinangon ◽  
Inggriani Elim
Keyword(s):  
Case Studies ◽  
Descriptive Analysis ◽  
Value Added ◽  
Value Added Tax ◽  
Rate Of Development ◽  
Tax Laws ◽  
Dominant State ◽  
The Law ◽  
Tax Reporting

Value-added tax represent the source of revenue for very dominant state,to fulfill requirement of people. Company  as a taxpayer have to carry out their tax liability in accordance with the provisions of the tax laws are dynamic and constantly changing according to the rate of development of country’s economics. PT. Tajur Jakarta was established in 1967 which is located in Jl. Jati Baru No. 83 where the main activities of company is a shipping that uses trucking services, and that companies that count, reecord, and report Value Added Tax on the consumers of services on goods subject to Value Added Tax.The method in this research is using descriptive analysis which is describe the case studies and literature. Case studies conducted in PT TAJUR Jakarta while literature conducted by collecting data from the literature relevant to the Value-added tax. Pursuant to result of obtained research from the study,the company calculating, recording and reporting properly and in accordance with the Law No. 42 of 2009,using the rate of 10% for each taxable service / goods taxable, and also the results obtained also that the company has to deposit and tax reporting using e-SPT return and paid through the bank by the 15th of each month after the end of the tax period in accordance with law No. 42 of 2009 on Value Added Tax.

scholarly journals Mechanisms of Tax Collection in Light of the Financial Crisis in the Kurdistan Region - Iraq for the years 2015-2019

2021 ◽  
Vol 1 (2) ◽  
pp. 22-31
Author(s):  
Amer A. Majeed ◽  
Nawzad M. Hamawandy ◽  
Freya A. Abdul Karim
Keyword(s):  
Financial Crisis ◽  
Economic Situation ◽  
Kurdistan Region ◽  
Collection System ◽  
Tax Collection ◽  
Collection Process ◽  
Lack Of Information ◽  
Tax Laws ◽  
Tax Returns

The study aims to identify the collection system and the mechanism of collecting it in light of the financial crisis, as well as to identify the extent of the obligation of taxpayers to pay taxes in the Kurdistan Region during the years of study, and the problem of the study comes about the presence of obstacles in the process of tax collection, by not submitting periodic statements and paying the required tax And the lack of information related to the taxpayer's income in the tax declaration and its lack of inclusion, in addition to the ignorance of the taxpayers of the tax laws in light of the existence of the financial crisis, as well as the failure of the tax department to follow up the work of the taxpayers. The research reached a set of results, including the instability of the economic situation in the Kurdistan Region during the period of the study that negatively affected the tax collection process, and thus led to the inability of the taxpayer to pay the tax, and the conclusion of the research reached the presentation of a number of proposals that emphasize the encouragement of taxpayers to Submit tax returns and periodic statements on time according to the law, in order to ensure that the tax debt is collected on time to avoid the risk of non-collection, as well as drafting clear and explicit laws and legislations because laws determine the success or failure of the tax collection mechanism.

scholarly journals SOCIO-CULTURAL INFLUENCES ON CHILD LABOUR ISSUE IN ACEH PROVINCE INDONESIA

2019 ◽  
Vol 6 (2) ◽  
pp. 43-58
Author(s):  
YENNI ROSANA ◽  
RICHARD CHAUVEL ◽  
SIEW FANG LAW
Keyword(s):  
Formal Education ◽  
Cultural Influences ◽  
Self Esteem ◽  
General Assumption ◽  
Child Labour ◽  
Community Values ◽  
Aceh Province ◽  
The Government ◽  
The Impact ◽  
Laws And Regulations

This research investigates the socio-cultural meaning of child labour in Aceh Province, Indonesia. Child labour is illegal in Aceh. However, there is no enforcement of laws and regulations to prevent child labour from occurring and this daily phenomenon is escalating at an alarming rate. Furthermore, this research presents some complexities and paradoxes. While, the general assumption is that poverty is the main cause of child labour; however, this study found that children who are less poor are also working. Most of these children maintain their schooling while working. Consequently, some communities reject the impact of child labour on formal education. Many communities also see work as part of education, which teaches children responsibility, independence and self-esteem and/or pride, which represents the strong qualities of traditional Acehnese people, which has shaped the patterns and behaviours of children working in the region. The community’s perspectives and other social polemics have continued the existence of child labour in Aceh. Therefore, Although it mights be not easy for the government to take actions, it is important to consider that the reduction of child labour programs in Aceh is not merely by strengthening the implementation of laws and regulations, but also requires the understanding of community values and attitudes around the issue. Keywords: socio-cultural, Aceh, child labour, communities, education.

Paying the State Use Tax

2016 ◽  
Vol 45 (2) ◽  
pp. 260-282 ◽  
Author(s):  
John E. Anderson
Keyword(s):  
Income Tax ◽  
Research Question ◽  
Tax Compliance ◽  
Behavioral Study ◽  
Reporting Behavior ◽  
Tax Returns ◽  
Use Tax ◽  
Rate Selection ◽  
Tax Reporting ◽  
Selection Of

To improve use tax compliance, twenty-seven states have added a line to their income tax returns where taxpayers can report taxable sales. This article reports results of a behavioral study of a postcard “nudge” sent to income tax filers in one of those states, Nebraska, to encourage self-reporting of liability. The research question is whether the informational nudge was sufficient to alter self-reporting behavior. Data indicate that the nudge more than doubled the likelihood of use tax reporting and nearly doubled the amount of revenue collected, but the rate of use tax reporting remains extremely low. Probit models reveal that use tax reporting rises with income at a decreasing rate. Selection models are also estimated because of positive selection bias in the selection of the treatment group. Taken together, the results indicate that an informational nudge is not likely to be sufficient to substantially change use tax reporting behavior.

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