scholarly journals ANALISIS PENGARUH KEPEMILIKAN INSTITUSI, RASIO TOBIN Q, AKRUAL PILIHAN, TARIF EFEKTIF PAJAK, DAN BIAYA PAJAK DITUNDA TERHADAP PENGHINDARAN PAJAK PADA PERUSAHAAN PUBLIK

2019 ◽  
Vol 4 (2) ◽  
pp. 113
Author(s):  
Hotman T Pohan
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Income Smoothing ◽  
Earning Management ◽  
Generally Accepted Accounting Principles ◽  
Tax Rate ◽  
Deferred Tax

<p><em>The effort of tax planning by management or owner of corporate to decreas pay off tax obligation of corporation.Tax avoidance is part of tax planning wihtout conflict with tax rule,meanwhile tax evasion is tax planning that to conflict with tax rule .There are two kind of income for tax,first is income before tax which its calculation base on generally accepted accounting principles,second is income tax which calculation base on rule of statutory,however income tax can not be known directly therefore was is need estimated number for its proxy. The different kind of income is namely book-tax differrent(BTD),its proxy for tax avoidance. The objective of this research is to prove the factors that assumed influence book -tax different significantly or not. The methodology of this research is multivariate analysis with independent variables which are institutional ownership, Tobin Q, income smoothing, discreanary accrual proxy for earning management, efective tax rate, and deferred tax expense.The result of this research, is to prove that earning management influence negatively and significantly toward book-tax difference, income smoothing influence positively and significantly, efective tax rate influence positive and significantly toward boo-tax difference ,meanwhile institutional ownership and deferred tax expense has no influence toward book-tax difference,simultaniosly all factors significantly influence toward book-tax different with coefficient determination 26,5%.</em></p>

scholarly journals Income Tax Avoidance and Evasion

2016 ◽  
Vol 45 (6) ◽  
pp. 815-837 ◽  
Author(s):  
Duccio Gamannossi degl’Innocenti ◽  
Matthew D. Rablen
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Avoidance ◽  
Expected Return ◽  
Tax Rate ◽  
Increasing Function ◽  
Reported Income

We characterize optimal individual tax evasion and avoidance when taxpayers “narrow bracket” the joint avoidance/evasion decision by exhausting all gainful methods for legal avoidance before choosing whether or not also to evade illegally. We find that (1) evasion is an increasing function of the audit probability when the latter is low enough, yet tax avoidance is always decreasing in the probability of audit; (2) an analogous finding to the so-called Yitzhaki puzzle for evasion also holds for tax avoidance—an increase in the tax rate decreases the level of avoided income and the level of avoided tax; and (3) that, holding constant the expected return to evasion, it is not always the case that the combined loss of reported income due to avoidance and evasion can be stemmed by increasing the fine rate and decreasing the audit probability.

scholarly journals An Inquiry into Earning Management Motives: Evidence from Pakistani Distressed and Non-Distressed Firms

2019 ◽  
pp. 12-38
Author(s):  
Nida Aman ◽  
Farzand Ali Jan ◽  
Naeem Ullah ◽  
Ammara Mujtaba
Keyword(s):  
Tax Avoidance ◽  
Institutional Ownership ◽  
Earning Management ◽  
Managerial Ownership ◽  
Sample Period ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Corporate World ◽  
Distressed Firms ◽  
Debt Covenant

This research takes in view the motives that drive opportunistic managers in the Pakistani corporate world to manipulate firm earnings in different financial circumstances by resorting to real (REM) and accrual (AEM) earning management to reap their self-interests. The present study undertakes 188 distressed and 37 non-distressed firms for the sample period of 2010-2017. The summary stats confirm that both in distressed and non-distressed firms’ managers resort to REM practices more than AEM. The factors that urge mangers to take REM practices in distressed firms i.e., debt covenant restriction, managerial ownership and tax avoidance needs to be amended in such a way that it demotivates managers for carrying such practices in distressed firms. The factors that influence AEM practices in distressed firms are debt covenant restrictions, institutional ownership, highly valued firms and managerial ownership whereas in non-distressed firm these factors are debt covenant and effective tax rate. In non-distressed firms motives that urge mangers to adopt REM, practices are raising additional capital and tax avoidance practices.

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.

scholarly journals Earnings management and income tax evidence from Greece

2015 ◽  
Vol 12 (2) ◽  
pp. 511-529 ◽  
Author(s):  
Eftychia Kapoutsou ◽  
Christos Tzovas ◽  
Constantinos Chalevas
Keyword(s):  
Earnings Management ◽  
Significant Relationship ◽  
Income Tax ◽  
Management Practices ◽  
Management Accounting ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Total Current ◽  
Jones Model ◽  
Deferred Tax

The aim of this study is to examine the question of earnings management and, specifically, how this relates to taxation. In order to determine whether there is a correlation between earnings management and taxation, we investigate the discretionary accruals aspect of total accruals, i.e. the portion of profits which can be affected by management accounting choices, as calculated by the Jones (1991) model and the modified Jones model (Dechow et. al, 1995). Furthermore, we examine to what degree a correlation may exist between discretionary accruals and tax income (consisting of current and deferred tax). Our empirical findings demonstrate a statistically significant relationship between the levels of discretionary accruals and of total, current and deferred tax. This suggests that tax in general may be employed as a means to facilitate earnings management. The findings of this study suggest that IFRS provisions regarding taxation provide firms with a scope to get involved in earning management practices

scholarly journals Pengaruh Corporation Risk dan Good Corporate Governance terhadap Tax Avoidance dengan Kepemilikan Institusional sebagai Variable Pemoderasi

2020 ◽  
Vol 17 (2) ◽  
Author(s):  
Tryas Chasbiandani ◽  
Tri Astuti ◽  
Sri Ambarwati
Keyword(s):  
Corporate Governance ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Tax Rate ◽  
Good Corporate Governance ◽  
Common Effect ◽  
The Common ◽  
Corporate Risk

Tax avoidance measured by Earning Tax Rate (ETR) is considered to be able to describe the real activities of tax avoidance carried out by the company. The purpose of this study was to analyze the effect of Corporation Risk and Good Corporate Governance on Tax Avoidance with Institutional Ownership as a Moderating Variable. This study uses a sample of non-banking and financial companies listed on the Indonesia Stock Exchange for the period of 2014-2016. The analysis in this study uses the common effect method. The results of this study indicate that corporate risk does not significantly influence tax avoidance, but with institutional ownership as a moderating variable, corporate risk has a significant effect on corporate tax avoidance. Corporate governance as measured by institutional ownership, board of commissioners and audit quality has a significant effect on tax company avoidance.Tax avoidance yang diukur berdasarkan Earning Tax Rate (ETR) dianggap mampu menggambarkan aktivitas nyata dari tax avoidance yang dilakukan oleh perusahaan. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh Corporation Risk dan Good Corporate Governance Terhadap Tax Avoidance dengan  Kepemilikan Institusional  Sebagai Variable pemoderasi. Penelitian ini menggunakan sampel perusahaan non perbankan dan keuangan yang terdaftar di Bursa Efek Indonesia periode 2014 – 2016. Analisis dalam penelitian ini menggunakan metode common effect.  Hasil dari penelitian ini menunjukkan bahwa corporate risk tidak berpengaruh secara signifikan terhadap tax avoidance, namun dengan kepemilikan institusional sebagai variabel pemoderasi, corporate risk berpengaruh signifikan terhadap tax avoidance perusahaan.Corporate governance yang diukur dengan kepemilikan institusional, dewan komisaris dan kualitas audit berpengaruh signifikan terhadap tax avoidance perusahaan. 

scholarly journals The Use of International Tax Planning in Subsidiaries from the Financial and ICT Sectors in the Czech Republic

2021 ◽  
Vol 24 (1) ◽  
pp. 182-196
Author(s):  
Vít Jedlička
Keyword(s):  
Global Economy ◽  
Transfer Pricing ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Tax Burden ◽  
Effective Tax Rate ◽  
Tax Havens ◽  
Tax Rate ◽  
Dummy Variable ◽  
International Tax

Tax avoidance is an important element of management in the global economy. Managers use tax havens for reducing a company’s effective tax rate. The most common practices in international tax planning can be divided into three groups: loans and their related interest, royalties, and transfer pricing. The aim of this article is to find the determinants of the tax burden faced by foreign-owned subsidiaries. Therefore, a model was created for the tax burden, focusing on the special position of subsidiaries within international tax planning. For this purpose, taxes/outcomes was established as a new dependent variable. The panel data used include Czech companies that are owned by parent companies located in other EU countries. The model distinguishes EU tax havens from regular member states; sector dummy variables are also included. The regression model that was created did not confirm the assumed dependencies. Rather, it indicated other important determinants: profitability, the share of intangible assets, size, and the dummy variable for the ICT sector. Based on the regression results, the independent variables connected with known tax planning schemes have relatively low importance. The significance of these results can be seen in the subsequent conclusions. First of all, there is no difference between the subsidiaries’ tax burdens based on the parent company’s location. Corporations use international tax planning whether or not they are owned from a tax haven. The second significant conclusion indicates the importance of certain sectors and their attributes concerning the tax burden. Companies from the ICT sector are linked to a lower tax burden. On the other hand, the dependencies within the financial sector are not statistically significant. From the perspective of further research, it would be constructive to incorporate the subsidiary’s position within the group.

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.

scholarly journals PENGARUH PROFITABILITAS, LEVERAGE DAN CORPORATE GOVERNANCE TERHADAP PERENCANAAN PAJAK PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2017

2019 ◽  
Vol 4 (1) ◽  
pp. 131
Author(s):  
Indah Rahmadini ◽  
Nita Erika Ariani
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Effective Tax Rate ◽  
Tax Rate

This study aims to examine the effect of profitability, leverage, and corporate governance on tax planning. The independent variables used in this study are profitability, leverage, institutional ownership, managerial ownership, independent commissioners and audit committees. While the dependent variable in this study is tax planning.Tax planning in this study the measured of Cash Effective Tax Rate (CETR). The population in this study are manufacturing companies listed on Indonesian Stock Exchange (BEI) in the period 2014-2017. Determination of samples in this study using purposive sampling method. There are 45 manufacturing companies listed on BEI used as research samples based on predetermined criteria. The results showed that profitability, leverage, managerial ownership, independent commissioners and audit committees had a significant effect on tax planning. Meanwhile institutional ownership has no significant effect on tax planning

Tax Planning: Optimization of a Taxation Basis on Profi t Tax

Auditor ◽  
2019 ◽  
Vol 5 (11) ◽  
pp. 43-46
Author(s):  
А. Клоницкая ◽  
A. Klonickaya
Keyword(s):  
Tax Evasion ◽  
Income Tax ◽  
Tax Planning ◽  
Planning Optimization ◽  
State Tax

This article describes how a state tax authority controls the activities of taxpayer legal persons, and also presents characteristics that distinguish tax optimization from intentional tax evasion. The methods of official optimization of income tax are considered in detail.

Tax Avoidance and Tax Evasion: The Indian Case

1987 ◽  
Vol 21 (2) ◽  
pp. 233-255 ◽  
Author(s):  
Anil Kumar Jain
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Tax Planning ◽  
Business Relationships ◽  
Black Economy ◽  
Legal Provisions ◽  
Tax Laws ◽  
Conversational Language

‘Tax avoidance’ and ‘tax evasion’ are terms so frequently referred to in economic and business relationships today that they constitute part of our conversational language and people in general use these terms even without knowing their exact meaning and difference. Whereas tax avoidance implies a situation in which the taxpayer reduces his tax liability by taking advantage of the loop-holes and ambiguities in the legal provisions, in the case of tax evasion, facts are deliberately misinterpreted and the tax liability is understated. Thus, while tax avoidance is perfectly legal and is, at times, referred to as ‘tax planning’, tax evasion is illegal and, therefore, carries with it the risk of penalties and prosecutions under the tax laws. As such, the black economy comprises the sum total of all the various methods of tax evasion but does not include tax avoidance. Accordingly, whereas the consequences of the two phenomena are different for the taxpayers, both reduce the revenue of the Exchequer and consequently need to be checked to the greatest extent possible.

Sign in / Sign up

Export Citation Format

Share Document