Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transition economy

被引:94
作者
Chan, K. Hung [1 ]
Lin, Kenny Z. [1 ]
Mo, Phyllis L. L. [1 ]
机构
[1] Lingnan Univ, Dept Accountancy, Tuen Mun, Hong Kong, Peoples R China
关键词
Book-tax differences; IFRS; Informativeness of book-tax differences; Tax-based accounting system; Tax noncompliance; TAXABLE INCOME; EARNINGS MANAGEMENT; BOOK INCOME; FIRMS; AVOIDANCE;
D O I
10.1016/j.jacceco.2010.02.001
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
We investigate whether a departure from a tax-based accounting system toward the adoption of International Financial Reporting Standards encourages tax noncompliance. We also examine whether such a departure, which weakens book-tax conformity, affects the informativeness of book-tax differences for tax noncompliance. Our evidence suggests that as book-tax conformity decreases, tax noncompliance increases. Although book-tax differences remain informative of tax noncompliance, the informativeness attenuates as book-tax conformity weakens. Additionally, firms with high incentives to inflate book income are more tax compliant than their counterparts after the departure from a tax-based accounting system. (C) 2010 Elsevier B.V. All rights reserved.
引用
收藏
页码:58 / 73
页数:16
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