Comparative Analysis of Global Tax Regulations and Corporate Financial Reporting Practices

Abstract

This paper explores the connection between international taxation and corporate reporting, in particular how overlapping tax jurisdictions affect the quality of corporate disclosures. With the growing complexity of international business and the differences between tax systems, understanding these interactions are important to policymakers and stakeholders. It employs a mixed-methods strategy that involves the literature review, quantitative analysis of financial statements from multinational companies and qualitative interviews with tax experts. The quantitative study employs regression approaches to distinguish commonalities in profit statements and tax liabilities across different systems of regulation; the qualitative insights highlight the challenges faced by e-commerce giants in navigating through fragmented tax regimes. This has a significant implication: the overall perception of seriousness between countries in tax and commercial programming can differ depending on how strict or lax their tax legislation is with corporations more likely to deploy profit shifting and minimisation tactics where the leveraging is lower. Therefore, it seems we have found substantial inconsistencies across global financial reporting practices! Industries that rely on intangible assets, like tech and pharma, are especially vulnerable to exploiting these discrepancies. The absence of alignment of international tax rules with financial reporting standards, in the conclusion shows great impediments to achieving harmonization of corporate governance and economic transparency worldwide. This study underlines that we need more international coordination in harmonising tax and reporting rules, to create a more equal and transparent global financial system. Regulatory challenges are growing, and future research should explore the impact of emerging technologies such as blockchain and digital assets on tax compliance and reporting practices.