Abstract
This work is focused on the impact of IFRS adoption for tax purposes in the Czech tax collection in years 2007 - 2011. There were used separate financial statements of these companies for five periods from 2007 to 2011. The most important goal of this work is to characterize the relationship between accounting profit or loss under IFRS and the income tax base and to find out the impact of taxation under profit in accordance with IFRS to total tax collection. We try to answer the main question: how would have changed the total income tax collection if selected companies mandatory using IFRS in their bookkeeping and financial reporting had used IFRS profit or loss without any deductions as a income tax base in years 2007 - 2011.
Highlights
The relationship between corporate income tax and accounting is one of the most discussed issues at present
# The article is processed as output of a research project International Financial Reporting Standards (IFRS) as an alternative accounting standards for the income tax base: the impact on the competitiveness of small open economy registered by the Grant Agency of the Czech Republic under the registration number P403/12/1901
In this paper we examine, how the Czech tax collection would have changed in selected years if companies had determined the tax base from accounting profit or loss in accordance with IFRS without any adjustments
Summary
The relationship between corporate income tax and accounting is one of the most discussed issues at present. The most important objective of this work is to describe the relationship between accounting profit or loss under IFRS and the income tax base and to find out what impact the taxation of profit in accordance with IFRS would have. Previous research based on data from 2009 and 2010 shows that the adoption of IFRS profit as the income tax base, without any modification, would lead to a slight increase in income tax collection. # The article is processed as output of a research project IFRS as an alternative accounting standards for the income tax base: the impact on the competitiveness of small open economy registered by the Grant Agency of the Czech Republic under the registration number P403/12/1901. Income tax published in 2010 by the Ministry of Finance of the Czech Republic with the view of describing the relationship of profit under IFRS and the income tax base
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