Book Tax Research Articles

PENGARUH BOOK TAX DIFFERENCES DAN TINGKAT UTANG TERHADAP PERSISTENSI LABA (Studi Empiris Pada Perusahaan Sektor Property dan Real Estate yang terdaftar di Bursa Efek Indonesia tahun 2016-2018)

Earnings persistence is one of the estimated value of earnings and an element of earnings relevance. The purpose of this research is to determining the effect of variable book tax differences, and leverage either simultaneously or partially to the variable earning persistence. Book tax differences variable is proxied with temporary differences and permanent differences in fiscal reconciliation. Populations used in this study is property and real estate sector companies listed on the Indonesia Stock Exchange 2016-2018, were entered as the population was registered are 70 companies, then obtained a sample of 18 companies. The sampling technique used was purposive sampling technique in which the number of observations obtained this study was 41. Data analysis conducted with multiple regression model with help of software SPSS version 25. Based on the results of this research showed a combination of two variables (book tax differences is proxied with temporary differences and permanent differences, and leverage) can affect the earning persistence 35%, while the rest influenced by other variables outside the research. The results also showed simultaneously Book tax differences variable is proxied with temporary differences and permanent differences an leverage significant effect on earnings persistence. From the partial test results showed that the variables Book tax differences variable is proxied with permanent differences and leverage positive significant effect on earning persistence. Variable Book tax differences variable is proxied with temporary differences did not have any affect on Earnings Persistence.

Kwenowie – (nie)zapomniana mniejszość

The Kven People have lived in the North Cape area since ancient times. The first account of the Cwenas is to be found in Ohthere’s of Hålogaland account, which dates back to 890 C.E., and describes the existence of peoples living in Cwena land in the north of Sweden. Kven people are said to be descendants of Finnish peasants and fishermen who emigrated from the northern parts of Finland and Sweden to Northern Norway. The tax books from the sixteenth century indicate clearly that the Kven people lived permanently in the area of the Gulf of Bothnia. The Kvens were well integrated, and perceived as a valuable workforce. Still, tempestuous Russian history combined with Finnish dependency on the Russian Empire backfired on the perception of the Kvens in Norway, as they were seen as a menace to national security. As a result, they were made to go through a very strict assimilation process from the nineteenth century onwards. After WWII, their situation became somewhat better, but it still left much to be desired, since they were thought to collaborate with the USSR. The wind of change started to blow in 1996, when the Kvens were granted minority status in Norway, and in 2005 the Kven language was recognized as a minority language in Norway.

PENGARUH TAX RETENTION RATE (TRR), BOOK TAX DIFFERENCES (BTD) DAN EFFECTIVE TAX RATE (ETR) TERHADAP KINERJA KEUANGAN PADA PERUSAHAAN PROPERTI DAN REAL ESTATE YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2015-2019

ABSTRACT; One of the measurement of company performance is financial performance. Financial performance is a formal effort that has been made by a company that can measure the company's success in generating profits. Profit is the simplest measure to assess a company's financial performance. Financial performance will also provide an overview of the efficiency of the use of funds regarding the results of obtaining profits, which can be seen after comparing net income after tax. Taxes are costs that must be incurred by the company. Therefore, companies through management always strive to minimize taxes and this effort is often referred to as tax planning. This study aims to examine the effect of tax retention rate (TRR), book tax differences (BTD) and effective tax rate (ETR) on financial performance by using a proxy measure of Net Profit Margin (NPM).
 The method used in this research is descriptive verification with a quantitative approach. The data used is secondary data, data collection is done through documentation and literature research on property and real estate companies listed on the Indonesia Stock Exchange in 2012-2016 with a population of 46 companies. The number of samples in this study were 18 companies which were determined using purposive sampling. Data analysis to answer the problem formulation used: descriptive analysis, inferential statistics, classical assumption test, multiple linear regression test, correlation coefficient test, determination coefficient test, and hypothesis testing using partial test (t test) and simultaneous test (f test). Data processing using the SPSS application.
 Based on the results of the research on the t test, it was found that TRR had a positive effect on financial performance where the tcount value of 2.773 was greater than the t table of 1.987. BTD has a positive effect on financial performance where the tcount value of 3.784 is greater than the t table of 1.987.ETR has a positive effect on financial performance where the tcount of 2.627 is greater than the t table of 1.987. Based on the results of the research on the f test, it was found that TRR, BTD, ETR had a significant effect on financial performance where Fcount was greater than 6.770 was greater than F table 3.10.
 Keywords: Tax Retention Rate, Book Tax Differences, Effective Tax Rate, Financial Performance

Are CEO Overconfidence and Audit Firm Size Related To Tax Avoidance?

Objective – This study aims to examine whether audit firm size mitigates the relationship between CEO overconfidence and tax avoidance. CEO overconfidence has the characteristics of a very high level of self-confidence which influences the pattern of thought and the way they make strategic decisions. CEO overconfidence has a tendency to avoid taxes. It aims to show competence in tax management and raise funds for investment. External party oversight, such as by audit firms, will mitigate the relationship between CEO overconfidence and tax avoidance through an attitude of independence, as well as competence and function as examiners of the company's financial reporting. Methodology/Technique – This study uses a sample of Indonesian non-financial companies in the period 2013-2017. This study analyses the data with statistical methods using linear multiple regression. Findings – The results of this study indicate that CEO overconfidence is positively related to tax avoidance, while audit firm size is negatively related to tax avoidance. However, this study has not been able to prove the influence of audit firm size on the relationship between CEO overconfidence and tax avoidance. Type of Paper: Empirical Keywords: CEO overconfidence; Tax Avoidance; Audit Firm Size; Big 4; Book Tax Difference. Reference to this paper should be made as follows: Sutrisno, P; Pirzada, K. 2020. Are CEO Overconfidence and Audit Firm Size Related To Tax Avoidance?, Acc. Fin. Review 5(2): 72 – 81. https://doi.org/10.35609/afr.2020.5.2(3) JEL Classification: M41, M49.

Pengaruh Book Tax Differences Terhadap Kualitas Laba Pada Perusahaan Sektor Barang Konsumsi Di Indonesia

This research aimed to determine the effect of book tax differences to the quality of earnings on the next period in manufacturing companies in the customer goods industry sectors listed on the Indonesia Stock Exchange (BEI) from 2010 to 2013. The types of data used in this research was quantitative data methods with descriptive analysis testing, and statistical analysis was linear regression. The sampling methods used was purposive sampling. The result of this research indicate that large positive book tax differences is not significant effect on the quality of earnings. Companies with large positive book tax differences not shown to have lower persistence than firms with small book tax differences. Large negative book tax differences is significant effect on the quality or earnings. Companies with large negative book tax differences shown to have lower persistence than firms with small book tax difference

Agressividade fiscal e a lucratividade nas empresas do setor de energia elétrica do Brasil

Este estudo teve por objetivo analisar a influência da agressividade fiscal na capacidade de gerar lucro nas empresas do setor de energia elétrica listadas na B3 no período de 2013 a 2018. Trata-se de pesquisa descritiva, quantitativa, documental e bibliográfica. A amostra conta com 37 empresas durante o período estudado, formando um total de 222 observações. Foram utilizadas a BTD (Book Tax Differences) e a GAAP ETR (Generally Accepted Accounting Principles, Effective Tax Rate) como métrica de agressividade fiscal e a ML (Margem Líquida), o ROA (Return on Assets) e o ROI (Return on Investment) como indicadores de lucratividade. Os resultados foram alcançados por meio de estatística descritiva dos dados, análise de regressão linear, na qual foi aplicado um modelo de painel com efeitos aleatórios, e análise de regressão quantílica. Com o resultado detectou-se que, de maneira geral, quanto maior o nível de agressividade fiscal, maiores os índices de lucratividade. Esse estudo visa contribuir para que as empresas do setor de energia elétrica verifiquem a eficiência da utilização de um planejamento tributário agressivo, dando suporte à tomada de decisão.

Dampak Praktik Manajemen Laba terhadap Manajemen Pajak Perusahaan

This study wants to determine the effect of earnings management practices on book tax difference. Based on empirical evidence, companies action related to managing their earnings have intention to manage their tax expense. This phenomenon commonly appears in many countries. The sample in this study is a company engaged in the manufacturing sector between 2010-2013 firm years and listed in Indonesia Stock Exchange. The result in this study confirms that Discretionary accruals have a positive and significant effect on book tax difference. These findings suggest that the greater the level of earnings management by the company, the greater the difference in commercial profit to taxable profit

Taxing Corporations on Financial Statement Earnings: Current Proposals, Long-Standing Concerns

Book-tax differences have existed for as long as the corporate income tax. And for almost as long, there have been regular efforts to introduce greater conformity between the two. Over the past four decades, proposals to substitute (in whole or in part) a tax base that relies on profit as reported in financial statements for the legislatively enacted corporate tax base have been regularly introduced. These proposals are generally based on the assumption that taxing book income provides a simpler, fairer and more efficient way to tax corporate income. The proposals also assume that taxing book income permits less opportunity for corporate tax avoidance. Such efforts for parity between book and tax income – also referred to as book-tax conformity – have regularly failed to gain traction. Nonetheless, the idea is again rearing its head both in the international and domestic spheres. In the international arena, two proposals introduced by the OECD for taxing the digitalized economy relied to a greater or lesser extent on a tax base computed from multinationals’ consolidated financial accounts economy (OECD 2019a,b). Domestically, at least three leading Democratic presidential candidates for the 2020 election proposed a minimum tax on corporate profits as computed from financial statements, including former Vice President Joe Biden. The resurgence of interest in the use of financial statement profits as an alternative tax base prompts a reexamination of the history of similar prior proposals, the critiques levied against them, and the reasons for their lack of success. Careful consideration of the problems highlighted by those who have earlier delved into the subject is due, in order to determine whether its possible to address concerns previously raised before moving forward with a plan to tax multinationals based on financial statement profits. Or reconsideration of these concerns may make clear that the detriments outweigh the perceived benefits of these proposals. Part I of this paper outlines the history of prior proposals for book tax conformity. Part II reviews more recent proposals for taxing multinationals based on financial statement profits both domestically and internationally. Part III highlights concerns that have been raised, both about older and more recent proposals. Part IV concludes with a consideration of the extent to which concerns raised in other contexts remain valid for proposals made in 2019, and whether it may be possible to modify these proposals to adequately address the problems.

EARNING PERSISTENCE ON FIRM TAX DIFFERENCES AND FAMILY OWNERSHIP

Abstract- Prior research find evidence consistent with the hypothesis that future earnings influenced by difference between accounting and fiscal earnings (book tax differences). Many investors forming expectations of future earnings information derived from the difference between fiscal and commercial earnings, there were some investors would satisfied to see small differences between fiscal and commercial earnings, otherwise have the opposite view. This study aim to investigate how book-tax difference and family ownership play a role in the persistence of earnings. The authors using a sample 692 firm years of Indonesian listed companies within 2011-2016, they estimate cross-sectional regressions of the proxy for book-tax differences and family ownership on earning persistence. The study found that current pre-tax earnings can predict future earnings and also firm years with large book-tax difference have less earnings persistence than firm years with small book tax difference. Further, this study found no evidence that family ownership have significant role in persistence of earnings. 
 
 Keywords: Earning Persistence, Future earnings, Pre-tax earnings, Book tax difference, Family Ownership.

Political Connection, Ownership Structures and Tax Aggressiveness: The Case of Indonesia

<p><em>The main </em><em>purpose</em><em> of this research is to examine the influences of political connection and ownership structures towards the tax aggressiveness</em><em> in Indonesian companies</em><em>. This research is a quantitative research and the </em><em>samples</em><em> consist of the companies listed in the Indonesia Stock Exchange in 2015-2016. Furthermore, the data used in this research is secondary data obtained from the companies’ financial reports and annual reports. The tax aggressiveness </em><em>is</em><em> measured with Book Tax Differences (BTD) proxy. The result of this research shows that political connection</em><em>,</em><em> </em><em>government ownership, and foreign ownership give negative significant effects towards tax aggressiveness, while institutional ownership give no significant effect towards tax aggressiveness. The limitation of this research is the using of 2-year samples only that consist of companies in various sectors. In addition, the companies that are classified in a particular sector, are given different tax treatment by Directorate General of Taxes.</em><em> </em><em>This research can be beneficial for making taxation regulation in the future. This research is also expected to be the supporting literature for the next research for the scholars in the taxation and accounting field related to the company’ tax aggressiveness. This research extends the previous research by adding some type of ownership structure in analyzing factors that affect tax aggressiveness in Indonesia. The ownership structure consists of government ownership, foreign ownership, and institutional ownership. Furthermore, political connections in this study were analyzed from connections through boards of directors and commissioners.</em><em></em></p>

Political Connection, Ownership Structures and Tax Aggressiveness: The Case of Indonesia

The main purpose of this research is to examine the influences of political connection and ownership structures towards the tax aggressiveness in Indonesian companies . This research is a quantitative research and the samples consist of the companies listed in the Indonesia Stock Exchange in 2015-2016. Furthermore, the data used in this research is secondary data obtained from the companies’ financial reports and annual reports. The tax aggressiveness is measured with Book Tax Differences (BTD) proxy. The result of this research shows that political connection , government ownership, and foreign ownership give negative significant effects towards tax aggressiveness, while institutional ownership give no significant effect towards tax aggressiveness. The limitation of this research is the using of 2-year samples only that consist of companies in various sectors. In addition, the companies that are classified in a particular sector, are given different tax treatment by Directorate General of Taxes. This research can be beneficial for making taxation regulation in the future. This research is also expected to be the supporting literature for the next research for the scholars in the taxation and accounting field related to the company’ tax aggressiveness. This research extends the previous research by adding some type of ownership structure in analyzing factors that affect tax aggressiveness in Indonesia. The ownership structure consists of government ownership, foreign ownership, and institutional ownership. Furthermore, political connections in this study were analyzed from connections through boards of directors and commissioners.

Urgensi Persistensi Laba

This study aim to obtain empirical evidence about book tax difference is proxied by temporer difference and institutional ownership to earning persistence in manufacturing companies on the Indonesian Stock Exchange. The method used is multiple regression analysis with program SPSS 25. The population in this study is manufacturing companies on the Indonesian Stock Exchange in 2017 until 2019. The Sampel in this research was done by purposive sampling methode, obtained as many as 67 companies used as a sampel with a predetermined criteria. The result indicate that the variable book tax difference and institutional ownership has significantly affect to earning persistence.

Dampak Perbedaan Antara Laba Akuntansi dan Laba Fiskal (Boot Tax Differences) serta Faktor yang Mempengaruhi Perilaku Persisntensi Laba Perusahaan Manufaktur di Indonesia

The purpose of this study is to analyse empirical evidence of the effect of differences between accounting earnings and fiscal profits (book tax differences), operating cash flows and accrual amounts on the persistence behavior of corporate earnings. This study uses data from manufacturing companies in the Indonesian stock exchange during the period 2015 to 2017. The sample selection is have purposive sampling method and obtained a sample of 71 manufacturing companies in Indonesia that have met the research criteria. Data is analyzed with multiple regression to have the effect of independent variables on earnings persistence. The results showed that differences in accounting profit and taxable income and the magnitude of accrual did not affect earnings persistence while operating cash flow had an effect on earnings persistence.

TELAAH INSENTIF PAJAK PENERBITAN BUKU

ABSTRACTThe creative economy is expected to be increasingly able to improve the quality of national economic development. The publishing sector which is one of 16 (sixteen) creative industry fields is expected to play a more important role to educate people. Thus, it is necessary to develop supporting publishing industry in Indonesia. This article is intended to answer the following five issues: (i) how are the developments, obstacles, opportunities and challenges in the publishing activities? (ii) what is the value chain of publishing business, and how is the tax policy in each chain? (iii) how should tax book publishing incentives be provided? (iv) what is the impact of providing tax incentives on the prospects of a publishing business? (v) how can the provision of tax incentives encourage the development of the publishing sector and the competitiveness of its industry? This study uses a mixed method approach and information deepening is carried out in 7 provinces in Indonesia. This article has resulted two special findings: (i) identifying crucial issues in the book publishing industry; and (ii) produce a formulation of government policy recommendations, specifically to provide tax incentives to encourage the growth of the publishing sector.Keywords: creative economy; publishing book; tax incetives

PENGARUH TEMPORARY AND PERMANENT DIFFERENCE TERHADAP PERTUMBUHAN LABA DENGAN SMALL AND LARGE BOOK TAX DIFFERENCES SEBAGAI MODERASI

Book Tax Difference occur due to differences between the financial reporting and tax reporting in terms of accounting principles, methods and accounting procedures, the recognition of income and expenses, as well as the treatment of income and expenses. Due to the emergence difference will cause earnings growth will be increased or decreased. The profit growth can be affected by the components that refer to IAS 46 regarding the income tax and IAS 12 on income tax Deferred tax is caused by the presence of taxable temporary differences. The study aims to find temporary and permanent difference to the growth of small and large profits with book tax differences sebagail moderation. This research is a descriptive research. With a sample of companies manufacturing sector Textile & Garment Industry, Customers, Housewares, Plastic & Packaging, Pulp & Paper, Glass, Metal, and Cable 30 manufacturing companies listed on the Stock Exchange in 2013 to 2015. Data were analyzed using regression multiple linear models with interactions basis moderation.The results showed that the temporary difference and permanent difference significant negative effect on profit growth. With small and large book tax differences are moderating variable.

PENGARUH BOOK TAX DIFFERENCES, ARUS KAS OPERASI, TINGKAT HUTANG DAN UKURAN PERUSAHAAN TERHADAP PERSISTENSI LABA (Pada perusahaan sub sektor basic dan chemical yang terdaftar di Bursa Efek Indonesia periode 2014-2018)

This study aims to determine the effect of book tax differences, operating cash flow, debt levels and company size on earnings persistence in basic and chemical sub-sector companies listed on the Indonesia Stock Exchange (IDX). The time period of the study is 5 years, namely the 2014-2018 period. This research population includes all basic and chemical sub-sector companies listed on the Indonesia Stock Exchange (IDX) for the 2014-2018 period. The sampling technique uses purposive sampling technique. Based on predetermined criteria obtained by 10 companies. The type of data used is secondary data obtained from the Indonesia Stock Exchange website. The analytical method used is panel data regression analysis. The results showed that book tax differences had no effect on earnings persistence, operating cash flow had a positive effect on earnings persistence, the level of debt had no effect on earnings persistence and company size had no effect on earnings persistence.

Earnings Management and Different Tax Book To Explain Earnings Persistency

The study aims to test the direct and indirect effects of earnings management on earnings persistence through different tax books. Opportunistic earnings management results can reduce persistence of accruals. A decrease in accrual persistence will reduce earnings persistence. Different book tax variable was added as an alternative explanation. Earnings management can increase the book tax different reported by the company. A high tax different book can also reduce earnings persistence. A high tax different book is a signal of poor earnings quality. The population of this study is companies listed on the Indonesia Stock Exchange. The sample of this research is manufacturing companies listed on the Indonesia Stock Exchange in 2012-2018. Data analysis methods used in this study were descriptive statistics and path analysis. The path analysis results prove that there is an indirect effect of earnings management on earnings persistence through different tax books. The results of the study prove that there is no direct influence of earnings management on earnings persistence.Keywords: Book Tax Different; Earnings Management; Earnings Persistency.

Effect of Tax Planning on Firm Value of Quoted Consumer Goods Manufacturing Firms in Nigeria

This study determined the effect of tax planning on firm value in quoted consumer goods manufacturing firms in Nigeria. The specific objectives are to: Determine the effect of Effective Tax Rate (ETR) on firm value of Nigerian consumer goods manufacturing companies; Ascertain the effect of Book Tax Differences (BTDs) on the firm value of Nigerian consumer goods manufacturing companies. Ex-post facto research design was adopted for the study. A sample size 21 of firms was selected based on availability of the financial statement of the selected firms from the population of all the non-financial quoted on the Nigeria Stock Exchange. Data for the study will be obtained from annual published financial of the non-financial covering a period of ten years from 2009-2018. Ordinary lease square regression was used to test the three formulated hypotheses with the aid of E-View 9.0. This study found that Effective tax rate (ETR) to impact negatively on firm value, but this impact was statistically significant. However, the study found that, book tax difference (BTD); impact positively on firm value, but this impact was not statistically significant. The study therefore recommended among others that since the influence of effective tax rate is statistically significant and so, should be used as a determinant of firm value in Nigeria. Therefore on the basis of efficient use of tax rate to generate growth should be encouraged.

Perencanaan Pajak dan Book Tax Differences terhadap Persistensi Laba dengan Variabel Moderating Kualitas Laba

This study aims to analyze and find evidence of the effect of tax planning and book tax differences on earnings persistence with earnings quality as moderating variable. The data used is secondary data obtained from the financial statements of manufacturing companies listed on the Indonesian Stock Exchange for 4 years; namely 2014-2017 selected by purposive sampling method. This analytical method used to test the hypothesis in this study is multiple regression analysis.The results of this study indicate that the tax planning variable has a negative influence on earnings persistence. This is because tax planning is used to apply discretion policy of accounting in reducing company profit so it will reduce tax amount. Contra effect of tax planning causes low earnings persistence The company conducts tax planning to minimize the tax burden that is borne by companies that have a long-term focus so that profits can reflect future earnings (sustainable earnings). Whereas book tax differences do not have an influence on earnings persistence, this is possible because income and costs that are adjusted in fiscal reconciliation do not affect future earnings revisions. Lastly, earnings quality does not strengthen tax planning and book tax differences toward earnings persistence.

The effect of corporate social responsibility disclosure and corporate governance on aggressive tax action

This study aims to analyze the effect of corporate social responsibility disclosure and corporate governance on aggressive tax action. This study analyzes corporate social responsibility disclosure based on Global Reporting Initiative (GRI), corporate governance analysis using ASEAN Corporate Governance Scorecard and measurement of aggressive tax action by using abnormal book tax difference (ABTD). It was conducted using secondary data in the form of annual reports and financial statements of companies listed on the Indonesia Stock Exchange in 2012- 2014. Sampling was done by purposive sampling, with nonprobability method. The sample was determined based on companies disclosing corporate social responsibility in accordance with content analysis on GRI4. The data were analyzed using regression analysis for testing the research model. It shows that the disclosure of corporate social responsibility negatively affects aggressive tax action. It also shows that corporate governance through corporate boards can reduce aggressive tax action, while the audit committee and internal audit have small effect on the tendency of aggressive tax action. This means the government can strengthen and enforce policies related to social responsibility and corporate governance to prevent tax aggressive behavior by companies.