Deferred Tax Research Articles

The Case against Eliminating Tax Deferral to Help Social Security

The Case against Eliminating Tax Deferral to Help Social Security

Pengaruh Beban Pajak Tangguhan dan Perencanaan Pajak Performa Keuangan

The purpose of this study was to measure and test the deferred tax expense and tax planning in influencing the financial performance of IDX food and beverage sector companies. Using quantitative methods with financial data from 11 companies and 55 samples for the period 2018 – 2022. By making descriptive analyses, correlation coefficients and determinations, t and F tests are preceded by classical assumption tests. The results of data processing show that the variable deferred tax burden affects financial performance (Sig. 0.005 < 0.05). Meanwhile, financial performance is not affected by tax planning (Sig. 0.256 > 0.05). However, financial performance was affected by deferred tax expense and tax planning (Sig. 0.01 < 0.05)

Pengelolaan Laba dalam Sektor Consumer Non-Cyclicals: Peran Aset Pajak Tangguhan, Skala Perusahaan, dan Leverage di Bursa Efek Indonesia

This research aims to empirically prove the influence of deferred tax assets, company size and leverage on earnings management. This research was conducted at a Consumer Non-Cyclical sector company. The research method used is quantitative. The type of data used is secondary in the form of annual financial reports published on the Indonesia Stock Exchange (BEI) for 2018-2022. Samples were collected using purposive sampling. The number of companies used as research samples was 28 companies with a research period of 5 (five) years, so that 140 observation data were obtained. Data processing uses the Eviews 12 Statistical Program by collecting related data then analyzing descriptive statistics of regression model estimates, model suitability tests, classical assumption tests, coefficient of determination (R 2) panel data regression analysis, F statistical tests and t statistical tests, Results The t statistical test for the variable deferred tax assets partially influences earnings management, but company size and leverage partially have no influence on earnings management. F test results: Deferred tax assets, company size and leverage simultaneously influence earnings management.

Pengaruh Deferred Tax Dan Tingkat Utang Terhadap Tax Avoidance Pada Perusahaan Yang Terdaftar Di Indeks Sri-Kehati 2021-2023

The aim of this research is to find the effect of deferred taxes and debt ratios on tax avoidance in companies listed on the SRI-KEHATI Index on the Indonesia Stock Exchange throughout the period 2021 to 2023. This research uses descriptive methodology with a quantitative approach. This research data comes from secondary data sources, specifically obtained from www.idx.com. The study encompasses a population of 25 companies, selected through purposive sampling methodology, This leads to the selection of a sample comprising 20 companies observed over a span of three years period (2021-2023) with 60 qualifying data points. Data analysis employs Utilizing descriptive statistical tests in conjunction with classical assumption tests, the study employs multiple linear regression analysis, Conducting hypothesis testing through the utilization of F and t tests, along with determination coefficient assessments.The findings from this study suggest that, in partial (t) terms, the Deferred Tax variable does not exert a statistically significant impact on tax avoidance. Furthermore, The Debt Ratio variable does not show any influence on Tax Avoidance. Simultaneously (F), both Deferred Taxes and Debt Levels together do not have a statistically significant effect on tax avoidance in companies listed on the SRI-KEHATI index. Keywords: deferred tax, debt ratio, tax avoidance

Impact of tax incentives on the development of the flower industry

Tax incentives are government policies that take the form of exclusions, credits, preferential rates and tax deferrals, manifested through measures such as temporary tax exemptions, specific deductions and tariff reductions, its purpose is to promote activities that the government considers beneficial for economic development, technological innovation, job creation or improvement of the business environment. In this sense, the present study seeks to answer the following question: how do tax incentives affect the Latin American floriculture industry, with the objective of analyzing the impact of tax incentives on the development of the floriculture industry in Latin America Spain and Kenya, exploring the different perspectives and effects on economic growth. After an exhaustive analysis, it is concluded that tax incentives in the Latin American floriculture industry have had a positive impact by stimulating investment, fostering economic growth, generating employment and consolidating the position of the countries in the global market for floricultural products.

PROBLEMS OF PRESENTING INFORMATION ABOUT DEFERRED TAXES

Currently, accounting standards in the area of income tax accounting continue to be vague and unspecific. In this connection, this paper investigates the key aspects of the presentation of deferred tax information in accordance with the rules of modern accounting standards and theoretical provisions. The article describes the peculiarities of deferred tax classification in the balance sheet and the profit and loss statement. An attempt is made to explain the effect of restoration of deferred tax liabilities. The conclusion is made that in scientific literature the essence of income taxes still remains undisclosed and that because of this the developers of accounting standards are deprived of an opportunity to compile them adequately. The example of the use of provisions of IAS 12 «Income Taxes» in order to conceal important economic information is given. American and international experience in terms of indicating the sources of recovery of the value of deferred tax assets is compared. It has been defined that the Russian standard in the field of accounting of income taxes is not transparent in the part of representation of the information on deferred taxes. In the conclusion the directions of improvement of accounting legislation are presented.

Deferred taxes in financial institutions: A review of empirical research and the role of tax effects in regulatory capital. Part 2

Subject. This article examines the industry practices of the regulation of deferred taxes in financial institutions. Objectives. The article aims to analyze the significance of deferred taxes for financial institutions (banks, insurance organizations) and determine the role of tax effects in regulatory capital. Methods. The research is speculative. For the study, I used the dialectical method of scientific knowledge, the method of collecting theoretical and regulatory information, the method of formalization, as well as analysis, synthesis, observation, and comparison. Results. The article finds that the preventive nature of the accounting revaluation of deferred tax assets controls the probability of their recovery at the expense of future taxable profits, and therefore they should be included in the regulatory capital. It determines that a full reversal of the active deferred tax position is possible if the accounting assets generate income with the profitability necessary to cover the deductible temporary differences in excess of the balance sheet valuation of the assets. Conclusions and Relevance. At present, the theoretical basis of deferred taxation continues to remain undisclosed. Deferred taxes are an artificial information construct that refines the measurement of assets at fair value. Deferred taxes alone are not able to generate cash flow, they reconcile the tax flow with the financial flow in relation to the fair value of assets in order to show how much value the assets will generate taking into account the current tax situation. The results of the study can be useful to practitioners in the field of deferred tax accounting and banking management, as well as analysts and researchers whose activities are focused on accounting, taxation, and other persons concerned who study the theoretical and financial aspects of deferred taxes.

ASSIGNED ASSET VALUE AND INVESTMENT TAX DEDUCTION: DEFERRED TAX ACCOUNTING PROBLEMS

The paper deals with methodological and theoretical aspects of accounting for investment tax deduction and assigned value of the asset in terms of rules and regulations of international standards and national standards of the United States (US GAAP). The problem of imperfection of IAS 12 «Income Taxes» in the part of accounting of deferred taxes at initial recognition of the asset is raised. The peculiarities of valuation at fair value when tax effects are included in the amortized value of the asset are disclosed. The calculation of the assigned value of the asset and deferred tax for investment tax deduction, as well as their accounting on accounting accounts is substantiated. The results of the work can be useful in improving national accounting standards and developing corporate accounting policies, as well as in the framework of related theoretical research. As promising directions in the field of the research topic can be highlighted a comparative analysis of the Russian investment tax deduction with the American investment tax credit; and methodological approaches to accounting for the latter in the U.S. in the 1960s.

Strategy creation behaviour and “last gasp” digitalization as predictors of sales performance and cash flow

PurposeAlthough recent literature has examined diverse measures adopted by SMEs to navigate the COVID-19 turbulence, there is a shortage of evidence on how crisis-time strategy creation behaviour and digitalization activities increase (1) sales and (2) cash flow. Thus, predicated on a novel strategy creation perspective, this inquiry aims to investigate the crisis behaviour, sales and cash flow performance of 528 SMEs in Morocco.Design/methodology/approachNovel links between (1) aggregate wage cuts, (2) variable operating hours, (3) deferred payment to suppliers, (4) deferred payment to tax authorities and (5) sales performance are developed and tested. A further link between sales performance and cash flow is also examined and the analysis is conducted using a non-linear structural equation modelling technique.FindingsWhile there is a significant association between strategy creation behaviours and sales performance, only variable operating hours have a positive effect. Also, sales performance increases cash flow and this relationship is substantially strengthened by e-commerce digitalization and innovation.Originality/valueTheoretically, to the best of the authors’ knowledge, this is one of the first inquiries to espouse the strategy creation view to explain SMEs' crisis-time behaviour and digitalization. For practical purposes, to supplement Moroccan SMEs' propensity to seek tax deferrals, it is argued that debt and equity support measures are also needed to boost sales performance and cash flow.

Deferred taxes in financial institutions: A review of empirical research and the role of tax effects in regulatory capital. Part 1

Subject. This article examines the industry practices of the regulation of deferred taxes in financial institutions. Objectives. The article aims to analyze the significance of deferred taxes for financial institutions (banks, insurance organizations) and determine the role of tax effects in regulatory capital. Methods. The research is speculative. For the study, I used the dialectical method of scientific knowledge, the method of collecting theoretical and regulatory information, the method of formalization, as well as analysis, synthesis, observation, and comparison. Results. The article finds that the preventive nature of the accounting revaluation of deferred tax assets controls the probability of their recovery at the expense of future taxable profits, and therefore they should be included in the regulatory capital. It determines that a full reversal of the active deferred tax position is possible if the accounting assets generate income with the profitability necessary to cover the deductible temporary differences in excess of the balance sheet valuation of the assets. Conclusions and Relevance. At present, the theoretical basis of deferred taxation continues to remain undisclosed. Deferred taxes are an artificial information construct that refines the measurement of assets at fair value. Deferred taxes alone are not able to generate cash flow, they reconcile the tax flow with the financial flow in relation to the fair value of assets in order to show how much value the assets will generate taking into account the current tax situation. The results of the study can be useful to practitioners in the field of deferred tax accounting and banking management, as well as analysts and researchers whose activities are focused on accounting, taxation, and other persons concerned who study the theoretical and financial aspects of deferred taxes.

Fiscal support and banks’ loan loss provisions during the COVID-19 crisis

We study the effect of governments’ fiscal support on banks’ loan loss provisioning during the COVID-19 pandemic. In addition, we decompose fiscal support into direct support and liquidity support to examine the effect of different types of support measures on banks’ loan loss provisioning. Direct support generally refers to cash transfers, tax reliefs, and tax deferrals, while liquidity support generally refers to government-backed loans and equity injections. We find that direct support reduced banks’ loan portfolio risk whereas liquidity support did not. Moreover, we find the effect goes beyond a macroeconomic stabilization effect, suggesting that direct support directly contributed to mitigating banks’ loan portfolio risk during the pandemic. Our results are robust to controlling for other policy interventions, alternative model specifications, and an instrumental variable approach. We further discuss the policy implications of our analysis.

Pengaruh Employee Stock Ownership Program, Leverage, Ukuran Perusahaan, GCG, Nilai Tukar Dan Pajak Tangguhan Terhadap Kinerja Keuangan Pada Perusahaan Properti Dan Real Estate Yang Listing Di BEI Periode 2016-2020

This research was conducted to analyze the effect of the ESOP Employee Stock Ownership Program, Leverage, Company Size, GCG, Exchange Rates and Deferred Taxes on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period. Quantitative approach is the method of this research. The research population totaled 65 Property and Real Estate Companies listed on the IDX for the 2016-2020 period. Using purposive sampling for sampling, the sample in the study amounted to 9 companies. The results show that research on ESOP, Leverage, Company Size, GCG, Exchange Rates and Deferred Taxes have an effect on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period. Partial test results show that the Employee Stock Ownership Program (ESOP) has an effect on the financial performance of property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that leverage has no effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that company size has an effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that GCG has no effect on the financial performance of property and real estate companies listed on the IDX for the 2016-2020 period. Partial test results show that exchange rates have no effect on financial performance in property and real estate companies listed on the IDX for the 2016-2020 period. The results of the partial test show that Deferred Tax has no effect on the Financial Performance of Property and Real Estate Companies Listing on the IDX for the 2016-2020 period.
 Keywords: ESOP, Leverage, Company Size, GCG, Exchange Rate, Deferred Tax

The Influence of Managerial Ownership, Institutional Ownership and Deferred Tax Burden on Earnings Management in Food and Beverage Companies on the Indonesia Stock Exchange 2017 – 2021

This study aims to analyze the Effect of Managerial Ownership, Institutional Ownership and Deferred Tax Burden on Profit Management in Food and Beverage Companies on the Indonesia Stock Exchange 2017 – 2021. This study used a quantitative approach in the form of financial statements of food and beverage companies listed on the Indonesia Stock Exchange from 2017 to 2021. The sampling technique used in this study used a purposive sampling approach, the number of samples used in this study were 90 samples. The results of this study indicate that managerial ownership has no effect on earnings management, institutional ownership has an effect on earnings management, deferred tax expense has an effect on earnings management, simultaneously the variables managerial ownership, institutional ownership and deferred tax expense have an effect on earnings management. The limitations in this study are that the research object only focuses on food and beverage sector companies that are listed on the Indonesia Stock Exchange from 2017 to 2021. This study uses the dependent variable, namely earnings management and independent variables, namely Managerial Ownership, Institutional Ownership and Deferred Tax Expenses As material for consideration in making decisions related to earnings management and can be used as a reference for companies in determining policies related to financial reports regarding earnings management practices. This Paper is Original Research paper.

Return Saham Sebagai Respon Dari Perubahan Tarif PPh Badan Dengan Liabilitas Pajak Tangguhan Sebagai Variabel Intervening

This research aims to determine and analyze the affect of changes in company tax rate on Stock Return using deferred tax expense as intervening variable at Property, Real Estate and Construction Companies listed in Indonesia Stock Exchange period 2018-2021. The population in this research amounted to 64 companies.The sampling method used purposive sampling method and obtained 13 sample. The data analysis technique used is quantitative analysis using the classic assumption test and path analysis with the IBM SPSS 25. The result of analysis shows that simultaneously changes in company tax rate no significant effect on deferred tax expense. Partially, changes in company tax rate no significant effect on deferred tax expense. While changes in company tax rate and using deferred tax expense rate no significant effect on stock return. Partially changes in company tax rate and using deferred tax expense rate no significant effect on stock return. The results of the track analysis show that the existence of deferred tax expense rate variables is able to intervening influence of deferred tax expense to stock return.

DETEKSI MANAJEMEN LABA: PERENCANAAN PAJAK, BEBAN PAJAK TANGGUHAN, ASET PAJAK TANGGUHAN, KEPEMILIKAN MANAJERIAL DAN FREE CASH FLOW (Studi Empiris Perusahaan Manufaktur di Indonesia)

This study aims to identify profit management in manufacturing companies listed on the Indonesia Stock Exchange based on the factors that influence it, namely: tax planning, deferred tax burden, deferred tax assets, managerial ownership, and free cash flow. Profit management is measured using a profit distribution approach. The sampling method uses purposive sampling with a research period of 2018 to 2020. The relationship and or influence between variables is explained using Multiple Linear Regression Analysis. The results showed that the variables of tax planning, managerial ownership and free cash flow had a positive effect on profit management. Meanwhile, variable deferred tax burdens and deferred tax assets have an insignificant negative effect on profit management.

Связь отложенных налогов с начислениями по текущему налогу на прибыль

Introduction. Accounting standards currently apply the principle imposing a 100 % probability of the existence of tax cash outflows on balance sheet deferred tax liabilities. However, this relationship has not been proven either theoretically or empirically in the accounting research literature, which determines the relevance of this study. Purpose. The paper aims at testing the hypothesis which states that the reversal of deferred tax liabilities always increases income tax accruals. In order to achieve this goal, among other things, the relationship between the reversal of deferred tax assets and the change in current tax accruals was examined. Materials and Methods. Traditional statistical analysis and standard techniques of econometric analysis were used – linear regressions and correlation matrices were constructed. Hypothesis was tested in the Russian organizations which reported under the 2012–2018 Russian accounting rules. Results. At the “assets” scaling base, a 1 % increase in taxable temporary differences on average reduces taxable profit of the Russian organizations by almost 60 % (with a one-year lag – by 43 %). Restoration of deductible temporary differences at the “accounting profit before taxation” scaling base by 1 % on average leads to a 53.7 % decrease (with a one-year lag – by 67.8 %) in the taxable profit of the Russian organizations. Conclusion. Recovery of an active deferred tax position has a more tangible impact on the change in taxable profit than reversal of a passive position. The developed methodological schemes assess the deferred tax position of companies, as well as compare them with each other by the level of accruals of profit tax and determine the reasons for their relative overstatement or understatement. Theoretical significance consists in the refutation of the principle laid down in paragraph 16 of IAS 12 Income Taxes, which indicates the relevance of clarifying the economic content of deferred taxes in accounting standards.

The COVID-19 pandemic and financial markets in Central Europe: Macroeconomic measures and international policy spillovers

This paper investigates the effects of macroeconomic policy announcements on financial markets in three Central European economies: Czechia, Hungary, and Poland (CE–3). We focus on the unprecedented stabilisation policies implemented from March to December 2020 during the COVID-19 pandemic, including unconventional monetary measures and large stimulus programs. Detailed categories of monetary and fiscal measures are introduced into vector autoregressions with exogenous regressors and dynamic conditional correlations, which we estimate using daily data. This allows us to control for policy spillovers from abroad, as well as global risk factors and pandemic-related variables. We find that, in general, macroeconomic policy measures implemented in the CE–3 countries played an important role in stabilising financial markets during the pandemic. We uncover several notable patterns in the reaction of markets to anti-crisis measures across the region. The impact of the monetary policy announcements on 10-year sovereign bond yields was more substantial than on stock market returns and exchange rate returns. The communication of the unconventional tools proved effective in lowering the bond yields. Interestingly, we document that the effects of non-standard measures for some variables, such as the exchange rate, can be qualitatively different from those resulting from a conventional monetary expansion. Even though the domestic monetary events became more important than the fiscal ones, the latter proved relevant for financial market returns, especially when large-scale immediate fiscal measures and tax deferrals were introduced. We also show that the CE–3 economies were subject to the cross-border transmission of policy announcement effects from the Euro Area and the US, although the magnitude of these effects was smaller than expected and varied across the CE–3 countries.

PENGARUH PERENCANAAN PAJAK DAN BEBAN PAJAK TANGGUHAN TERHADAP KINERJA KEUANGAN (Studi Kasus Pada Perusahaan Pertambangan Sub Sektor Batubara Yang Terdaftar di Bursa Efek Indonesia Tahun 2016-2020)

This study aims to determine the effect of Tax Planning and Deferred Tax Expense on Financial Performance in Coal Sub-Sector Mining Companies Listed on the Indonesia Stock Exchange. Taxes are one of the important sources of state revenue to finance state development. This study also discusses deferred tax and tax planning that will be carried out by the company in generating profits by looking at the financial performance of the company. The research period used is the 2016-2020 period). The type of research used in this research is quantitative with secondary data method. The variable for determining the sample of this study used purposive sampling method and based on the criteria obtained 40 company data and analyzed using panel data regression technique with random effects model to test the hypothesis. The dependent variable in this study is Financial Performance, while the independent variable in this study is Tax Planning and Deferred Tax Expense. Hypothesis testing in this study uses multiple linear regression using Eviews version 10 and Eviews version 12. The results of this study indicate that tax planning and deferred tax expense jointly affect the financial performance of the coal mining sub-sector listed on the Indonesia Stock Exchange in 2016 -2020.

Misuse of Deferred Taxes in Portugal

Financial transparency is essential for stakeholders to make decisions, ensuring a correct amount of tax is paid to the state. Many companies have opted for the recognition of deferred tax assets to present a different result, but there is scant literature. This study investigates the impact of recognizing deferred tax assets and their contribution to earnings manipulation, together with the effect of the 2008 global financial crisis. Using data from 29 companies listed on the stock exchange and headquartered in Portugal between 2007 and 2012, formalize correlation tests and a linear regression model were used, concluding that more indebted companies tend to recognize more deferred tax assets, paying less tax to the state and that for the sample size and study period, it was not possible to conclude the impact of the 2008 financial crisis.

Reviews of Tax Planning in Indonesia: The Implementation & Analytical Approach

The Indonesian government to meet its expenditure needs, requires a definite source of funds every year. Sources of funds for the Indonesian government, among others, are obtained through non-tax revenues and tax revenues. The calculation of income tax in the year for taxpayers is based on the financial statements. Fiscal profit or loss is prepared based on commercial profit or loss which has been adjusted to tax regulations through reconciliation, the reconciliation will result in fiscal improvement. The use of the selection method for calculating income tax article 21 for employees can be one of the applications of taxation methods permitted by the Directorate General of Taxes which can be useful in saving from the tax burden borne by the company. The Company recognizes deferred tax assets only to the extent that it is probable that sufficient taxable profit will be available so that the deductible temporary differences can be utilized (PSAK No. 46, par. 24), or if sufficient taxable profit will be available to compensate the balance. Compensable fiscal loss.