ACCOUNTING & FINANCE CORNER
Thursday February 27th 2020

Book Tax Gap… – Dwi Martani

Book Tax Gap... - Dwi Martani

Abstract

This research investigates factorc affecting the book tax gap in Indonesia. Indonesian tax law limit the discretion used by management in calculating the income, therefore, the difference between accounting income and taxable income is considered to be a potential sign of earnings management. We analyze several factors that-based on previos research-affect earnings management practice, such as company’s size, level of leverage, level of capital intensity, level of inventory intensity, number of affiliation, and profitability. We also use other proxy of earnings management, such as Total Accruals and the existence of Tax Assessment Letter from Tax Officials. Using the 10 years’ data from 1999-2008, we find that factors affecting boox tax gap in Indonesia is total accrual and size. This shows that menagement discretion that reflected in total accruals will affect the level of company’s book tax gap, along with the sizeof the company. This means the bigger the size of a companyin Indonesia, the better the monitoring conducted that lead to lower book tax gap. this finding will give insight to accounting researchers towards the earnings management practice and the use of book tax gap in developing country.

Keywords: tax, book tax gap, earnings management, accrual, Indonesia

Leave a Comment

Latest Topics

Diskusi PSAK 72 Pendapatan dari Kontrak Pelanggan

Tahun 2020 telah lewat dua bulan, Entitas seharusnya sudah menerapkan PSAK 72 dalam mengakui, mengukur, menyajikan dan [Read More]

Perpajakan 2

Tidak terasa semester berganti, sehingga mahasiswa akan berganti dan materi yang diajarkan juga dimodifikasi. Hanya [Read More]

UMKM DI ERA 4.0

Di era digital 4.0 seluruh aktivitas akan terpengaruh termasuk juga bisnis UMKM. Era digital 4.0 pada satu sisi adalah [Read More]

Overview PSAK

Berikut materi overview PSAK. Untuk contoh soal dapat mengambil dari materi di post-post sebelumnya.   SOAL CP_SAK [Read More]

Instrumen Keuangan

Berikut materi terkait instrumen keuangan PSAK 60 pengungkapan instrumen keuangan 20122017 [Read More]

Popular Topics

Dokumen Publikasi puisi

Pages

Insider

Archives