Please use this identifier to cite or link to this item:
Title: Will a departure from tax-based accounting encourage tax noncompliance? Archival evidence from a transition economy
Author(s): Chan, Koon Hung 
Author(s): Lin, K. Z.
Mo, P. L. L.
Issue Date: 2010
Publisher: Elsevier
Journal: Journal of Accounting and Economics 
Volume: 50
Issue: 1
Start page: 58
End page: 73
We investigate whether a departure from a tax-based accounting system toward the adoption of International Financial Reporting Standards encourages tax noncompliance. We also examine whether such a departure, which weakens book-tax conformity, affects the informativeness of book-tax differences for tax noncompliance. Our evidence suggests that as book-tax conformity decreases, tax noncompliance increases. Although book-tax differences remain informative of tax noncompliance, the informativeness attenuates as book-tax conformity weakens. Additionally, firms with high incentives to inflate book income are more tax compliant than their counterparts after the departure from a tax-based accounting system.
DOI: 10.1016/j.jacceco.2010.02.001
CIHE Affiliated Publication: No
Appears in Collections:BHM Publication

SFX Query Show full item record

Google ScholarTM




Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.