Download or read book How Do Disclosures of Tax Uncertainty to Tax Authorities Affect Reporting Decisions written by Erin Marie Towery and published by . This book was released on 2013 with total page 150 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study exploits the recently-issued Uncertain Tax Position Statement (Schedule UTP) to examine the effect of mandatory disclosures of tax uncertainty to tax authorities on firms' reporting decisions. Schedule UTP requires firms to disclose federal income tax positions to the Internal Revenue Service that have been classified as 'uncertain' for financial reporting purposes. In showing how Schedule UTP disclosure requirements affect private and public reporting decisions, I provide insights into the usefulness of these disclosures. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. These findings suggest some firms changed their financial reporting for uncertain tax positions to avoid Schedule UTP reporting requirements without changing the underlying positions. The effect is concentrated among firms with greater business complexity, whose business operations facilitate tax planning strategies that are more difficult for the IRS to identify. More broadly, my results imply private disclosures of tax uncertainty can affect the informativeness of public disclosures of tax uncertainty.
Download or read book The Effect of Mandatory Financial Statement Disclosures of Tax Uncertainty on Tax Reporting and Collections written by Sanjay Gupta and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates the effect of accounting measurement and disclosure requirements on multistate income tax avoidance. The proliferation of sophisticated state tax planning techniques combined with the complexity of varying state tax regimes make multistate taxation an area rampant with uncertainty. The accounting standards contained in FASB Interpretation No. 48 (FIN 48) require firms to record and disclose liabilities for uncertain income tax benefits based on a more-likely-than-not merit threshold of each tax position, assuming tax authorities have full information. Theoretical work and initial practitioner claims suggested that the accounting standards would increase reported tax expense and tax payments. Consistent with this, we find that both firm-level state income tax expense and aggregate state-level income tax collections increased surrounding adoption of FIN 48, providing evidence of the association between mandatory financial reporting disclosures and tax compliance behavior.
Download or read book The Effect of Increased Private Tax Disclosure on the Relevance of Reserves for Uncertain Tax Positions written by Adam Manlove and published by . This book was released on 2022 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines whether private disclosure to the tax authority improves the relevance of publicly disclosed reserves for uncertain tax positions. Schedule UTP increases private disclosure to the IRS about uncertain federal tax positions for which companies accrue and publicly disclose financial statement reserves. Prior to Schedule UTP, reserves for uncertain tax positions were overstated and lacked predictive ability for future tax cash flows. Schedule UTP increases regulatory scrutiny of tax positions underpinning the financial statement reserves and improves the IRS's detection of uncertain tax positions by providing the IRS with superior information relative to financial statements disclosures. Based on theory that managers improve financial reporting in anticipation of greater scrutiny, I predict and find that Schedule UTP improves the predictive ability of financial statement reserves for uncertain tax positions for future settlements with tax authorities. Although the objective of Schedule UTP is to improve IRS enforcement, my results are consistent with its implementation creating a positive externality in the form of more relevant accounting for uncertain tax positions. These findings have implications for the effect of private disclosure on managers' financial reporting behavior. As tax authorities continue to demand expanded private disclosures to improve tax compliance, this study provides timely evidence of how such disclosures affect accounting quality.
Download or read book Unintended Consequences of Linking Tax Return Disclosures to Financial Reporting for Income Taxes written by Erin Towery and published by . This book was released on 2017 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study exploits the implementation of IRS Schedule UTP to examine how linking tax return disclosures to financial reporting for income taxes affects firms' reporting decisions. Using confidential tax return data and public financial statement data, I find that after imposition of Schedule UTP reporting requirements, firms report lower financial reporting reserves for uncertain income tax positions, but do not claim fewer income tax benefits on their federal tax returns. The reduction in reserves is concentrated among multinational firms and firms with larger reserves prior to Schedule UTP. These findings suggest some firms changed their financial reporting for uncertain tax positions to avoid Schedule UTP reporting requirements without changing the underlying positions. In contrast with prior studies, this evidence represents a permanent rather than a temporary tax-induced reporting change. My results imply that linking tax return disclosures to financial reporting can have unintended effects on firms' reporting decisions.
Download or read book Pre empting Disclosure Firms Decisions Prior to FIN 48 written by Jennifer Blouin and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: FIN 48, Accounting for Uncertainty in Income Taxes (FASB 2006), requires firms to disclose tax reserves and to record changes in tax reserves at adoption of FIN 48 as cumulative effect adjustments in stockholders' equity. We predict that between the enactment and adoption of FIN 48, relative to historical levels, firms settle disputes more often to potentially decrease visibility to the IRS and release reserves more often to reduce scrutiny and increase earnings (as opposed to retained earnings). We analyze 2005 and 2006 10-Qs and 10-Ks for the 100 largest nonfinancial, nonutility firms followed by analysts. Between enactment and adoption of FIN 48, relative to historical levels, firms report more settlements with tax authorities and release reserves more frequently. In addition, firms with higher IRS deficiencies are more likely to settle disputes. Between enactment and adoption of FIN 48, firms increased earnings by releasing $4.4 billion of tax reserves, nearly equaling the $4.5 billion released at adoption.
Download or read book An Investigation of Tax Risk Disclosures and Estimation Uncertainty in Securities and Exchange Commission Annual Reports written by Zhuoli Zhou Axelton and published by . This book was released on 2021 with total page 131 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation investigates the incremental effects of uncertain disclosure narratives in annual filings of public companies. In the first essay, I investigate the effects of Form 10-K qualitative tax risk disclosures on the prices of syndicated loans. I find that firms with more extensive tax risk disclosures enjoy lower loan spreads. This effect is more pronounced among firms with higher IRS audit risk and information risk. I also find that tax risk disclosures convey managements' ability to manage tax risks, as evidenced by lower future tax volatility following the initiation of extensive tax risk disclosures. Consistent with tax risk disclosures enhancing management credibility and providing greater assurance to lenders, I document that these disclosures attenuate the association between tax risk and the cost of debt. My second essay focuses on auditor decisions related to estimation uncertainty in financial reporting. I construct a composite measure of estimation uncertainty that captures the length, the number of estimation-related words, and topical coverage in the critical accounting policies and estimates (CAPEs) portion of Form 10-K filings. I validate this measure by demonstrating its association with earnings attributes linked to measurement uncertainty and lower accrual reliability. Relying on this measure, I investigate the extent that auditors incorporate estimation uncertainty reflected in CAPEs in their risk assessments. I find that auditors charge higher audit fees, take longer to issue audit reports, and are more likely to issue modified audit opinions when CAPE estimation uncertainty is higher. These results are robust to entropy balancing, year-to-year change analysis, and controls for firm fixed effects. When I focus on tax and goodwill estimation uncertainty, I document that estimation uncertainty reflected in CAPEs has incremental effects beyond existing measures of estimates reported in financial statements. I demonstrate the positive association between CAPE estimation uncertainty and the textual properties of critical audit matter (CAM) disclosures, which supports the view that auditors incorporate estimation uncertainty reflected in CAPEs in their risk assessments.
Download or read book International VAT GST Guidelines written by and published by . This book was released on 2017 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Value Added Tax (VAT; also known as Goods and Services Tax, under the acronym GST in a number of OECD countries) has become a major source of revenue for governments around the world. Some 165 countries operated a VAT at the time of the completion of the International VAT/GST Guidelines in 2016, more than twice as many as 25 years before. As VAT continued to spread across the world, international trade in goods and services has also expanded rapidly in an increasingly globalised economy. One consequence of these developments has been the greater interaction between VAT systems, along with growing risks of double taxation and unintended non-taxation in the absence of international VAT co-ordination. The International VAT/GST Guidelines now present a set of internationally agreed standards and recommended approaches to address the issues that arise from the uncoordinated application of national VAT systems in the context of international trade. They focus in particular on trade in services and intangibles, which poses increasingly important challenges for the design and operation of VAT systems worldwide. They notably include the recommended principles and mechanisms to address the challenges for the collection of VAT on cross-border sales of digital products that had been identified in the context of the OECD/G20 Project on Base and Erosion and Profit Shifting (the BEPS Project). These Guidelines were adopted as a Recommendation by the Council of the OECD in September 2016.
Download or read book Why People Pay Taxes written by Joel Slemrod and published by . This book was released on 1992 with total page 361 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experts discuss strategies for curtailing tax evasion
Download or read book The Psychology of Money and Public Finance written by G. Schmölders and published by Springer. This book was released on 2006-09-05 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book features the main papers of Günter Schmölders (1903-1991), a pioneer in economic psychology, for the first time in English. Schmölders' research on 'fiscal psychology' is of particular and lasting interest, impacting greatly on continental economics.
Download or read book Fiscal Regimes for Extractive Industries Design and Implementation written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2012-08-16 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: Better designed and implemented fiscal regimes for oil, gas, and mining can make a substantial contribution to the revenue needs of many developing countries while ensuring an attractive return for investors, according to a new policy paper from the International Monetary Fund. Revenues from extractive industries (EIs) have major macroeconomic implications. The EIs account for over half of government revenues in many petroleum-rich countries, and for over 20 percent in mining countries. About one-third of IMF member countries find (or could find) resource revenues “macro-critical” – especially with large numbers of recent new discoveries and planned oil, gas, and mining developments. IMF policy advice and technical assistance in the field has massively expanded in recent years – driven by demand from member countries and supported by increased donor finance. The paper sets out the analytical framework underpinning, and key elements of, the country-specific advice given. Also available in Arabic: ????? ??????? ?????? ???????? ???????????: ??????? ???????? Also available in French: Régimes fiscaux des industries extractives: conception et application Also available in Spanish: Regímenes fiscales de las industrias extractivas: Diseño y aplicación
Download or read book Designing Interest and Tax Penalty Regimes written by Mr.Christophe J Waerzeggers and published by International Monetary Fund. This book was released on 2019-03-19 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: Designing Interest and Tax Penalty Regimes
Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.
Download or read book Government Auditing Standards 2018 Revision written by United States Government Accountability Office and published by Lulu.com. This book was released on 2019-03-24 with total page 234 pages. Available in PDF, EPUB and Kindle. Book excerpt: Audits provide essential accountability and transparency over government programs. Given the current challenges facing governments and their programs, the oversight provided through auditing is more critical than ever. Government auditing provides the objective analysis and information needed to make the decisions necessary to help create a better future. The professional standards presented in this 2018 revision of Government Auditing Standards (known as the Yellow Book) provide a framework for performing high-quality audit work with competence, integrity, objectivity, and independence to provide accountability and to help improve government operations and services. These standards, commonly referred to as generally accepted government auditing standards (GAGAS), provide the foundation for government auditors to lead by example in the areas of independence, transparency, accountability, and quality through the audit process. This revision contains major changes from, and supersedes, the 2011 revision.
Download or read book International GAAP 2020 written by Ernst & Young LLP and published by John Wiley & Sons. This book was released on 2020-02-25 with total page 5440 pages. Available in PDF, EPUB and Kindle. Book excerpt: International GAAP 2020 is a comprehensive guide to interpreting and implementing International Financial Reporting Standards (IFRS), setting IFRS in a relevant business context, and providing insights into how complex practical issues should be resolved in the real world of global financial reporting. This book is an essential tool for anyone applying, auditing, interpreting, regulating, studying, or teaching IFRS. Written by financial reporting professionals from around the world, this guide to reporting under IFRS provides a global perspective, clearly explaining complex technical accounting issues and setting IFRS in a practical context. Numerous worked examples and hundreds of illustrations from the published financial reports of major listed companies from around the world are included. The 2020 edition has been fully revised and updated with information on the latest IFRS changes and current issues.
Download or read book Principles of tax policy written by Great Britain: Parliament: House of Commons: Treasury Committee and published by The Stationery Office. This book was released on 2011-03-15 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Treasury Committee welcomes the Government's commitment to a new approach to tax policy making, designed to support its ambition for a more predictable, stable and simple system. But the Government has not done enough to set out the principles underlying that policy. The Committee attempts to identify these principles and considers how tax policy can best support growth. A tax system which is theoretically structured to promote growth will not succeed if businesses are faced with constant change, or if the inefficiency of collection outweighs any benefits. The report warns that a tax system which is felt to be fundamentally unfair will quickly lose political support. It also notes that the scope for tax arbitrage has grown substantially over the last quarter of a century and globalisation is likely to increase it further. A tax system which is not competitive by international standards will not support growth. Competitiveness is also not a simple matter of tax rates, although they have a bearing, but of the stability of the system as a whole. The report recommends that tax policy should be measured by reference to the following principles. Tax policy should: be fair; support growth and encourage competition; provide certainty; provide stability; be practicable, so that a person's tax liability should be easy to calculate and straightforward and cheap to collect; be coherent - new provisions should complement the existing tax system, not conflict with it.
Download or read book Current Challenges in Revenue Mobilization Improving Tax Compliance written by International Monetary Fund and published by International Monetary Fund. This book was released on 2015-01-29 with total page 81 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper addresses core challenges that all tax administrations face in dealing with noncompliance—which are now receiving renewed attention. Long a priority in developing countries, assuring strong compliance has acquired greater priority in countries facing intensified revenue needs, and is critical for fairness and statebuilding. Series: Policy Papers
