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Author: Russ Hamilton Publisher: ISBN: Category : Languages : en Pages :
Book Description
We examine the effect of high quality information technology (IT) on corporate tax outcomes. Using a measure of IT quality constructed from rankings in InformationWeek magazine, we find that firms with high quality IT are able to achieve both lower and less volatile cash effective tax rates than are other firms. These results suggest that firms with high quality IT are able to avoid more taxes while simultaneously incurring less tax risk compared to firms with lesser IT systems. We also perform mediation analyses to investigate the channels through which high quality IT enables effective tax planning. Results of these tests suggest that the most important driver of our findings is timely, reliable information facilitated by high quality IT. Our study contributes to both the IT and tax literatures by identifying and quantifying the returns to investments in IT in terms of more favorable corporate tax outcomes.
Author: Russ Hamilton Publisher: ISBN: Category : Languages : en Pages :
Book Description
We examine the effect of high quality information technology (IT) on corporate tax outcomes. Using a measure of IT quality constructed from rankings in InformationWeek magazine, we find that firms with high quality IT are able to achieve both lower and less volatile cash effective tax rates than are other firms. These results suggest that firms with high quality IT are able to avoid more taxes while simultaneously incurring less tax risk compared to firms with lesser IT systems. We also perform mediation analyses to investigate the channels through which high quality IT enables effective tax planning. Results of these tests suggest that the most important driver of our findings is timely, reliable information facilitated by high quality IT. Our study contributes to both the IT and tax literatures by identifying and quantifying the returns to investments in IT in terms of more favorable corporate tax outcomes.
Author: Sabrina Chi Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
The complexity and frequent changes of multi-jurisdictional tax requirements generate a demand for a robust supporting information environment. If a firm's information technology (IT) environment is not able to handle these tax complexities, that inability increases the risk of errors in the firm's financial accounting for income taxes and the risk of ineffective tax avoidance strategies. We initially investigate the relation between IT-related material weaknesses (MWs) and tax-related MWs and find that having an IT-related MW is associated with a higher probability of having a tax-related MW. We then examine whether the quality of a firm's IT environment influences its tax avoidance effectiveness. In addition, we find firms that restate their financial statements are more likely to disclose IT-related and tax-related MWs in advance of the year they announce that they must restate. We also show that having an IT-related MW hinders tax avoidance and that firms having a CFO with IT expertise or receiving the Most Admired Knowledge Enterprise award are also positively associated with tax avoidance. Our results are consistent with the idea that when firms have higher quality IT environments, they are more likely to have more effective controls over the tax function and similarly their tax avoidance efforts are more effective.
Author: Alqatan, Ahmad Publisher: IGI Global ISBN: Category : Business & Economics Languages : en Pages : 376
Book Description
Digital era reporting undergoes a seismic shift as automation takes center stage. The transition from manual reporting to real-time automated systems enhances precision and efficiency and reduces errors, empowering decision-makers. However, this era of digital reporting brings forth a new set of challenges, from data security and privacy concerns to the imperative need for robust cybersecurity measures. Impact of Digitalization on Reporting, Tax Avoidance, Accounting, and Green Finance delves into this transformative wave, comprehensively exploring its consequences on these critical domains. The book meticulously dissects both the positive and negative repercussions, encapsulating the challenges and opportunities that arise in this era of digital metamorphosis. Navigating tax avoidance in a digitalized world unveils a complex dynamic. Digitalization, on the one hand, empowers tax authorities to access and analyze vast datasets, making it challenging for businesses to engage in tax evasion. On the other hand, sophisticated digital tools provide fertile ground for corporations to devise intricate tax avoidance schemes. Striking a balance becomes paramount, necessitating regulatory measures and international cooperation while addressing ethical dimensions in leveraging technology for tax strategies. The book offers a nuanced understanding of the intricate relationship between digitalization and these critical domains, from business professionals and financial analysts to regulatory bodies and sustainability advocates.
Author: Sebastian Beer Publisher: International Monetary Fund ISBN: 148436399X Category : Business & Economics Languages : en Pages : 45
Book Description
This paper reviews the rapidly growing empirical literature on international tax avoidance by multinational corporations. It surveys evidence on main channels of corporate tax avoidance including transfer mispricing, international debt shifting, treaty shopping, tax deferral and corporate inversions. Moreover, it performs a meta analysis of the extensive literature that estimates the overall size of profit shifting. We find that the literature suggests that, on average, a 1 percentage-point lower corporate tax rate will expand before-tax income by 1 percent—an effect that is larger than reported as the consensus estimate in previous surveys and tends to be increasing over time. The literature on tax avoidance still has several unresolved puzzles and blind spots that require further research.
Author: Agnessa O. Inshakova Publisher: Springer Nature ISBN: 981164621X Category : Technology & Engineering Languages : en Pages : 393
Book Description
This book discusses fusion of technology and body of knowledge through elaboration of theoretical concepts and conceptual frameworks to ensure the economic growth of the Russian Federation by utilizing the huge potential for innovation and entrepreneurship in Russia. The book presents recent research to solve the most challenging problems facing digitalization in the field of entrepreneurship in the country. Some of them need specialized personnel training; the considerable financial resources needed for the maintenance of digital technologies; how to market enterprises and organizations; and financial instruments designed to support industrial development. The proposed results will create the conditions for a systemic approach to tilting towards supporting new ventures through an improved regulatory framework—currently virtually absent in the field of entrepreneurship at the national level. The book defines prospects for investment in renewable energy sources, circulation of energy resources, and energy efficiency improvements to gain positive economic effects from the introduction of new technologies.
Author: Irina V. Gashenko Publisher: Springer ISBN: 3030015149 Category : Technology & Engineering Languages : en Pages : 223
Book Description
This book addresses the optimization of taxation systems, a topic currently being explored by scholars all over the world. It puts forward a critical opinion on the problem and offers an original approach to solving it – through informatization. The target audience of the book includes not only scholars and experts who professionally deal with taxation optimization issues, but also representatives of public authorities, and the general public. The book offers sound and practical solutions for the informatization-based optimization of taxation systems, and its conclusions and recommendations could be used in the management of tax systems for modern economic systems and in taxation optimization for specific economic subjects – individuals and organizations alike – , ensuring a broad range of practical applications.
Author: John Gallemore Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
We show that firms' ability to avoid taxes is affected by the quality of their internal information environment, with lower effective tax rates (ETRs) for firms that have high internal information quality. The effect of internal information quality on tax avoidance is stronger for firms in which information is likely to play a more important role. For example, firms with greater coordination needs because of a dispersed geographical presence benefit more from high internal information quality. Similarly, firms operating in a more uncertain environment benefit more from the quality of their internal information in helping them to reduce ETRs. In addition, we provide evidence that high internal information quality allows firms to achieve lower ETRs without increasing the risk of their tax strategies (as measured by ETR volatility). Overall, our study contributes to the literature on tax avoidance by providing evidence that the internal information environment of the firm is important for understanding its tax avoidance outcomes.
Author: Cesilia Mgimwa Publisher: ISBN: 9783346133847 Category : Languages : en Pages : 62
Book Description
Master's Thesis from the year 2019 in the subject Business economics - Investment and Finance, language: English, abstract: The perception that corporate tax avoidance represents a shift of value from the government tax authority to shareholders has been questioned by recent studies that finds this perception to not be legitimate in the data. In this study, I point out the evidence of the positive relationship between tax avoidance and firm level investment so that to provide an evidence of the managers' behavior of using savings from tax avoidance to fund firms' investment activities. Furthermore, this study, examine the effect of earnings quality and internal resource on the relationship between tax avoidance and firm level investment. I collected data of 3085 firms from the KisValue database with accounting data for companies listed on the Korea Stock Exchange (KOSPI) from 2012 to 2017, to test the effect of earnings quality and internal resource on the relationship between tax avoidance and firm level investment. I start with year 2012 because in 2012, International Financial Reporting Standards (IFRS) adoption becomes compulsory to all listed companies in Korea. In contrast from previous research, this study looks at the relationship of tax avoidance and firm level investment from a different perspective by focusing on the effect of earnings quality and internal resource on this relationship. The evidence of this study suggests that tax avoidance is positively associated with firm level investment. In other words, when firms increase tax avoidance, the firm level investment also increases. Adding to Dobbins and Jacob (2016) and Axel and Joachim (2017) research that found lowered tax rates, induce higher investments. This study also finds the evidence that the relationship between tax avoidance and firm level investment depends on the availability of internal resource and the level of earnings quality. The relationship between tax avoidance and firm level
Author: Stevanie S. Neuman Publisher: ISBN: Category : Languages : en Pages : 61
Book Description
This study develops and validates an ex-ante measure of firm-specific overall tax risk. We define tax risk as the potential that current actions or activities, or the failure to take actions or pursue activities, will lead to future tax outcomes that are different from expectations. Tax risk arises from the interaction of economic risk and tax law uncertainty. An ex-ante measure of firm-specific tax risk allows us to classify firms as pursuing a more or less risky tax strategy relative to other firms. Our study is important because revenue authorities worldwide have increased their scrutiny of firms engaging in risky tax strategies and greater tax risk can impact the economic performance of firms' investments. Tax practitioners and their clients engage in tax risk management to improve the expected outcomes of firm-specific tax strategies; however, researchers have not measured ex-ante tax risk or its association with tax outcomes. Our results document an association between our measure of tax risk and other measures of firm risk found in both the accounting and finance literatures. We also find a negative association between tax risk and cash effective tax rates, implying that, on average, firms manage tax risk effectively and earn returns (in the form of lower cash taxes paid) for engaging in higher tax risk. Thus, our results contribute to the ongoing discussion of corporate tax avoidance, as well as provide a replicable measure of firm-specific tax risk that researchers can use to examine questions about corporate tax avoidance more broadly.
Author: Russ Hamilton
Author: Russ Hamilton
Author: Sabrina Chi
Author: Alqatan, Ahmad
Author: Antonio De Vito
Author: Sebastian Beer
Author: Agnessa O. Inshakova
Author: Irina V. Gashenko
Author: John Gallemore
Author: Cesilia Mgimwa
Author: Stevanie S. Neuman