How Do Disclosures Of Tax Uncertainty To Tax Authorities Affect Reporting Decisions PDF Download
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| Author | : Erin Marie Towery |
| Publisher | : |
| Total Pages | : 150 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download How Do Disclosures of Tax Uncertainty to Tax Authorities Affect Reporting Decisions? Book in PDF, ePub and Kindle
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.
| Author | : Sanjay Gupta |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download The Effect of Mandatory Financial Statement Disclosures of Tax Uncertainty on Tax Reporting and Collections Book in PDF, ePub and Kindle
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.
| Author | : Adam Manlove |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2022 |
| Genre | : Disclosure in accounting |
| ISBN | : |
Download The Effect of Increased Private Tax Disclosure on the Relevance of Reserves for Uncertain Tax Positions Book in PDF, ePub and Kindle
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.
| Author | : Erin Towery |
| Publisher | : |
| Total Pages | : 48 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Unintended Consequences of Linking Tax Return Disclosures to Financial Reporting for Income Taxes Book in PDF, ePub and Kindle
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.
| Author | : Jennifer Blouin |
| Publisher | : |
| Total Pages | : |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
Download Pre-empting Disclosure? Firms' Decisions Prior to FIN 48 Book in PDF, ePub and Kindle
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.
| Author | : Zhuoli Zhou Axelton |
| Publisher | : |
| Total Pages | : 131 |
| Release | : 2021 |
| Genre | : Financial risk |
| ISBN | : |
Download An Investigation of Tax Risk Disclosures and Estimation Uncertainty in Securities and Exchange Commission Annual Reports Book in PDF, ePub and Kindle
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.
| Author | : |
| Publisher | : |
| Total Pages | : 116 |
| Release | : 2017 |
| Genre | : |
| ISBN | : 9789264295490 |
Download International VAT/GST Guidelines Book in PDF, ePub and Kindle
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.
| Author | : Joel Slemrod |
| Publisher | : |
| Total Pages | : 361 |
| Release | : 1992 |
| Genre | : Business & Economics |
| ISBN | : 9780472103386 |
Download Why People Pay Taxes Book in PDF, ePub and Kindle
Experts discuss strategies for curtailing tax evasion
| Author | : G. Schmölders |
| Publisher | : Springer |
| Total Pages | : 264 |
| Release | : 2006-09-05 |
| Genre | : Business & Economics |
| ISBN | : 0230625118 |
Download The Psychology of Money and Public Finance Book in PDF, ePub and Kindle
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.
| Author | : International Monetary Fund. Fiscal Affairs Dept. |
| Publisher | : International Monetary Fund |
| Total Pages | : 82 |
| Release | : 2012-08-16 |
| Genre | : Business & Economics |
| ISBN | : 1498340067 |
Download Fiscal Regimes for Extractive Industries—Design and Implementation Book in PDF, ePub and Kindle
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
