The Role Of Auditors Non Auditors And Internal Tax Departments In Corporate Tax Aggressiveness PDF Download
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| Author | : Kenneth J. Klassen |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2018 |
| Genre | : |
| ISBN | : |
Download The Role of Auditors, Non-Auditors, and Internal Tax Departments in Corporate Tax Aggressiveness Book in PDF, ePub and Kindle
Using confidential data from the Internal Revenue Service on who signs a corporation's tax return, we investigate whether the party primarily responsible for the tax compliance function of the firm -- the auditor, an external non-auditor, or the internal tax department -- is related to the corporation's tax aggressiveness. We report three key findings: (1) firms preparing their own tax returns or hiring a non-auditor claim more aggressive tax positions than firms using their auditor as the tax preparer; (2) auditor-provided tax services are related to tax aggressiveness even after considering tax preparer identity, which supports and extends prior research using tax fees as a proxy for tax planning; and (3) Big Four tax preparers in particular are linked to less tax aggressiveness when they are the auditor than when they are not the auditor. Our findings help policymakers and researchers better understand an important feature of tax compliance intermediaries, particularly how the dual role via audits is related to observable corporate tax outcomes.
| Author | : Kellie M. Carr |
| Publisher | : |
| Total Pages | : 145 |
| Release | : 2017 |
| Genre | : Auditing |
| ISBN | : |
Download Corporate Tax Aggressiveness, Auditor Provided Tax Services, and Audit Quality Book in PDF, ePub and Kindle
Using tax accrual quality as a proxy for audit quality, I investigate whether companies that significantly decreased APTS surrounding the effective date of the Public Company Accounting Oversight Board's 2006 Rules on Ethics, Independence, and Tax Services experienced an improvement in audit quality after the change. Given the specific target of the PCAOB 2006 restrictions is companies aggressively avoiding taxes with the assistance of APTS, I also investigate whether companies associated with tax aggressive services are also more likely to experience an improvement in audit quality following the reductions in APTS. Results suggest an increase in audit quality due to a reduction in economic bonding following APTS restrictions. Consistent with the economic bonding theory, companies that significantly reduced APTS experienced a larger improvement in audit quality after the change compared to companies that did not significantly reduce APTS. For tax aggressive companies, those that reduced APTS did experience a significant increase in audit quality after the change compared to tax aggressive companies that did not significantly reduce APTS. Moreover, companies considered important tax clients by their audit firms that significantly reduced APTS did experience a marginally greater increase in audit quality after the change compared to other important tax clients that did not significantly reduce APTS. Overall, my results indicate that the PCOAB 2006 restrictions were effective in decreasing APTS and economic bonding, thereby leading to improved audit quality, especially among companies associated with tax aggressive services. Accordingly, concerns for loss of knowledge spillover seem to be minimal. There are few studies that investigate the effectiveness of the PCAOB 2006 restrictions on audit quality. Therefore, my study fills this void by using a tax specific measure of audit quality, tax accrual quality, to specifically examine the target of the restrictions-- audit clients that are associated with aggressive tax services. My study confirms and expands APTS, economic bonding, audit quality, tax accrual quality, and tax aggressive research, and also provides insight into and support for current policy debates concerning APTS and tax aggressive services.
| Author | : Henry Aaron |
| Publisher | : Rowman & Littlefield |
| Total Pages | : 420 |
| Release | : 2004-05-20 |
| Genre | : Political Science |
| ISBN | : 9780815796565 |
Download The Crisis in Tax Administration Book in PDF, ePub and Kindle
People pay taxes for two reasons. On the positive side, most people recognize, even if grudgingly, that payment of tax is a duty of citizenship. On the negative side, they know that the law requires payment, that evasion is a crime, and that willful failure to pay taxes is punishable by fines or imprisonment. The practical questions for tax administration are how to strengthen each of these motives to comply with the law. How much should be spent on enforcement and how should enforcement be organized to promote these objectives and achieve the best results per dollar spent? Over the last few years, the U.S. Congress has restricted spending on tax administration, forcing the Internal Revenue Service to curtail enforcement activities, at the same time, that the number of individual filers has increased, tax rules have become more complex, and more business have become multinational operations. But if too many cases of tax evasion go undetected and unpunished, those who may have grudgingly paid their taxes may soon find it easier to join the scofflaws. These events in combination have created a genuine crisis in tax administration. The chapters in this volume evaluate the capacity of authorities to enforce the tax laws in a modern, global economy and examine the implications of failing to do so. Specific aspects of tax law, including tax shelters, issues relating to small businesses, tax software, role of tax preparers, and the objectives of tax simplification are examined in detail. The volume also builds a conceptual basis for future scholarship, with regard not only to tax administration, but also to such fundamental questions as whether taxpayers respond mostly to economic incentives or are influenced by their experiences with the filing process and what is the proper framework for evaluating the allocation of resources within the IRS.
| Author | : Brian Hogan |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
Download The Association Between Changes in Auditor Provided Tax Services and Long-Term Corporate Tax Avoidance Book in PDF, ePub and Kindle
This study examines the long-term impact on taxes paid by firms in the time period following the passage of The Sarbanes-Oxley Act of 2002. Legislators, concerned about auditor independence impairment, eliminated the provision of certain non-audit services by auditing firms and required audit committee pre-approval for tax services. As a result, firms decreasingly engaged their audit firms for tax services, instead possibly turning to other accounting firms or internal tax planning, even though information efficiencies may exist by combining the audit-tax function (i.e. knowledge spillover (Gleason and Mills 2011)). Utilizing a sample of 2,240 unique firms covering 2003-2009, we find an economically and statistically significant long-term negative relationship between firm reductions in auditor-provided tax services (APTS) and taxes paid. Further, a portion of this benefit is lost for some firms when returning to their auditor for tax services after a short break. In summary, firms who engage their audit firms for tax services continue to obtain benefits. Firms that reduce or eliminate their APTS, even if retaining other accounting firms for tax engagements, on average pay more taxes over the long-term.
| Author | : Kiridaran (Giri) Kanagaretnam |
| Publisher | : |
| Total Pages | : 59 |
| Release | : 2017 |
| Genre | : |
| ISBN | : |
Download Relation Between Auditor Quality and Corporate Tax Aggressiveness Book in PDF, ePub and Kindle
Using an international sample of firms from 31 countries, we study the relation between auditor quality and corporate tax aggressiveness. Using an indicator variable for tax aggressiveness when the firm's corporate tax avoidance measure is within the top quintile of each country-industry combination, we find strong evidence that auditor quality is negatively associated with the likelihood of tax aggressiveness, even after controlling for other institutional determinants such as home-country tax system characteristics. We also find that the negative relation between auditor quality and the likelihood of tax aggressiveness is more pronounced in countries where investor protection is stronger, auditor litigation risk is higher, the audit environment is better, and capital market pressure is higher.
| Author | : Edward L. Maydew |
| Publisher | : |
| Total Pages | : 39 |
| Release | : 2005 |
| Genre | : Corporations |
| ISBN | : |
Download The Changing Role of Auditors in Corporate Tax Planning Book in PDF, ePub and Kindle
"This paper examines changes in the role that auditors play in corporate tax planning following recentevents, including the well-known accounting scandals, passage of the Sarbanes-Oxley Act, andregulatory actions by the SEC and PCAOB. On the whole, these events have increased thesensitivity to and scrutiny of auditor independence. We examine the effects of these events on themarket for tax planning, in particular the longstanding link between audit and tax services. Whilethe effects are recent, they are already being seen in the data. Specifically, there has already beena dramatic shift in the market for tax planning away from obtaining tax planning services from one'sauditor. We estimate that the ratio of tax fees to audit fees paid to the auditors of firms in the S&P500 decline from approximately one in 2001 to one-fourth in 2004. At the same time, we find noevidence of a general decline in spending for tax services. In sum, the evidence indicates adecoupling of the longstanding link between audit and tax services, such that firms are shifting theirpurchase of tax services away from their auditor and towards other providers"--National Bureau of Economic Research web site.
| Author | : United States. General Accounting Office |
| Publisher | : |
| Total Pages | : 52 |
| Release | : 1997 |
| Genre | : Tax administration and procedure |
| ISBN | : |
Download Tax Administration Book in PDF, ePub and Kindle
| Author | : |
| Publisher | : |
| Total Pages | : |
| Release | : 2012 |
| Genre | : |
| ISBN | : |
Download The Effects of Tax Aggressiveness and Complexity on Investors' Preferences for Joint Provision of Tax and Audit Services Book in PDF, ePub and Kindle
| Author | : Antonio De Vito |
| Publisher | : Springer Nature |
| Total Pages | : 185 |
| Release | : |
| Genre | : |
| ISBN | : 3031517652 |
Download Tax Avoidance Research Book in PDF, ePub and Kindle
| Author | : Munawer Sultan Khwaja |
| Publisher | : World Bank Publications |
| Total Pages | : 157 |
| Release | : 2011-06-08 |
| Genre | : Business & Economics |
| ISBN | : 0821387545 |
Download Risk-Based Tax Audits Book in PDF, ePub and Kindle
"Revenue administration is a major interface between the state and its citizens. A good revenue administration is, therefore, an important attribute of good government. As a result, in recent years, policy makers have become increasingly aware of the importance of policies that will promote business development while ensuring voluntary tax compliance. In the modern context, it is neither desirable nor feasible to examine or inspect every single taxpayer. The revenue administration, therefore, has to rely on effective management of compliance. Promoting voluntary compliance, achieved through a self-assessment system in which taxpayers comply with their tax obligations without intervention from tax officials, requires developing modern approaches to audits based on risk management. The impact of audits critically depends on a properly designed audit selection strategy focused on high-risk taxpayers to provide the most cost-effective outcome. This, in itself, contributes to promoting voluntary compliance. Risk-based country audits: approaches and country experiences are an important study of this critical revenue function of compliance management."--Publisher's website.
