What is it about?
The study gave insight to the impact of corporate tax planning (TP) on tax disclosure (TD). Using tax expenses data set, with the detailed effective tax rate (ETR) by reconciling individual items of income and expenses.
Featured Image
Why is it important?
The study originality is regarded as the first attempt to examine the impact of TP on TD in a developing country such as Malaysia. Malaysian setting is an interesting one to examine because Malaysia could be similar to other countries in Southeast Asia. Results contribute significant insights to the discussion about TD regarding, which parties are responsible for the verification of TD by firms, and which parties benefit from this disclosure. Findings suggest that companies face a trade-off between tax benefits and TD when selecting the type of their TP.
Perspectives
I wish this paper makes what people might think is a boring, slightly abstract area like tax disclosure, kind of interesting and maybe even exciting. As the results show that tax planning, exhibit a robust positive influence on tax disclosure. This suggests that tax planning is related to lower corporate tax disclosure. In addition, companies with high tax planning attempt to mitigate the disclosure problem by increasing various tax disclosure. I hope you find this article thought-provoking.
Dr Mahfoudh Hussein Mgammal
Jouf University
Read the Original
This page is a summary of: Corporate tax planning and corporate tax disclosure, Meditari Accountancy Research, October 2019, Emerald,
DOI: 10.1108/medar-11-2018-0390.
You can read the full text:
Contributors
The following have contributed to this page
