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Deferred tax for tax planning in the Czech agricultural companies

Author

Listed:
  • Hana Bohušová

    (Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University, Brno, Czech Republic)

  • Patrik Svoboda

    (Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University, Brno, Czech Republic)

  • Lucie Semerádová

    (Department of Accounting and Taxes, Faculty of Business and Economics, Mendel University, Brno, Czech Republic
    Department of Accounting and Taxes, STING, Brno, Czech Republic)

Abstract

The paper is aimed at the materiality of deferred tax in agricultural holdings and the development of a proposal for simplification of deferred tax reporting in agriculture. The analysis of materiality and the structure of deferred tax in agricultural holdings which are obliged to report deferred tax is researched. The dataset covers the financial statements of the agricultural holdings (joint stock companies) obliged to report deferred tax during the period 2011-2015. The dataset covers hand-collected 1 110 firm-years. Based on the results of the study, the category deferred tax was identified as a material category and has to be reported. We found that the most common title for deferred tax reporting is the difference between the tax base and the carrying amount of long-term assets. The comparison of return on assets and adjusted return on assets reflecting the elimination of the deferred taxes effect reveals that the effect of deferred tax reporting is not so high in the large agricultural holdings in the Czech Republic.

Suggested Citation

  • Hana Bohušová & Patrik Svoboda & Lucie Semerádová, 2019. "Deferred tax for tax planning in the Czech agricultural companies," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 65(8), pages 349-358.
    • Handle: RePEc:caa:jnlage:v:65:y:2019:i:8:id:312-2018-agricecon
    DOI: 10.17221/312/2018-AGRICECON
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    References listed on IDEAS

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    1. Poterba, James M. & Rao, Nirupama S. & Seidman, Jeri K., 2011. "Deferred Tax Positions and Incentives for Corporate Behavior Around Corporate Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 64(1), pages 27-57, March.
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