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The persistence of book-tax differences

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  • Abdul Wahab, Nor Shaipah
  • Holland, Kevin

Abstract

Academic researchers and policy activists have used the difference between accounting income and estimated taxable income, commonly referred to as the book-tax difference (BTD) as a proxy of the unobservable level of corporate income tax planning. In drawing any policy implications from observed BTDs, an understanding of the sources of BTDs and their properties is important. In particular, identifying the degree of persistence or representativeness of an observed annual BTD is critical.

Suggested Citation

  • Abdul Wahab, Nor Shaipah & Holland, Kevin, 2015. "The persistence of book-tax differences," The British Accounting Review, Elsevier, vol. 47(4), pages 339-350.
    • Handle: RePEc:eee:bracre:v:47:y:2015:i:4:p:339-350
    DOI: 10.1016/j.bar.2014.06.002
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    Cited by:

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    2. Anna Görlitz & Michael Dobler, 2023. "Financial accounting for deferred taxes: a systematic review of empirical evidence," Management Review Quarterly, Springer, vol. 73(1), pages 113-165, February.
    3. Abdul Wahab, Nor Shaipah & Ntim, Collins G. & Mohd Adnan, Mohd Muttaqin & Tye, Wei Ling, 2018. "Top management team heterogeneity, governance changes and book-tax differences," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 32(C), pages 30-46.
    4. Heni PURWANTINI & Grahita CHANDRARIN & Prihat ASSIH, 2017. "Minimizing Tax Avoidance by Using Conservatism Accounting through Book Tax Differences. Case Study in Indonesia," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 140-147.
    5. Abdul Wahab, Nor Shaipah & Ntim, Collins G. & Tye, Wei Ling & Shakil, Mohammad Hassan, 2022. "Book-tax differences and risk: Does shareholder activism matter?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 48(C).
    6. Wei Huang & Tingting Ying & Yun Shen, 2018. "Executive cash compensation and tax aggressiveness of Chinese firms," Review of Quantitative Finance and Accounting, Springer, vol. 51(4), pages 1151-1180, November.
    7. Ângela Pereira & Cláudia Pereira & Luís Gomes & Armindo Lima, 2023. "Do Taxes Still Affect Earning Persistence?," Administrative Sciences, MDPI, vol. 13(2), pages 1-13, February.
    8. Heni Purwantini, 2017. "Minimizing Tax Avoidance by Using Conservatism Accounting Through Book Tax Differences:Case Study in Indonesia," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 6(5), pages 55-67, September.
    9. Nor Shaipah Abdul Wahab, 2016. "Malaysian multinational companies (MNC): Permanent and temporary nature of tax planning," Cogent Business & Management, Taylor & Francis Journals, vol. 3(1), pages 1248644-124, December.
    10. Joshua Aronmwan, Edosa & Okafor, Chinwuba, 2019. "Corporate Tax Avoidance: Review Of Measures And Prospects," International Journal of Contemporary Accounting Issues-IJCAI (formerly International Journal of Accounting & Finance IJAF), The Institute of Chartered Accountants of Nigeria (ICAN), vol. 8(2), pages 21-42, September.

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