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Evolutions in the Accounting – Taxation (Dis)Connection in Romania, After 1990

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  • Costel ISTRATE

    (Universitatea “Alexandru Ioan Cuza” Iasi, România)

Abstract

Trying to credibly describe the Romanian relationship between accounting and taxation, we applied the method proposed in 1998 by Lamb et al. and developed by Nobes et Schwenke (2006). Six cases are available: from disconnection (case I) to identity (case II), through the various cases of influence on accounting aver taxation or vice-versa. Despite the short period considered (20 years), our results confirm a de jure disconnection between Romanian financial accounting and tax accounting, as suggested by Petre and Lazar (2006). But, one should not to much rely on appearances: in many cases, the accounting practice in Romania (especially SMEs) in marked by a close relationship with taxation.

Suggested Citation

  • Costel ISTRATE, 2011. "Evolutions in the Accounting – Taxation (Dis)Connection in Romania, After 1990," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 8, pages 43-61, December.
    • Handle: RePEc:aic:revebs:y:2011:i:8:istratec
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    References listed on IDEAS

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    5. Henrique Formigoni & Maria Thereza Pompa Antunes & Edilson Paulo, 2009. "Difference between Accounting Profit and Taxable Profit: An Analysis of Management of Accounting Results and Tax Management at Brazilian Public Companies," Brazilian Business Review, Fucape Business School, vol. 6(1), pages 42-58, January.
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    More about this item

    Keywords

    Romania; Accounting; Taxation; (Dis)connection;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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