Taxation between Creative Accounting and the regulations of Tax Administration An Empirical Study in the Department of Companies In the General Authority for taxes | ||
| AL-yarmouk Journall | ||
| Article 1, Volume 8, Issue 1, December 2016, Pages 95-122 | ||
| Abstract | ||
| The relationship between the accounting and tax should be based on positive cooperation, because the foundation role of the tax in the development of accounting throughout its long past, as well as the tax administration at the present time represents the important user of accounting outputs of the financial statements, but the tax administration often refuse menus Finance or do not agree with them in spite of auditing these financial statements and approval of the auditor. The financial statements Have been modified or non-acceptance by the tax administration for reasons supported by the irregularity or lack of easily obtainable in accordance with the accounting principles agreed upon, or the lack of its secretariat, including the implied hide information or fraud or manipulation in those lists, and this is the base axis of the research and of the procedures and methods of creative accounting which is intended to reduce taxable income and the resulting of taxation . Accordingly, we find that the taxation takes place according to the regulations adopted by the tax administration in the absence of conviction that administration as shown by the financial statements of the results of the work, or in other words when the net profit shown by the financial statements less than the net profits that are reached in accordance with the regulations, whether profits that real and actually reflect the result of activity or as a result of the practices of creative accounting, on the other hand, we find that the tax administration does not depend controls it relies net profit shown by the financial statements when the latter is greater than the net profit under controls whether the net real profit or reached of creative accounting practices that seek to inflate profits to achieve the goals of the company's management to raise the value of the shares or other targets. We discussed this subject in two sections, representing the first of which theoretical concept of creative accounting, causes and methods that are carried out during which, as well as the concept and mechanism of taxation, while taking second on the practical side of the study of a number of companies in the Department of companies in the General Authority for taxes. | ||
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