Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
An Empirical Analysis Of Book-Tax Reporting Difference And Tax Noncompliance Behavior In China, Feng Tang
An Empirical Analysis Of Book-Tax Reporting Difference And Tax Noncompliance Behavior In China, Feng Tang
Theses & Dissertations
The traditional accounting system in China was directly linked to the tax assessment. The close linkage between the two sets of reporting rules has substantially weakened, as China promulgated a series of accounting standards and regulations in the late 1990s. As a result, accounting for financial reporting purposes does not have to conform to accounting for tax reporting purposes. This divergence between the two measures of income will inevitably cause accounting book income to differ from taxable income. This is because the more the excess of book income over taxable income, the more the magnitude of tax audit adjustments. Mills …