Research Article
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Year 2016, , 991 - 999, 01.07.2016
https://doi.org/10.24289/ijsser.279041

Abstract

References

  • Carlon, Shirley; Tran, Alfred; Tran-Nam, Binh. 2012. How Close Are Taxable Income and Accounting Profit? An Empirical Study of Large Australian Companies. Retrieved from: http://docs.business.auckland.ac.nz/Doc/12-Shirley-Carlon-Alfred-Tran-Binh-Tran-Nam.pdf [accessed on June 26, 2016]
  • Danocen bilans za odanocuvanje na dobivka, Sluzben vesnik na RM, br. 174/14, Skopje, 2015
  • Desai, A. Mihir. 2003. The Divergence between Book Income and Tax Income, Tax Policy and the Economy, Volume 17, MIT Press. Retrieved from: http://www.nber.org/chapters/c11538.pdf [accessed on June 26, 2016]
  • Hanlon, Michelle; Shevlin, Terry. 2005. Book-Tax Conformity for Corporate Income: An Introduction to the Issues, Tax Policy and the Economy, Volume 19, MIT Press. Retrieved from: http://www.nber.org/chapters/c0166.pdf [accessed on June 26, 2016]
  • Macedonian Stock Exchange, http://www.mse.mk/mk/
  • Osmani, Rufi. 2016. Improved Business Climate and FDI in the Western Balkans. Journal of Economic and Social Studies, 6 (1). ISSN 1986 – 8502, doi: http://dx.doi.org/10.14706/JECOSS16611 (In Press)
  • Zakon za danok od dobivka na RM, SV. 13/2014
  • Zakon za smetkovodstvo, SV na RM, br. 95/2012

The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10

Year 2016, , 991 - 999, 01.07.2016
https://doi.org/10.24289/ijsser.279041

Abstract

The purpose of this study is to examine the accounting
versus taxable profit for selected firms. Totally nine firms are examined for
the period 2010-2014. Selected firms are indexed on Macedonian Stock Exchange Index -
MBI10 and belong to different industry sectors. Selected firms are the most
liquid on Macedonian Stock Exchange, have better business performance and
financial statements are prepared in accordance with IAS and IFRS. The analysis
is focused on effects of additional fiscal costs (firm income tax) to net
profit (loss).
The analysis argues that despite the fact that formally
Macedonia ranks among the countries with lower fiscal burden of 10% tax
(personal income tax and profit tax), the level of real fiscal cost is much
higher and very asymmetric. This
additional fiscal cost and this fiscal asymmetry is the result of the fact that
the law on profit tax in whole or part taxed in additional way 25 types of
operating expenses which are considered irrelevant; and even these costs exceed
the minimum limits set by the government of the country. In the case of
Macedonia, fiscal provisions of the law on profit tax affect illogically
situations that even firms operate with loss they should pay income tax; and
consequently, this increase the business loss on one hand and decrease the
economic and financial performance on the other hand.


References

  • Carlon, Shirley; Tran, Alfred; Tran-Nam, Binh. 2012. How Close Are Taxable Income and Accounting Profit? An Empirical Study of Large Australian Companies. Retrieved from: http://docs.business.auckland.ac.nz/Doc/12-Shirley-Carlon-Alfred-Tran-Binh-Tran-Nam.pdf [accessed on June 26, 2016]
  • Danocen bilans za odanocuvanje na dobivka, Sluzben vesnik na RM, br. 174/14, Skopje, 2015
  • Desai, A. Mihir. 2003. The Divergence between Book Income and Tax Income, Tax Policy and the Economy, Volume 17, MIT Press. Retrieved from: http://www.nber.org/chapters/c11538.pdf [accessed on June 26, 2016]
  • Hanlon, Michelle; Shevlin, Terry. 2005. Book-Tax Conformity for Corporate Income: An Introduction to the Issues, Tax Policy and the Economy, Volume 19, MIT Press. Retrieved from: http://www.nber.org/chapters/c0166.pdf [accessed on June 26, 2016]
  • Macedonian Stock Exchange, http://www.mse.mk/mk/
  • Osmani, Rufi. 2016. Improved Business Climate and FDI in the Western Balkans. Journal of Economic and Social Studies, 6 (1). ISSN 1986 – 8502, doi: http://dx.doi.org/10.14706/JECOSS16611 (In Press)
  • Zakon za danok od dobivka na RM, SV. 13/2014
  • Zakon za smetkovodstvo, SV na RM, br. 95/2012
There are 8 citations in total.

Details

Journal Section Makaleler
Authors

Fitim Deari This is me

Rufi Osmani This is me

Publication Date July 1, 2016
Published in Issue Year 2016

Cite

APA Deari, F., & Osmani, R. (2016). The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10. International Journal of Social Sciences and Education Research, 2(3), 991-999. https://doi.org/10.24289/ijsser.279041
AMA Deari F, Osmani R. The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10. International Journal of Social Sciences and Education Research. April 2016;2(3):991-999. doi:10.24289/ijsser.279041
Chicago Deari, Fitim, and Rufi Osmani. “The Analysis of Accounting and Taxable Profit: Evidence from Firms Indexed on MBI10”. International Journal of Social Sciences and Education Research 2, no. 3 (April 2016): 991-99. https://doi.org/10.24289/ijsser.279041.
EndNote Deari F, Osmani R (April 1, 2016) The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10. International Journal of Social Sciences and Education Research 2 3 991–999.
IEEE F. Deari and R. Osmani, “The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10”, International Journal of Social Sciences and Education Research, vol. 2, no. 3, pp. 991–999, 2016, doi: 10.24289/ijsser.279041.
ISNAD Deari, Fitim - Osmani, Rufi. “The Analysis of Accounting and Taxable Profit: Evidence from Firms Indexed on MBI10”. International Journal of Social Sciences and Education Research 2/3 (April 2016), 991-999. https://doi.org/10.24289/ijsser.279041.
JAMA Deari F, Osmani R. The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10. International Journal of Social Sciences and Education Research. 2016;2:991–999.
MLA Deari, Fitim and Rufi Osmani. “The Analysis of Accounting and Taxable Profit: Evidence from Firms Indexed on MBI10”. International Journal of Social Sciences and Education Research, vol. 2, no. 3, 2016, pp. 991-9, doi:10.24289/ijsser.279041.
Vancouver Deari F, Osmani R. The analysis of accounting and taxable profit: Evidence from firms indexed on MBI10. International Journal of Social Sciences and Education Research. 2016;2(3):991-9.

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