The accounting and taxation relationship in Spanish listed firmsWord文件下载.docx

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Author（s）:

IsabelGallego（DepartamentodeAdministració

nyEconomí

adelaEmpresa,UniversityofSalamanca,Salamanca,Spain）

Citation:

IsabelGallego,（2004）"

TheaccountingandtaxationrelationshipinSpanishlistedfirms"

ManagerialAuditingJournal,Vol.19Iss:

6,pp.796-819

DOI

http:

//dx.doi.org/10.1108/02686900410543903

Downloads:

Thefulltextofthisdocumenthasbeendownloaded1620timessince2006

Abstract:

Therelationshipbetweenaccountingandfiscalruleshaslongbeencontroversial.Financialstatementsconformtoaccountingprinciplesandmethodsregardlessoftaxrules.Thisindependencegeneratesimportantpermanentandtemporarydifferencesbetweenaccountingandtaxableincome.ThepaperanalysesthebehaviouroflistedSpanishfirmsinthisaccounting‐taxationrelationship1996‐1998,theextentofintroductionoftheinter‐periodincometaxallocationmethod,andthenumberandtypesofpermanentandtemporarydifferencesreported.Mostfirmsadopttheincometaxallocationmethod,andreportthedifferences,althoughtheydonotalwaysspecifywhichtransactionsprovokedthem.Amongthelonglistofoperationsthatgeneratedifferences,themostfrequentareincometaxexpense,welfareschemes,provisionforpensions,monetarycorrection,accelerateddepreciation,orexemptionforreinvestment.Althoughthenumberandkindofdifferencesvarythroughtime,thevariationisnotstatisticallysignificant.ThisisthefirststudyanalysingsuchdifferencesforaEuropeanUnionstate.

Keywords:

Accounting,Taxation,Incometax,Spain

Type:

Researchpaper

Publisher:

EmeraldGroupPublishingLimited

Article

1.Introduction

Thedebateontherelationshipbetweenaccountingandtaxationbothinnationalandinternationalcontextshasbeenamajortopicintheaccountingliteratureduringthelastdecades.Oneofthemainapproachestoitsanalysisistodistinguishtwocountry‐groups.First,thosecountrieswherefirms'

financialstatementshavebeenreportedfollowingtheaccountingrulesandprincipleswithoutinterferencefromthetaxsystem;

and,second,thosecountrieswherethedrawingupoffinancialstatementsisdeeplyinfluencedbytaxationrules.Thistwofoldapproachhasgivenrisetodiscussiononwhetheraccountingrulesandtaxationrulesshouldbedependentorindependent.

ThisclassificationbycountriesdistinguishesAnglo‐Saxoncountries（USA,UK,Canada…）andcontinentalEuropeanUnion（EU）memberstates（Italy,France,Portugal,Spain…）.Thefirstgroupsettledthequestionoftheindependenceofbothkindsofrulessomeyearsago,statingthatfirmsshouldpreparetheirfinancialstatementswithouttakingintoaccountanypossibledivergencebetweenaccountingandtaxationcriteria.Thesecondgroupofcountrieshasallowedtheinfluenceoftaxationonreportingfinancialinformationformanyyears;

however,thesituationhasbeenchanginginrecentyears,toanewsituationofautonomyandindependencebetweentaxandaccountingrules.InSpain,theoriginofthissituationwastheapprovalofthe1990GeneralAccountingPlan（GAP;

SpanishcodeofaccountsestablishedunderDecreeLaw1643/1990）,whichsubstitutedtheformer1973GAPandadaptedtheSpanishaccountingsystembothtocorporatelawandtotheEUdirectives.

Whenwetalkaboutautonomyandindependencebetweentaxationandaccountingwerefertoasituationwhereaccountingincomeiscomputedbyapplyingaccountingrulesandprinciples,andthetaxableincomeiscalculatedbyapplyingtaxrules.Obviously,thecalculationoftwodifferentfiguresfollowingdifferentmethodologiesgivesrisetotheexistenceofimportantdifferencesbetweenbothtypesofincome.Fromanaccountingperspective,themethodselectedtoreportincomeunderthisindependencecriterionistheso‐called“inter‐periodtaxallocation”methodwhichconsiderstheincometaxexpenseasonemoreexpensefortheperiod.Italsopointsoutthepotentialexistenceofdifferencesbetweentheaccountingincomeandthetaxonederivedfromtheexistenceoftwodifferentkindsofrules,andclassifiestheresultingdifferencesastemporaryandpermanentdifferences.Temporarydifferencesaredefinedasthosethatareproducedinaparticulartaxperiodandvanishorrevertinsubsequentperiods,givingrisetodeferredtaxassetsanddeferredtaxliabilities.Aspermanentdifferences,werefertothosethatonlyaffectincomeinaparticularperiodoftime,notbeingrevertedinsubsequentperiods.

Althoughalltheseaspectshavebeenanalysedinseveralstandardsandstatementsfromatheoreticalpointofview,sofartherehasnotbeenmuchempiricalevidence,especiallyinSpainwheretheseparationbetweenaccountingandfiscalrulesisquiterecent（1990）.Tofillthisgap,thepresentstudyattemptstoanalysetheaccounting‐taxationrelationshipinSpanishfirms,focusingontheapplicationoftheinter‐periodtaxallocationmethodandonthetransactionsundertakenbythefirmswhichmayprovokeeitherpermanentortemporarydifferences.

Forthisreason,weanalysethedegreeofintroductionoftheinter‐periodincometaxallocationmethod,andthenumberandtypesofpermanentandtemporarydifferencesreportedbyfirmsthroughtime.Toanalysetheseissues,weexaminetheindividualaccountsoflistedSpanishfirmsovertheperiod1996‐1998.OurresultsshowthatmostSpanishfirmsareadoptingtheincometaxallocationmethod,andthattheyusuallyreportthedifferencessoderived,althoughtheydonotalwaysspecifywhichtransactionshaveprovokedthedifferences.Amongthelonglistofoperationsthatgeneratedifferencesbetweenaccountingincomeandtaxableincome,someofthemostfrequentlyfoundinSpanishfirmsareincometaxexpenses,welfareschemes,provisionforpensions,monetarycorrection,accelerateddepreciationorexemptionforreinvestment,amongothers.Evidenceisalsoprovidedontheroughlyequalnatureofthereporteddifferencesthroughtime,sincethevariationsarenotstatisticallysignificantforthesampleperiod.

Theremainderofthepaperisasfollows.offersanoverviewoftherelationshipbetweenaccountingandfiscalrulesinaninternationalsettingandinSpain.analysespreviousempiricalresearch.Theobjectivesofthestudyandthemethodologyemployedaredescribedinandrespectively.offerstheresultsforeachyearinthesampleperiodandcomparesthemovertime.Finally,ourconclusionsareshownin.

2.Relationshipbetweenaccountingandfiscalrules

2.1.Relationshipbetweenaccountingandfiscalrulesinaninternationalsetting

ToshedsomelightonthedebateregardingthedependenceorindependenceofaccountingandfiscalrulesinaSpanishsetting,itisworthlookingbacktothehistoricalrelationshipthathasexistedbetweenaccountingandfiscalrulesintheinternationalcontext.Thedegreeofindependencehastraditionallyvariedthroughtimeandcountries.NobesandParker（1981）setaclassificationoftheaccountingsystemsaccordingtotheirmacroormicroorientation（ChoiandMuller,1992）.Micro‐orientedsystemsadvocateasetofannualaccountsmainlydevotedtoshareholdersandinvestorsandwhicharenotinfluencedbyfiscalrules.Suchaccountingstatementswillprovideatrueandfairviewofthefirmandofitseconomicsituationanditwillbepossibletoapplyaccountingprinciplesandrulesregardlessofanyfiscalstatement.Thisseparationproducestwodifferentincomefigures:

accountingincome,measuredaccordingtoaccountingrules;

andfiscalincome,obtainedbyapplyingeachcountry'

sfiscalrules.Theconciliationofbothincomefiguresisobtainedbyusingextra‐accountingadjustments.Ontheotherhand,amacro‐orientedaccountingsystemadmitstheinfluenceoffiscalrulesproducingasetofaccountingstatementsmainlyorientedtocreditorsandlendersandwhosemainobjectivewillbetodeterminetheincomefigurefortaxpurposes.

Thismicro/macroclassificationalsoimpliesageographicclassificationthatdistinguishestwomaingroupsofcountries,thosein:

1.1.

TheAnglo‐Saxonarea（UK,USA,Canada…）wherefinancialstatementsaremicro‐oriented.

2.2.

ContinentalEUmemberstates（Belgium,France,Italy,Spain）wherefinancialstatementshaveanormativecharacterandwheretheinterferenceoffiscalrulesinaccountingruleshasbeenmostlyadmitted.

However,thissituationhaschangedthroughtimeandthedifferencesbetweenbothtypesofsystemshavediminishedinasmuchasthelegislationinthedifferentcountrieshasbeenadaptedtothefourthECcompanylawdirectivewhichsupportstheindependenceofthefinancialstatementswithregardtofiscalrules.

2.2.Contributionofdifferentstandardsandstatements

Oncetheindependencebetweenaccountingandfiscalrulesisassumed,thenextstepconsistsofanalysingwhetherthecorporatetaxpaidbyfirmsshouldbeconsideredasakindofresultsallocationorwhetheritisjustonemoreexpensefortheperiod.Fromamacroapproach,ithastraditionallybeenconsideredasanotherformofdistributionofthefirm'

sprofits,owingtotheinfluenceoffiscalrules.Onthecontrary,fromamicroapproach,corporatetaxesarejustonemoreexpensefortheperiod,thisconceptbeingnecessarytoallow