The Divergence between Book Income and Tax Income

By Mihir A. Desai. Tax Policy and the Economy, 2003

175 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/be768bc59ce2c987f46b4dc6a4dc606ae09afeff

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In Accounting

1. Terry Shevlin
2. Michelle Hanlon
3. Edward L. Maydew
4. Scott D. Dyreng
5. Ryan J. Wilson
6. Gordon Richardson
7. Roman Lanis
8. Jennifer Blouin

In Strategy and Management

1. Edward L. Maydew
2. Ryan J. Wilson
3. Michelle Hanlon
4. Terry Shevlin
5. Scott D. Dyreng
6. Peter J. Frischmann
7. P. Panteghini
8. Lillian F. Mills

Citations in the corpus

• Economic consequences of increasing the conformity in accounting for uncertain tax benefits (2008, background): “Desai (2003) posits the growing difference between book and taxable income during the 1990’s was caused by increased levels of tax sheltering.”
• Seeking Shelter: Empirically Modeling Tax Shelters Using Financial Statement Information (2010, unknown): “Because locating a subsidiary in a tax haven is likely to be characteristic of tax sheltering consistent with Treasury (1999), Desai et al. (2006), and Hines and Rice (1994), I predict a positive association between TaxHaven and tax shelters.”
• FDI determination and corporate tax competition in a volatile world (2010, unknown): “Desai [15], [16], and Panteghini [37], [38].”
• Conforming Tax Avoidance and Capital Market Pressure (2019, unknown): “First, total book-tax differences are calculated as the difference between pretax income and estimated taxable income (e.g., Mills 1998, Desai 2003), and by construction include both temporary and permanent book-tax differences.”
• The association between book-tax conformity and earnings management (2014, unknown): “is that it will lead to less managerial discretion over financial reporting and consequently to less earnings management (Desai 2005; Whitaker 2005).(2) For example, according to Desai (2005), ‘‘A system that allows managers to characterize income differently depending on the audience legitimizes ea”
• The capital structure of multinational companies under tax competition (2009, background): “As shown in (4), the optimal percentage of income shifted is reached when the marginal gain in terms of tax savings, here expressed by tax rate di¤erential 18In particular, …nancial engineering has reduced the cost of recharacterizing pro…ts to avoid taxation.”
• Changes in corporate effective tax rates over the past 25 years (2017, unknown): “22 2011; Hasan, Hoi, Wu, and Zhang, 2014; Desai and Dharmapala, 2009). The model includes industry fixed effects based on the classifications in Barth, Beaver, Hand, and Landsman (2005) to account for any changes in the composition of firms across industries over time.”
• A review of tax research (2010, unknown): “…accrued tax expense to meet analysts’ forecasts.18 However, the change in GAAP ETR could also arise through tax planning transactions.19 For example, Desai (2003) provides specific examples of firms engaging in tax shelters where the main objective is to increase accounting earnings.”
• Long-Run Corporate Tax Avoidance (2008, methodology): “15 We follow Desai (2003) in this estimation procedure.”