Investigate the Role of Tax Aggressiveness Reporting on the Probability of Fraud in Financial Statements

Document Type : Original Article

Authors

1 ph.d.student , Department of Accounting Qazvin, Branch, Islamic Azad University

2 .Assistant professor, Department of Economics and Accounting, Faculty of Literature and Humanities, Gilan University

3 Assistant professor, Department of Accounting, Rasht Branch, Islamic Azad University, Rasht, Iran

10.22034/iaar.2021.134617

Abstract

The purpose of this study is to investigate the impact of tax Aggressiveness reporting on the probability of fraud in financial statements for listed companies in Tehran Stock Exchange. Given the implementation of the Comprehensive Tax Plan and the implementation of Standard Income Tax No. 35, a bold corporate tax strategy can be used to measure the likelihood of fraud in financial statements, used by shareholders and creditors, and regulatory authorities. To this end, four hypotheses were developed to investigate this issue and the data of 155 listed companies were analyzed for the period 2008-2017. The research regression model was tested and tested using logistic regression. The results showed that the difference between legal rate and effective tax rate as a direct indicator of tax Aggressiveness reporting has a significant positive effect on the probability of fraud in financial statements. In addition, the results confirm that the difference between the ratio of operating profit to sales and industry profitability as an inverse indicator of tax Aggressiveness reporting has a significant negative effect on the probability of fraud in financial statements. On the other hand, the results showed that the variables of the difference between Expressed profits and taxable profits and minimized profits had no significant effect on the probability of fraud in financial statements.

Keywords

Accounting and Auditing Research
Volume 13, Issue 50
July 2021
Pages 163-176

Files

Share

How to cite

Statistics