Become a Member
Membership
Education
Events
Resources
Tax Knowledge Exchange
About us
Contact us
  Miscellaneous 2008

Effective Tax Rates of Corporate Australia and the Book-Tax Income Gap

Source: Australian Tax Forum Journal Article

Published Date: 1 Sep 2008

 
This study examines the effective tax rates of listed companies in Australia for a period of 11 years from 1994 to 2004. Two measures of effective tax rate are used: total tax expense divided by pre-tax accounting profit (ETR), and current tax expense divided by pre-tax accounting profit (ETR’). The difference between ETR and the statutory tax rate (STR) provides a measure of permanent differences. The difference between ETR’ and ETR provides a measure of timing differences. Thus, this study also examines the book-tax income gap. The findings are summarised as follows. First, using the General Industry Classification Scheme (GICS), an industry effect is identified. Three industry groups consistently have ETR and ETR’ significantly different from the default industry group in the regression models. Also, using accounting profit as a proxy for firm size, a size effect is identified. The top 20 firms appear to have the lowest ETR, while medium firms appear to have the highest ETR’.
Author(s)

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Subscribe Now

Already a Subscriber? Login now

Download

Details

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))

("TTI")

The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.

Tags

Miscellaneous 2008

Share this page