tax gap statement of Jennie S. Stathis, Associate Director, General Government Division, before the Senate Budget Committee. by Jennie S. Stathis

Cover of: tax gap | Jennie S. Stathis

Published by U.S. General Accounting Office in [Washington, D.C.?] .

Written in English

Read online

Subjects:

  • Tax collection -- United States.,
  • Taxpayer compliance -- United States.

Edition Notes

Book details

SeriesTestimony -- T-GGD-88-22., Testimony -- GAO/T-GGD-88-22.
ContributionsUnited States. General Accounting Office.
The Physical Object
Pagination11 p. ;
Number of Pages11
ID Numbers
Open LibraryOL17672396M

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The gross tax gap is the difference between total taxes owed and taxes paid on time. The Internal Revenue Service (IRS) estimates that over the past 30 years, the tax gap has fluctuated in a narrow range—15 to 18 percent of total tax liability.

Some view. The IRS periodically estimates the tax gap, which gives a broad view of the nation’s compliance with federal tax laws. The new study covers tax years The report finds that there has been no significant change in the amount of the tax gap or the rate of compliance since the last report was issued for tax year   The Tax Gap.

The gross tax gap is the difference between true tax liability for a given tax tax gap book and the amount that is paid on time. It is comprised of the nonfiling gap, the underreporting gap, and the underpayment (or remittance) gap.

The net tax gap is the portion of the gross tax gap that will never be recovered through enforcement or. • The duty-only excise tax gap has reduced from % in to % in • The Corporation Tax gap has reduced from % in to % in • The avoidance tax gap has reduced from £ billion in to £ billion in File Size: 4MB.

The remaining gap means that tax rates must be higher than necessary to collect the revenue that comes in, and moreover, that such rates penalize the honest taxpayer for the sake of the evader. The absence of a tax cop on the beat demoralizes those who pay their correct amount and encourages evasion, further adding to the enforcement burden and.

This paper presents some stylised facts about the book-tax gap, i.e., the difference between book and taxable income, of Italian corporations. This divergence is a reflection of the usage of any tax shields and any applicable credits and rebates which, in turn, implies that the concept of taxable income is by: 3.

Yale L.J. ()The book-tax accounting gap allows corporations to minimize their earnings for tax purposes while maximizing them in reports to investors, all within the letter of the law.

Although the U.S. Treasury has reported the rising divergence between book and taxable income with alarm, scholars and policymakers have yet to consider fundamental reform.

Under the temporary-permanent difference delineation, the growth in the book-tax income gap may reflect greater use of corporate tax shelters, as the Treasury Department considered in its tax shelter report.

15 Even Treasury, however, did not know whether that was the case. It simply did not have the information necessary to evaluate the gap. Tax gap in the global economy. manages a portfolio of more than journals and over 2, books and book series volumes, as.

The size of the tax gap between and in. Bridging the Book-Tax Accounting Gap A B ST R ACT. The book-tax accounting gap allows corporations to minimize their earnings for tax purposes while maximizing them in reports to investors, all within the letter of the law.

Although the U.S. Treasury has reported the rising divergence between book and taxable incomeCited by: Bridging the Tax Gap: Addressing the Crisis in Federal Tax Administration by A readable copy. All pages are intact, and the cover is intact.

Pages can include considerable notes-in pen or highlighter-but the notes cannot obscure the text. At ThriftBooks, our motto is:. The book-tax accounting gap allows corporations to minimize their earnings for tax purposes while maximizing them in reports to investors, all within the letter of the law.

Although the U.S. Treasury has reported the rising divergence between book and taxable income. causes of the book-tax income gap the profit and loss account for the y ear in which the tax rate changes, and are required to be separately disclosed tax gap book : Alfred Tran.

As the report notes, the real problem with the book-tax income gap was not that it existed but that no one really knew why it existed and why it was growing. Following public outcry over the perceived abuses, the IRS introduced Schedule M-3 effective for tax years ending on or after Decem Cited by: 3.

Book and Tax Differences Differences between book and tax accounting have become a major concern of the IRS. According to a recent IRS Research Bulletin, the aggregate gap between book income and taxable differences continues to generate a sizeable gap in net income per books and net taxable income.

(4) Corporate Tax Revenue. For many years, the Internal Revenue Service has been studying the tax gap, which is the difference between aggregate tax liabilities and revenue collected.

The data just released are for the tax year and update the most recent previous data, which were for the tax year. According to the study, in Americans owed $ billion more in federal. "Closing the International Tax Gap." Reuven Avi-Yonah, co-author.

In Bridging the Tax Gap: Addressing the Crisis in Federal Tax Administration, edited by M. Sawicky, Cited by: 6. Downloadable. This paper presents some stylised facts about the book-tax gap, i.e.

the difference between book and taxable income, of Italian corporations. This divergence is a reflection of the usage of any tax shields and any applicable credits and rebates which, in turn, implies that the concept of taxable income is elusive. Moreover overlapping fiscal policies make harder, on the.

Introduction. This paper investigates the type of tax planning included in tax directors' compensation contracts. Using detailed data on tax director incentive compensation, we examine whether the incentives provided to tax directors are associated with lower effective tax rates and/or a wider book-tax gap.

We also examine whether tax director incentives are more Cited by:   Gap's book value per share for the quarter that ended in Jan. was $ During the past 12 months, Gap's average Book Value Per Share Growth Rate was % per year. During the past 3 years, the average Book Value Per Share Growth Rate was % per year.

During the past 5 years, the average Book Value Per Share Growth Rate was % per /5. reduce the tax gap—the difference between taxes owed and taxes paid on time—and better enforce taxpayer compliance.

Resource limitations and concern over taxpayer burden, however, prevent IRS from auditing more than a small fraction of individual income tax returns filed. How IRS allocates these limited resources demands careful consideration. Closing the international tax gap The size of the international tax gap.

The Unites States legitimately boasts one on the world's higher com­ pliance rates for tax collections. However, most of the taxes collected by the IRS are from income that is subject either to withholding at theCited by: 6.

Refund Anticipation Loans and the Tax Gap. By Book, Leslie. Read preview. Article excerpt. INTRODUCTION. The tax gap is an issue drawing increased legislative and administrative attention. The IRS estimates that the gap, the difference between taxes that are legally owed and taxes that are paid on time, was $ billion for tax year Book Tax Gap - Dwi Martani Abstract This research investigates factorc affecting the book tax gap in Indonesia.

Indonesian tax law limit the discretion used by management in calculating the income, therefore, the difference between accounting income and taxable income is considered to be a potential sign of earnings management.

We analyze several factors that-based [ ]. The difference between book and tax depreciation leads some people to say, "Oh, the company has two sets of books." The fact is the company must 1) maintain depreciation records for the financial statement depreciation that is based on the matching principle, and also 2) maintain depreciation records for the tax return depreciation that is.

Abstrak: Book Tax Differences dan Persistensi Laba pada Perusahaan tian ini bertujuan untuk mengkaji Book Tax Differences dan persistensi laba pada perusahaan manufaktur yang terdaftar di Bursa Efek Indonesia selama tahun Metode yang digunakan dalam penelitian ini adalah regresi : Nur Fadilah, Provita Wijayanti.

I gather HMRC will be publishing their latest tax gap figures this week. The last are here. I can make a fairly confident prediction.

The figure will be around £33 billion, simply because ever since this data was first published in the tax gap has never been below £27 billion and has never gone above £35 billion.

The Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) are successful federal tax credits for low- and moderate-income working people that encourage work, help offset the cost of raising children, and lift millions of people out of poverty.

Income from these credits leads to benefits at virtually every stage of life. impose tax on the employees, and if an employer is a state government or a private enterprise, state governments get to levy tax on the employees. 12 The Constitution follows similar patterns of tax-power sharing on most otherCited by: 2.

Kentucky use tax may be due on internet, mail order, or other out-of-state purchases made throughout the year.

Please click here to see if you are required to report Kentucky use tax on your individual income tax return. Also see line 27 of Form and the optional use tax table and use tax calculation worksheet in the instructions. The Internal Revenue Service estimates that the ''illegal sector'' of the economy (as best it can be measured), accounted for only percent of the tax gap of $ billion.

More Reporting. Book tax gap component variable, return on assets movement, the size of the company, operating cash flows and accruals affect the persistence of earning.

Referring to the book tax gap component test, variabel book tax gap such as amortisation, allowance for inventory obsolence, allowance for post service liability, subidiary’s income, and Author: Sawiji Wihardiningrum, Titik Aryanti. The tax code is created to raise money for the government.

Legislators use the tax code to provide economic incentives for targeted activities. These differences create a gap between book and tax measures of earnings. One difference is depreciation. This is an example of a temporary difference between tax and book accounting.

Several different data sources are integrated to analyze the phenomenon of corporate tax avoidance empirically and to test our hypothesis. We begin by simulating the book-tax gap for a large sample of firms from Standard and Poor's (S&P) Compustat database, using a procedure developed by Manzon and Plesko ().

Then, we construct an empirical Cited by: The purpose of this research is to prove whether Book Tax Gap (BTG) performed by companies listed in Indonesian Stock Exchange (excluding finance companies) during the period of has influence towards earnings persistence and firm value.

The focus on RALs in this essay allows for a further inquiry into the special role that preparers play in our tax system, and reflects the possibility that meaningfully working with the preparer community can be a means to reducing the tax gap in the thorny area of refundable credits.

Keywords: book tax gap, persistence of earnings, panel data, Indonesia Tujuan dari penelitian ini adalah untuk memeriksa faktor-faktor yang mempengaruhi book tax gap terhadap persistensi laba dengan menggunakan data panel perusahaan manufaktur di Indonesia selama These tax gap estimates are important because the tax gap (1) is one measure of the efficiency of the Federal tax system, (2) contributes to the budget deficit and drives tax rates up, and (3) undermines confidence in the Federal tax system and contributes to further noncompliance.

Note 1: Total lease payments of 1, + 10, IDC divided by 10 years. Note 2: 10, IDC divided by 10 years. Note 3: The deferred rent in this example is a plug that will make the entry balance, or it can be calculated as the straight-line expense less the cash paid each year.

(Deferred rent here equals total lease payments of 1, divided by 10 years. The IMF Fiscal Affairs Department’s Revenue Administration Gap Analysis Program (RA-GAP) assists revenue administrations from IMF member countries in monitoring taxpayer compliance through tax gap analysis.

The RA-GAP methodology for estimating the VAT gap presented in this Technical Note has some distinct advantages over commonly used. The pink tax is the extra amount that women pay for everyday products like razors, shampoo, haircuts, clothes, dry cleaning, and more.

This “tax” applies to items that span a woman’s entire Occupation: Features Director.ELIMINATING THE BOOK-TAX ACCOUNTING GAP second Bush administration wants to make permanent rate cuts)15 and would help remedy the perceived inequities of the corporate tax. II. DIVIDE AND CONQUER A.

Economic Income, Taxable Income, and Everything In-Between From today's perspective, it is easy to talk about the book-tax gap as a fact of life. Dalam penghitungan tax gap, tidak ada lagi permasalahan perbedaan struktur sistem perpajakan pada kedua sisi, pembilang maupun penyebut.

Ketika membandingkan dengan negara lain, penggunaan tax gap dianggap lebih fair karena perbedaan struktur perpajakan seperti tarif pajak, basis pajak, dan komponen penerimaan pajak telah dinetralisasi.

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