| Summary: | 碩士 === 中原大學 === 會計研究所 === 98 === Since the earthshaking fraud of Enron in the US in 2001 has been revealed, the investigated found relations of accounting fraud and aggressive tax sheltering. Previous scholars consider the tax and financial report of firms to be the trade-off relationship, but recently literatures find that the trade-off relationship was ignored by management of firms, that is firms tend to upward financial income by earning management，and at the same time, downward taxable income by tax plan.
This research defined about tax and financial aggressive reporting is extends with Frank et al (2009). Tax reporting aggressiveness definition is if firms tend to downward the taxable income by tax plan; and aggressive financial reporting is firms tend to upward the financial income by earning management. The subject used in this research is listed companies in Taiwan between the years of 1998 to 2007, the number of sample used at the end is 4298 companies/ annual observation, and I use four methods to confirm that relationship between aggressive financial reporting and tax reporting for the listed companies in Taiwan. Last, because Statute for Upgrading Industry in Taiwan provides most tax incentive for electronics industry, to confirm that after tax incentive, if electronics industry will never engage in the tax plan activities, and affect the relationship in both aggressive financial reporting and tax reporting, therefore, I separate sample for electronics industry and other industry to observe if the result will be change.
The research shows :(1) results are consistent for four empirical methods, there are a significant relationship between aggressive financial and tax reporting , this means that listed firms in Taiwan tend to downward the taxable income by tax plan, at the same time, upward the financial income by earning management as well.(2)after separate the sample to electronics industry and other industry, the result would not change, means that even if electronics industry has the tax incentive, they would not stop doing tax plan activities, and will not affect the relation of aggressive financial reporting and tax reporting as well.
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