| Summary: | 碩士 === 逢甲大學 === 會計所 === 100 === This study is to explore whether non-public issuance use corporate taxable income as management objectives, and the possible methods using as earnings management tools? This means whether the company management uses the surplus management to reduce the company’s pretax net income in order to maintain a stable tax income to achieve the tax saving effect. And to further explore, the tax authority use what types of approaches to management earnings in order to avoid the large volatility magnitude of earnings causing the tax authorities for further checks, and a higher tax disbursement.
In this study, we use domestic non-public companies with financial audit and tax audit as our research parties who report annual taxes to IRS and approved by IRS during year 97 through year 99. Through the study and the analysis of samples to know if the companies using reporting gross margin and net profit ratio as objectives. The following is the conclusion of the difference in the sample companies reporting net profit ratio and approved net profit ratio by the Internal Revenue Service.
During the reporting by the analysis of gross margin, net profit rate of change information and reporting a net profit rate with the IRS approved a net profit rate difference adjustment, concentrated in the -1.5% to +1.5%, rather than showing a normal or a discrete distribution, might be presumed, the company management should be through earnings management to the company''s taxable income remained at a stable level; the other, by the analysis also shows that the company management would use the flexibility of tax Law, the use of inventories to sales manipulation cost of goods, its cost rate (and vice versa for the gross margin) maintained at a stable level, in order to avoid earnings volatility magnitude too large, causing the IRS suspicious.
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