英文摘要 |
To uphold tax equity, Taiwan adopted the alternative minimum tax (AMT) in 2006. This research investigates whether reported earnings were managed in response to the adoption of AMT. The amount of basic income of an enterprise in Taiwan shall be the sum of the taxable income as calculated in accordance with the Taiwan's Income Tax Act and income exempted from profit-seeking enterprise's Income Tax. And the amount of basic tax shall be the amount of basic income after deducting NT$2,000,000, and then multiplied by the tax rate prescribed by the Executive Yuan. The amount of income tax payable will be the larger of the amount of basic tax and regular income tax. After the implementation of AMT, the tax burden generally increases.Tax system change often provides a substantial incentive for firms to manage earnings. Using data about basic tax disclosed by firms listed in the Taiwan Stock Exchange, our empirical results indicate that firms with higher amount of basic tax than regular income tax tend to manage their accruals to decrease reported income. |