Difference between Accounting Profit and Taxable Profit: An Analysis of Management of Accounting Results and Tax Management at Brazilian Public Companies
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Abstract
This study aimed at knowing the general composition of the difference between the accounting results and tax result (book-tax differences - BTD) in Brazilian public companies in order to identify the explanation for this difference, either through the management of the earnings management (EM) and/or the taxes management (TM), or even by none of them. The research, exploratory and descriptive in nature, was based on a sample composed by the Brazilian public companies, making up a total of 276 company-years. Data analysis included the period from 2000 to 2005 and used the econometric models proposed by KS (1995) and Pae (2005) which permitted to analyze the level of management of results by means of discretionary accruals. The results achieved suggest that the models applied do not provide the support necessary for the determination of outcome management and tax management, as well as to identify the relation between these two practices and BTD. Therefore, we cannot conclude that there is a manipulation of results and/or taxes on the part of the Brazilian public companies considered in the sample, and of relation between these practices.
Keyword : results management, tax management, quality of accounting information gerenciamento de resultados, gerenciamento de tributos, qualidade da informação contábil
