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Detecting Corporate Income Tax Non-compliance from Financial Statements: A Case Study of Vietnam

  • Nguyen Thi Loan
  • Nguyen Viet Hong Anh
  • Pham Phu Quoc
Conference paper
Part of the Studies in Computational Intelligence book series (SCI, volume 760)

Abstract

In this paper, we combine interviews, surveys, and panel data regression to find factors affecting corporate income tax (CIT) non-compliance. This study is based on the analysis of 105 Vietnamese companies which were inspected by tax officials in 2011–2015. The results show that the following seven factors affect CIT non-compliance: the ratio of Working Capital/Total Assets, Turnover/Total Assets, Previous Loss, Inventories/Total Assets, Accounts Receivable/Turnover, size of the enterprise, and debt fines for tax administrative/tax amounts payable in the period. The article shows that the information from the financial statements can help the tax officials detect the CIT non-compliance, and suggest appropriate tax management policies for enterprises in Vietnam.

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Copyright information

© Springer International Publishing AG 2018

Authors and Affiliations

  • Nguyen Thi Loan
    • 1
  • Nguyen Viet Hong Anh
    • 2
  • Pham Phu Quoc
    • 3
  1. 1.Department of Accounting and AuditingBanking University of Ho Chi Minh CityHo Chi Minh CityVietnam
  2. 2.Binh Thanh District Tax DepartmentHo Chi Minh CityVietnam
  3. 3.Ho Chi Minh City Finance and Investment, State-Owned CompanyHo Chi Minh CityVietnam

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