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

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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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Loan, N.T., Anh, N.V.H., Quoc, P.P. (2018). Detecting Corporate Income Tax Non-compliance from Financial Statements: A Case Study of Vietnam. In: Anh, L., Dong, L., Kreinovich, V., Thach, N. (eds) Econometrics for Financial Applications. ECONVN 2018. Studies in Computational Intelligence, vol 760. Springer, Cham. https://doi.org/10.1007/978-3-319-73150-6_52

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  • DOI: https://doi.org/10.1007/978-3-319-73150-6_52

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